After eight years in the crypto world, I’ve traded real money for three lifesaving rules.

I still remember that winter in 2018, sitting in a rented apartment in a Shenzhen urban village, staring at my computer screen as my account balance soared from 300,000 to nearly 3,000,000. Back then, I thought I was finally about to make it—ready to quit my job, move to a better place, change my life.

But what happened? Three days. In just three days, the market flipped. On Christmas night, I opened my trading app and my account balance was under 600,000. In a moment of desperation, I thought, “I’ll just wait until I break even.” The more I waited, the less I had. That painful experience taught me: wishful thinking will kill you.

Over the years, I’ve distilled three iron rules, and now I’m sharing them with you:

**Rule #1: Leverage is a double-edged sword**
I once used 20x leverage and made 400,000 in a single day—what a rush. But you remember “5/19,” right? In two hours, I lost 600,000 to liquidation. Now, my leverage is capped at 3x, and no single coin ever takes up more than 5% of my total funds. Playing it safe is the only way to survive long-term.

**Rule #2: Don’t bet your life savings on hot air**
I once went all-in on a project dubbed the “Chinese Ethereum.” My 250,000 principal grew to 1,500,000. Greed kept me in, and I watched it go to zero. Now, 85% of my money stays in mainstream coins like Bitcoin and Ethereum; the remaining 15% is just for having fun with altcoins.

**Rule #3: A stop-loss is your last shred of dignity**
I set an 8% stop-loss for every trade. If it hits, I cut—no hesitation. Too many people keep thinking, “Just wait, it’ll bounce back.” What they get is a deeper hole. Sure, you want to double your money, but ask yourself: if your account goes to zero, can you still enjoy a hotpot dinner with peace of mind?

There are plenty of opportunities in crypto, but you need to keep your capital safe to take advantage of them. I crawled up from the wreckage—these lessons were bought with real money. I hope they help you.