Want to make a living from trading crypto? Remember these 8 rules to avoid three years of detours

Let me tell you a true story first.

I know a guy, nicknamed "Iron Head." He started trading crypto in 2020, right after he was laid off from his company, with only 20,000 yuan left in his pocket. His wife said if he loses more, he might as well sleep under a bridge.

Iron Head did something very counterintuitive—he didn't go all-in, nor did he play with low-quality coins. He spent three months drawing weekly charts for the top 100 coins. After finishing, he said: There are only two types of people making money in crypto—those with good luck and those with discipline. Luck we can't control, discipline we can.

Then he set himself 8 strict rules, unbreakable.

Rule 1: When a strong coin drops for 7 consecutive days, try a 5% position—no bottom fishing, just testing the waters.
Why? Because truly strong coins won't have a correction longer than 10 days. On day 7, you either catch a rebound or cut your losses small.

Rule 2: For coins that rise for two days in a row, sell half at the open on the third day.
Especially those that pump in the middle of the night—they are likely to crash during the day. Iron Head summarized this after losing three times.

Rule 3: Don't chase a coin that surges over 10% in a single day the next day.
He calls this "not eating the fish tail," leaving the rest of the profit for the whales and newcomers.

Rule 4: Remove from your watchlist coins that have been sideways for over 5 days with less than 5% volatility.
The probability that a coin that stays flat for a long time will rise is much lower than it will fall, especially for altcoins.

Rule 5: If you buy a coin today and it hasn't returned to your cost basis by the close the next day, sell immediately.
Don't wait, don't ask. Your principal is worth more than those little fantasies.

Rule 6: Trading volume is a thousand times more important than candlestick patterns.
Breakouts on high volume can be watched, but shrinking volume at new highs is just a trap for trap traders. Iron Head kept a small notebook—70% of missed opportunities were caused by shrinking volume.

Rule 7: Only trade coins whose 30-day moving average is trending upward.
If the 30-day MA is down, don't touch even good news. In a bull market, those losing money are the ones trying to buy the dip in a downtrend.

Rule 8: Don't diversify with small funds; concentrate on one sector.
If you have 100,000 yuan, buying ten coins isn't as good as focusing on two. Iron Head back then only traded Bitcoin and Ethereum with 20,000 yuan, and only diversified after doubling to 40,000.

With these 8 rules, Iron Head turned 20,000 into 800,000 in two years. Not a big shot, but he truly makes a living trading crypto—now full-time, working just two hours a day, taking his kid to the park in the afternoon.

He once said something funny: "You think I’m trading crypto, but actually I’m competing with my own hands. Set the rules, keep your hands steady, and the money will come."

And here’s a real tip:
Don’t always chase 100x coins. First, go a month without losing money, then talk about profits.
The crypto world isn’t short of stars, but it’s short of longevity. #Gate广场五月交易分享 $BTC $ETH