I’ve seen too many people enter the market armed with a bunch of candlestick indicators and glued to insider rumors, only to end up getting liquidated and leaving the game. Ironically, it’s those who seem “dull”—not greedy for the lowest point, not chasing the highest peak, just sticking to a few hard rules—who always manage to walk away with steady profits.

After years of ups and downs, I’ve summed up a few survival rules. Don’t underestimate them—breaking just one could cost you three years paying off debts.

**Rule #1: Don’t Rush In During Mania**
When prices are soaring and everyone in the group is shouting “get in,” that’s when risk is at its highest. The real bargains are often hidden in a sea of negativity—when no one’s opening their exchange app for days, forums are filled with panic-selling posts, that’s when it’s actually worth making a move.

**Rule #2: Diversify Your Holdings—It’s the Bottom Line**
I like to split my funds into three: 30% in mainstream coins for the long haul, 40% reserved for swing trades, and the remaining 30% as emergency cash. Those who go all-in get wiped out by a single black swan event; those who diversify always have ammo left, ready to act when others panic.

**Rule #3: Cut Losses at 5%—No Hesitation**
If a single position loses more than 5%, cut it immediately—no averaging down, no holding on. Protecting your principal is everything; as long as you have money, the next opportunity will always come.

Here are some practical mantras—memorize them and you’ll avoid many pitfalls:

- **Don’t trade during sideways markets; wait for a clear direction**
Most people get liquidated during choppy, range-bound periods. When prices are grinding back and forth, staying on the sidelines is the safest move.

- **Panic crashes are prime bargain-hunting opportunities**
When the market is collectively dumping and everything’s red, that’s often the best time to buy cheap.

- **Build positions pyramid-style, drive your cost basis down**
In a downtrend, add to your position every 10% drop—keep averaging down your cost.

- **Be wary of sideways movement after a sharp rally**