In the crypto world over the years, I've seen too many people's stories—some multiply their holdings tenfold in a month, while others return to zero overnight. After each bull and bear cycle, my deepest feeling is: this market isn't about who is smarter, but who can stick to their principles.

The longest-standing players never rely on complicated tricks. On the contrary, simple discipline is often the deadliest weapon. Today, I want to share a few ironclad rules that have kept me from being eaten by the market all these years. These things may sound dull, but few people truly practice them.

**First Pitfall: Chasing Gains and Selling Losses—This is a Human Trap and a Noose for Your Account**

You’ve probably experienced this feeling: a certain coin keeps skyrocketing on the K-line chart, watching it go up and up, becoming more and more restless, finally biting the bullet and jumping in—and then becoming the bagholder. Then, the market adjusts, panic spreads, and the coins in your hand follow the trend downward, leading you to cut losses. One buy, one sell, and all the meat is gone.

But truly profitable traders play completely differently. Their logic is hardcore: when others are greedily buying, I hold back; when others are terrified and selling, I buy more. The screen is full of red downward alerts, retail investors panic and sell, but these traders are instead figuring out how to pick up bargains. This isn’t psychology; it’s probability theory.

There’s a market law—bottoms are born in panic, tops are born in madness. When the entire internet is talking about crypto trends and major media are flooding the coverage, that’s often the riskiest moment. Conversely, when no one mentions the crypto space for months, and even your social circle isn’t sharing gains, the next wave of opportunity might already be brewing.

**Second Pitfall: Going All-In on a Single Coin—Betting Everything on a Dark Horse**

I’ll be blunt: never put all your chips on one coin. No matter how deep your faith in a project, no matter what “insider info” you hear, this is a big taboo.

Why? Because the uncertainty in the crypto market is huge. A policy change, a technical glitch, a founder’s tweet—any of these can rewrite a project’s fate. No matter how smart or well-informed you are, you can’t outbet a black swan event. The result of going all-in is usually going all-out.

Diversification isn’t just an insurance idea; it’s a necessary way to hedge risks. 20% in mainstream coins, 30% in potential sectors, 30% in hot phases, 20% in stable assets—such a structure ensures you have a way out at any market stage.

**Third Pitfall: Frequent Trading—Thinking You’re a Trader, Actually Working for the Exchange**

Some people check K-lines ten times a day, almost adjusting their positions every hour. The result? Transaction fees eat up most of their gains, and their mindset gets shattered.

The real logic for making money is this: after choosing the right direction, be patient. The market is a voting machine in the short term, a weighing machine in the long term. Your frequent operations are just fighting yourself. Those who make big money with only two or three trades a year usually catch the big trend.

This approach isn’t mysterious. The hard part isn’t understanding it; it’s executing it. When you see a coin drop 30% and still keep holding, it takes resolve. When a hot coin rises 50% and keeps climbing, resisting the urge to chase requires rationality.

Living in the crypto space until now, I am most grateful for learning to follow rules. The rules are simple, so simple they can be boring. But because they are simple, they are often overlooked—and they are the very thing that can help you surpass 99% of traders.