Someone asked me, after spending so much time in the crypto world, what is my biggest takeaway? My answer is always: learning to survive is far more valuable than getting rich overnight.

Do you remember that version of yourself staying up at 3 a.m. staring at the charts? Eyes sore as if sand had gotten in, while your account balance kept shrinking. Chasing after "thousandfold coins" with FOMO and going all in, only to see the price drop immediately after opening the position, turning a single investment into a "public welfare donation." Over the years in the cryptocurrency space, I’ve seen too many small investors go from full of hope to completely quitting. It’s not that the market doesn’t offer opportunities to make money; the problem is most people are just blindly "betting on rises and falls" without ever seriously learning how to live and exit.

Today I want to share three practical systems, all tested with real money, hoping to help everyone avoid those obvious traps that people keep jumping into even when they know they’re pitfalls.

**1. Precise Entry Instead of Frequent Trading**

Don’t be fooled by those screenshots of leverage-fueled riches. The secret to short-term trading in crypto isn’t about "trading ten times a day," but about making every move carefully calculated. My own habit is to make no more than 2 trades per day; more than that just adds stress.

A guiding principle: small stop-loss, steady take-profit.

I focus on two types of assets: first, mainstream coins with good liquidity and manageable volatility; second, projects with solid fundamentals that haven’t yet been hyped to the sky. As for those ambiguous whitepapers, I really don’t touch them.

Before entering a trade, I always set a 2% stop-loss—like installing a circuit breaker for my account. Once triggered, I must exit, and never entertain the idea of "waiting to see if it rebounds." Trading is somewhat like choosing at a barbecue stand: if the meat is burnt to a crisp, no matter how tasty, you have to give up. Otherwise, it only hurts your stomach (or your principal).

**2. Follow the Trend, Use Small Positions for Trial and Error**

The trend is your friend, this holds true in any market. When the weekly chart of mainstream coins shows a clear upward channel, it’s the right time for small funds to participate. Entering at this point carries much lower risk than bottom-fishing.

But here’s the premise: always use small positions to test the waters. My approach is to divide my capital into ten parts, using at most one part per trade. Even if I lose three times in a row, I still have seven parts left to fight with, enough to wait for the next opportunity.

Many people lose everything because they put their entire net worth on the line from the start. When bad news hits, they get shaken out immediately. Conversely, if you always keep enough ammunition, market volatility becomes a recharge rather than a death sentence.

**3. Mindset Management Trumps Technical Analysis**

This might sound a bit "cliché," but it’s the truth. I’ve seen highly skilled technical analysts still lose to their own psychological demons, and I’ve also seen "amateurs" thrive by sticking to discipline.

The biggest trap for small investors is emotional swings. Seeing a rise and regretting not going all-in; seeing a fall and panicking to cut losses. Under this mindset, even the best strategies can be executed poorly.

My own method is to set a monthly goal—not aiming for instant wealth, but a steady 3%-5% return is enough. With this expectation, my mindset stays calm. When I hit the target, I exit and take a break, rather than greedily continuing to gamble. Conversely, if I lose 3% at the start of the month, I take a break and wait until next month to restart. This way, I can protect my principal and stay clear-headed.

Crypto is like a marathon without a finish line; the one who finishes first isn’t necessarily the fastest, but the one who manages their stamina well, knows when to speed up and when to rest. Small funds that want to survive and thrive don’t compete for short-term gains; they focus on how long they can last.

These principles may seem simple, but executing them requires constant refinement. I hope my years of trial and error can save you some effort.