Preserve your principal to seize opportunities. Market conditions are endless, but startup capital is like fresh produce—only when kept fresh does it hold value.

Last week, I was chatting with a friend and showed him my account chart on my phone. His reaction was wide-eyed: "Is this rebound so strong?"

Honestly, compared to some "killer" trades, I prefer to talk about the experience of rebuilding my investment system after a 30% plunge, relying on 3,600 coins. In the never-closing market of cryptocurrencies, those who truly last are never the self-proclaimed market prediction experts, but those who know how to protect their principal.

Having been in the crypto space for so many years, I’ve seen meme coins make people dozens of times richer, and I’ve also seen liquidations wipe out someone’s entire holdings. But the secret to surviving until today isn’t precisely timing every market move, but adhering to three bottom lines.

**Bottom Line 1: Position Management is Your Firewall**

When I first entered the crypto space, I also fell into the rookie trap—going all-in. As a result, any market turn would plunge me into huge psychological panic and account losses.

Now I see placing orders as performing surgery. A doctor would never bet their entire fortune on a gamble. My trading rule is simple: never invest more than 20% of my total funds in a single trade, and two conditions must be met simultaneously. First, the price must break through a key technical resistance level; second, on-chain monitoring must show large holders increasing their holdings. Both conditions are indispensable.

Why do this? Because a 20% position means that even if this investment loses everything, I still have 80% of my capital alive, waiting for the next opportunity. In the crypto market, staying alive is winning. Many people die before dawn simply because they bet all their chips on one possibility.

**Bottom Line 2: Psychological Accounts and Risk Assessment Are Essential**

Different stages of investment require different mindsets. I divide my funds into three parts: survival funds (never to be touched), steady growth funds (low-risk strategies), and aggressive funds (able to withstand volatility).

Before each operation, I ask myself three questions: If this money loses 50%, can I still sleep peacefully? If there’s no movement for three months, will I regret it? Do I truly understand the team and technology behind the project?

If there’s even one "no," this money shouldn’t be invested.

**Bottom Line 3: Exit Discipline and Stop-Loss Execution**

This is the most easily overlooked but most critical point. My rule is: if losses exceed 15%, I must cut losses; if profits exceed 80%, I must lock in some gains. No matter how optimistic I am about this coin, or how I think the next market move will be. Discipline makes everyone equal.

I’ve seen too many people hold on to losing positions out of reluctance to close, only to give back 80% of their profits. In a market full of temptations, the hardest part isn’t making money, but having the courage to admit mistakes and accept "imperfect profits."

The cruelty of the crypto market is that it never cares how firm your original intention is or how deep your analysis goes. It only rewards those who survive. In the long run, the last one laughing isn’t necessarily the one who earns the most, but the one who protects their principal the best.