Trading cryptocurrencies is ultimately not about luck, but about testing discipline.

Seeing many people around me experience huge ups and downs in this round of the market, I want to share some insights. From losing sleep over past losses to now achieving relatively stable returns, it’s not about some get-rich-quick trick, but about establishing a simple, feasible, and truly effective trading system.

**The market is changing, and strategies must change accordingly**

I still remember the early 2025 surge when Bitcoin broke through the $120,000 all-time high and then rapidly corrected, trapping many at the top. I also learned a lesson from that turbulence — the biggest danger in trading crypto isn’t how the market moves, but rather not having a plan.

The current situation is completely different from before. A large amount of institutional funds are entering through channels like ETFs, and Bitcoin’s nature is quietly shifting. It now has the inflation-resistant properties of gold, yet is also influenced by macro sentiment fluctuations like tech stocks. In such an environment, retail investors must change their mindset to survive.

**Capital preservation first, profit second**

This is a painful lesson learned with real money. No matter how good your trading logic is, if a black swan event hits and you can’t withstand it, a margin call will wipe out all your plans.

My own summarized capital management framework is quite straightforward:

First is position sizing. For example, if you have a capital of 100,000, don’t risk more than 10,000 on a single trade, and keep each position within 20% of your total funds. The benefit of this approach is risk diversification, preventing a single misjudgment from devastating your entire account.

Second is stop-loss. I set a strict rule for myself: exit immediately if losses reach 2%, no excuses, no fantasies. Following this rule is the hardest part, but also the most important.

Third is avoiding high leverage. Especially for beginners, this is a trap to watch out for. Leverage amplifies not only profits but also risks.