In a decade of ups and downs in the crypto market, I have witnessed too many dramatic stories—people around me getting rich overnight, and even more people being wiped out in an instant. From an initial capital of 120,000 to now a scale of 50 million, this experience has taught me a universal truth: the secret to surviving in the crypto world is not technical indicators, but mindset and understanding market laws.

These years, I’ve paid hundreds of thousands in tuition to learn six rules that may be more valuable than studying 100 types of candlestick patterns.

**Rule 1: Identify the Main Force Accumulating Funds, Don’t Be Knocked Out by Wash Trading**

A fierce rise followed by a slow decline—this often indicates that the main force is quietly building a position. As long as the pullback stays within a reasonable range, there’s no need to panic. I’ve seen too many people sell in a panic at the first sign of correction, only to see the market restart and they miss out.

A truly good asset has a characteristic pattern: increasing volume during upward movement, decreasing volume during pullbacks. Don’t be scared by small fluctuations; maintaining a sense of rhythm in holding positions is the key to making money. Many problems aren’t about choosing the wrong coin, but about not holding on.

**Rule 2: Obvious Signs of Distribution, Don’t Try to Catch the Bottom**

A sharp decline with a weak rebound—this is a standard sign of distribution. Rapid drops at this time are not opportunities but traps.

The most dangerous operation in crypto is blindly trying to buy the dip. Especially for coins that keep declining with increasing volume, every rebound is a trap to lure buyers in, and latecomers always get caught. Remember this: when the trend confirms downward, holding cash is more valuable than anything. Missing out on a bull market only means less profit, but trying to bottom fish in a bear market is suicide.

**Rule 3: Volume-Price Relationship Is a Mirror, Don’t Be Fooled by Surface**

Trading volume is the most honest indicator. A breakout with high volume is a real breakout; a rise without volume is illusory. The same applies in reverse—declines during sluggish trading often intensify.

**Rule 4: Patience Is a Hundred Times More Valuable Than Frequent Trading**

Most losses come from overtrading. Every additional trade adds risk—slippage, fees, emotional swings—all eroding profits. True experts tend to trade the least.

**Rule 5: Plan Your Stop-Loss and Take-Profit in Advance**

Think about your exit points before entering a trade. Many people are reluctant to sell after making money, and afraid to cut losses when losing. In the end, they fail. Set your ratios beforehand and execute when the time comes—don’t fight yourself.

**Rule 6: Mindset Determines Final Success or Failure**

Technical analysis can help, but mindset determines how far you can go. After seeing through three bull-bear cycles, my biggest takeaway is—stay rational, learn to wait, and know when to act and when to stay silent.

The market is always there. Missing this wave means waiting for the next. But if your principal is gone, the game is over.