Having navigated the crypto market for eight years, I started with just 50,000 yuan and grew it to over 50 million. Many people ask me what the secret is. Honestly, it’s not luck at all, but a principle that many overlook—being willing to hold cash and never fully invested.

The core strategy is to use 50% of your capital to aim for 80% of the profit. I’ve taught this method to a few friends, and one of them doubled his funds in just three months. Instead of hiding it, I might as well explain it thoroughly.

**Positioning logic is crucial**. Divide your total funds into five parts, investing only one-fifth each time. This may seem conservative, but it actually maximizes your error tolerance. Set a stop-loss at 10%, and once you hit it, exit decisively—limiting your loss to at most 2% of your total capital per trade. How clever is this? No matter how many mistakes you make, you won’t go broke. Take profits at more than 10%, so you don’t have to worry about getting stuck.

**Win rate is everything; the two words are ‘follow the trend’**. Many people can’t distinguish between a rebound during a decline and a true bottom reversal. Honestly, most rebounds during a downtrend are traps; the real golden opportunities appear during pullbacks in an uptrend. Buying the dip is always more reliable than trying to catch the bottom—this is a key difference to understand.

**There are considerations in choosing coins**. I stay far away from coins that surge short-term, whether mainstream or altcoins. Why? After a high-level stagnation, a decline is inevitable. Instead of gambling, it’s better to wait. Use MACD as a signal: when a golden cross appears below the zero line and breaks above zero, it’s time to enter; when a death cross occurs above zero, reduce your position decisively. When used correctly, this indicator can help you avoid many pitfalls.

**Scaling in should be scenario-specific**. Adding to a position when you’re losing money only makes you more trapped. The right approach is to consider increasing your position only when you’re in profit. This order must not be reversed.

**Volume-price relationship is the soul**. Pay attention to coins that break out with increased volume at low levels—that’s a real sign of upward movement. When volume increases at high levels but the price stagnates, it’s time to exit—don’t be greedy.

**Trend judgment is based on moving averages**. Only trade coins in an uptrend. When the 3-day, 30-day, 84-day, and 120-day moving averages are all turning upward, the main upward wave and long-term opportunities are here. I’ve used this combination for eight years, and I’ve never lost.

**The last point, and the easiest to overlook—daily review**. Check whether your trading logic is sound, compare with weekly K-line trends, and adjust your strategy promptly. The market changes, and so should your methods.

This systematic way of thinking has helped me steadily advance in the crypto market. It’s not a gambler’s mindset, but an engineer’s mindset.