Five years ago, like many new retail investors, I entered the crypto world with just a few thousand yuan, daydreaming about "one coin, one villa." The immediate account shrinkage on the first day was a harsh wake-up call—markets don't show mercy.

That most difficult period, however, became my turning point. After being tossed around and confused, I finally saw clearly how this market actually operates. Later, I gradually realized a harsh truth: avoiding pitfalls is truly more important than making more money. Simply surviving is already a form of competitiveness.

Looking back over these five years, what truly changed me wasn't the bull runs of certain coins, but the deadly mistakes I never made.

**Small funds fear being idle the most**

Small capital may seem flexible, but in reality, it's easiest to be dragged down by frequent trades. I've seen too many people chasing gains and selling losses every day, only to have fees and slippage eat up all their profits. Opportunities worth taking are only once or twice a year. Instead of wasting half a year blindly trading, it's better to wait until the trend is clear before acting—this often yields better results.

**When good news appears, smart money has already withdrawn**

The market always reacts in advance to expectations. When you see overwhelming positive discussions in the community, institutional funds have already started cashing out. My simple rule is—if the good news hasn't played out on the first day, I will definitely withdraw at the opening on the second day, never follow the crowd or hold on stubbornly. This rule alone has saved me countless times, I can't even count.

**Proactively reduce positions before holidays**

Liquidity dilution during long holidays can cause unexpected volatility. I've fallen into this trap before, paying a hefty price. Now, my habit is to proactively reduce positions before important festivals—better to earn a little less than to risk those uncertain black swan events. This proactive risk management mindset has saved me more times than passive stop-losses.

**Cannot hold heavy positions for mid- to long-term**

Crypto volatility is inherently high. Holding heavy positions for mid- to long-term can easily lead to the awkward situation of "correct direction, but position dead." My bottom line is that mid- to long-term positions should not exceed 20% of total funds, leaving enough room for maneuver and preventing a single correction from completely wiping me out.

**Short-term trading must be as precise as a sniper**

Short-term trading isn't about the number of trades but about disciplined execution. If the direction is wrong, exit immediately—hold no longer than three days. This restraint has allowed me to survive countless fluctuations.

Finally, I want to say that this market is never short of opportunities; what’s lacking is people who live long enough to see them.