Many people ask me how I make money in the crypto world. In fact, the most effective methods are often the simplest. I have used this system to earn several million yuan, and today I will share the core logic.

**Signals for Market Protection**

When the market crashes, your coins only experience minor dips or even resist falling, which usually indicates that major players are maintaining the price. Such coins often imply an upward expectation, so there's no need to rush into cutting losses. Conversely, coins that fall far more than the market should raise caution.

**The Two Most Practical Trading Lines**

Short-term traders should watch the 5-day moving average—hold onto coins when the price is above it, and sell immediately if it breaks below. The mid-term approach looks at the 20-day moving average, with the same logic. It sounds simple, but execution is the key. Many people know this method but fail to maintain disciplined entries and exits.

**Participation and Management of the Main Uptrend**

Once the main upward wave is established and there’s no obvious increase in volume, it’s the right time to add positions decisively. Afterwards, observe two changes: if volume increases with the rise, continue holding; if volume decreases with a decline but the trend remains intact, stay firm; only when volume increases and the trend breaks should you consider reducing your position to cut losses.

**Two Hard Indicators for Short-term Trading**

If a coin doesn’t perform well within three days after purchase, sell it—don’t hold onto unrealistic hopes. Another bottom line is a 5% loss—once losses reach this level, cut your position unconditionally. It may seem mechanical, but it protects your principal.

**Opportunities in Oversold Rebounds**

If a coin drops 50% from its all-time high and continues to decline for 8 days, it usually indicates that the bears are exhausted. A rebound could start at any moment, so consider positioning yourself in advance.

**Why Choose Leading Coins**

Leading coins are the most aggressive when rising and the most resilient when falling. This is not a coincidence but a reflection of market recognition. Don’t be tempted to buy small coins during dips or hesitate because of large gains. The secret of leading coins is to find a reasonable entry point at a high level and then act at an even higher point.

**Trend Is the Core**

The biggest risk in trading is operating against the trend. Buying at the lowest point isn’t always the best; aligning with the trend is more important. When facing significant declines, don’t rush to bottom-fish; learn to abandon coins with deteriorating fundamentals. Remember: the power of the trend far exceeds your judgment.

**From Luck to Systematic Transformation**

It’s easy to get complacent after making some money, but consistent profit is the real test. You need to carefully review each trade and distinguish whether your gains are due to luck or genuine execution. Establish a stable trading system that suits your style—this is the foundation for long-term survival.

**The Highest Wisdom in Trading**

Don’t force trades if you’re unsure; holding cash is also a legitimate trading state. Many experts’ secret to making money is actually knowing when to stay out of the market. Protecting your capital comes first, then making profits. It’s not about how often you trade, but the success rate of each trade.

The path of trading may seem lonely, but as long as you have the right method and a stable mindset, opportunities will naturally come knocking.