The recent news section was almost overwhelmed. A friend who has been following me for quite a while shared his trading record—he turned a 500 yuan principal into over 30,000. When he sent it to me, he only included four words: "Did as you said."

What's the most surreal thing after all these years in the crypto market? On one hand, you see overnight riches going viral, while on the other, you witness accounts going to zero in just a few hours. The most outrageous thing I've heard is "just take a gamble," but the most reliable is actually this: follow the rules. After guiding newbies for so long, the question I get asked the most is always "which coin will take off," but what I care about more is another question—can you protect your principal first?

Don’t underestimate the little bit of seed money you have. This market is like a tropical rainforest. For a sapling to grow into a towering tree, the key isn’t wild growth, but surviving storms and lightning. I remember when I met Akai in 2022, the guy was ready to jump into leveraged trading with just 800 yuan. I directly locked his account’s trading permissions—not because I like to meddle, but because I’ve seen too many people eager to double their money end up losing everything. Three months later, he did manage to turn it 30x. Why? All thanks to the three strict rules I’ve repeated countless times.

**Rule 1: Divide your money into three piles—never put it all in one basket**

I only figured this out after getting burned in the bear market. Split your starting capital into three parts, each with its own strategy:

- **150 yuan as the “quick in and out” position:** Only focus on the two most stable mainstream coins. Sell immediately after a 3% gain; if it drops 2%, cut your losses. Don’t get emotionally attached to the charts—be content with small profits.
- **250 yuan as the “swing position”:** Stare at the daily chart and wait for a clear signal: a breakout in both volume and price. Don’t take action until you see it. After entering, hold for no more than 5 days. Exit when it’s time.
- **The remaining 400 yuan is the “emergency reserve”:** This is specifically for sudden market opportunities or extreme situations—keep it locked and untouched most of the time.

What’s the biggest benefit of this setup? Even if the first two positions go wrong, you still have a trump card to turn things around.