# Three Hard Rules for Surviving in the Crypto Market

I entered the market in 2017 with $5,000. Over those years, I watched friends get margin called and have their houses collateralized, while my account steadily grew, never retracing more than 10% of the principal. It’s not luck; it’s treating risk management as life.

Over these five years, my account grew from four figures to seven figures. I experienced countless dips and black swan events, but I never got wiped out. Today, I’ll share three practical methods I’ve summarized from real trading.

**First Rule: Lock in Profits, Don’t Let Unrealized Gains Turn into Clouds**

Every time I open a position, I set take-profit and stop-loss orders simultaneously. Once profits reach 10% of the principal, I withdraw 50% to a cold wallet—this money is truly realized. The remaining funds are used for rolling over positions.

If the market continues to perform well, I compound gains; if it turns around, I limit the retracement to half of the profits, keeping the principal rock-solid. Over these five years, I’ve taken profits 37 times, with the highest weekly withdrawal reaching $180,000. The exchange’s customer service even verified via video call that I wasn’t laundering money.

**Second Rule: Contrarian Positioning—Don’t Bet Everything on One Cycle**

Simultaneously monitor the daily, 4-hour, and 15-minute charts: the daily for the big trend, the 4-hour for volatility zones, and the 15-minute for precise entry points.

Open two orders on the same coin: Order A bets on a trend breakout with a stop-loss set below the prior low on the daily chart; Order B is a limit order in the overbought/oversold zone on the 4-hour chart, prepared to reverse.

Both orders keep stop-losses within 1.5% of the principal, with profit targets set at over 5 times the risk.

Markets spend about 80% of the time in consolidation. While others chase breakouts and get wiped out, I have opportunities on both sides. During the Luna crash in 2022, with a 90% dip in 24 hours, both my long and short positions took profits, and my account increased by 42% in a single day.

**Third Rule: Stop-Loss Isn’t Losing Money, It’s Buying a Ticket**

I treat each stop-loss as a ticket, exchanging 1.5% of the capital for a chance to participate in the market. When the trend is favorable, I move the take-profit to let profits run; when the market turns against me, I exit decisively.

Long-term data shows my win rate is only 38%, but my risk-reward ratio is 4.8:1—that is, for every dollar risked, I can consistently earn $1.90. The mathematical expectation is positive, and if I capture just two trends annually, my returns can outperform traditional investments.

**Three Additional Ironclad Rules for Practical Trading:**

Divide your capital into 10 parts, use at most one part per trade, and keep open positions to no more than three. After two consecutive losses, shut down and go exercise or sleep—never open a “revenge trade.” When your account doubles, withdraw 20% to buy US bonds or gold, leaving yourself a safety net.

This strategy sounds simple, but each rule runs counter to human nature—markets don’t fear wrong judgments; they fear being wiped out and unable to recover. Surviving is far more important than making quick money.