When did you enter the crypto world? How much capital did you invest at that time?

I am 38 years old this year. In 2015, I threw in 5,000 yuan and dove right in. At that time, I was completely a newbie, knew nothing, only that I needed to get on board early. Over more than ten years, this principal has now grown to 18 million. From a retail investor with pocket money to someone now considered middle class, the journey has indeed been quite long.

Honestly, being able to survive and make money until now is not due to luck, but because of the methodology I gradually developed over the years. Today, I will break down and share these insights with everyone.

**Capital Segmentation is the Lifeline**

Many people go all-in immediately when they enter the market. I’ve seen too many such cases, and the results are usually the same—one wrong judgment and total wipeout. My approach is completely opposite: divide the principal into five parts, and only use one part at a time for trading. What’s the benefit of this? Even if all five trades hit the wrong side, the total loss is only 50%. But if you get one or two judgments right, your gains can surpass the losses.

I also set a strict rule for myself: if a single loss reaches 10%, I must exit, regardless of how tempting the market still looks. The words “stop loss” sound simple, but executing it requires strong mental resilience. It’s precisely because of this strict rule that I avoided experiencing the despair of losing everything.

**Trend Judgment is More Reliable than Bottom Picking**

When the market is falling, there are always people excitedly saying to buy the dip. I’ve seen through that—99% of the time, it’s a trap. Instead, the correction or pullback during an uptrend is a real entry opportunity. The strategy of buying on dips may seem less exciting, but it allows you to survive longer.

When choosing coins, you need to be more discerning. Those coins that skyrocket in a short period—whether mainstream coins like ETH or obscure altcoins—I keep my distance from them. Chasing after hot trends often ends badly.

**Technical Indicators: MACD Explains Everything**

The indicator I use most often is MACD. When the DIF line and DEA line form a golden cross below the zero line and then both cross above zero together, that’s a clear buy signal. Conversely, when the two lines cross above zero and then fall below, it’s time to reduce your position quickly—don’t hold onto illusions.

Volume cannot be ignored either. When the price breaks out at a low level with increasing volume, it usually indicates big funds are entering, and an opportunity is coming. Conversely, if the price hits a new high but volume remains sluggish, such a breakout often lacks follow-through.

**Moving Averages to Uncover Trend Direction**

I usually combine the daily chart, 30-day moving average, 84-day moving average, and 120-day moving average. As long as one of these moving averages starts trending upward, it’s worth paying attention; the same applies in reverse. This combination has been used for over ten years, and it helps me navigate even the most complex markets.

**Don’t Fall into the Averaging Down Trap**

Never think about averaging down during a loss—that only turns a small hole into a big one. The correct approach is: cut losses decisively when losing, and only consider adding positions when there’s a clear profit. This order must not be reversed.

Ultimately, to avoid losing everything in crypto trading, you need to master three things: scientific capital management, sensitive trend judgment, and calmness when selecting coins. Master these three, and turning from a small retail investor into middle class is not just a dream.