In the autumn of 2016, when I was unemployed, I sat outside the exchange for an entire week with only 50,000 yuan left. Finally, I made up my mind and went all in to buy 8 bitcoins at an average price of 6,000 yuan—my entire savings.

The following year, Bitcoin went on a frenzy, with an annual increase of over 1700%, and my account skyrocketed to 800,000 yuan. I watched the K-line every day, waking up in the middle of the night, truly believing that financial freedom was just around the corner. But in 2018, reality hit hard—the market shrank by 70%, and my assets plummeted straight down to 180,000 yuan. That night, I realized a truth: the numbers on the screen are all fake; only the money I actually sell counts.

Starting in 2020, I changed my approach. I stopped chasing quick gains and losses, and shifted to long-term mining and DeFi operations. Over three years, my account steadily grew to 3 million. Someone asked me how many hundredfold coins I had copied, and my answer is very simple: those who have survived in the crypto world rely on one thing—their ability to keep risk in check.

**The First Iron Law: Capital Preservation Wins**

There are plenty of opportunities in the crypto space, but if your principal is gone, the game is over. During the 2021 altcoin boom, I was also tempted and bought a small coin. When it rose 50%, I withdrew my principal. Later, it crashed 90%, but I managed to escape quickly and still made a profit. This isn’t some clever trick; it’s the most straightforward way to survive.

**The Second Iron Law: Only Play What You Understand**

Didn’t read the white paper clearly? Can’t verify the team’s background? Is there a black hole in the token model? Then no matter how tempting it looks, don’t touch it. This principle helped me survive the crazy IEO wave in 2019 and avoid the subsequent chaos. There’s always another trend on the market, but once you step into a pit you don’t understand, your principal often takes the hit.

**The Third Iron Law: Stop Loss is Take Profit**

Any position that drops 20% should be considered for stop loss. It’s not about giving up; it’s about having bullets for the next opportunity. Many people stubbornly hold onto their trapped positions and end up with permanent losses. I’ve seen too many burn all their patience on one coin, missing the real opportunity.

In eight years, I haven’t executed a perfect operation, nor have I copied any hundredfold coins. The money I’ve earned has been accumulated through repeated proper risk management. The crypto world is never short of heroes; what’s missing are those who survive until the end and watch the sunset.