I have been in this circle since 2017, experienced the glory of Bitcoin at $30,000, and witnessed tragedies like LUNA that wiped out accounts overnight. To be honest, the harshest time was when I was liquidated 8 times in a row with leverage, and my account shrank by 200,000. That period was really overwhelming. It wasn't until later that I understood a principle: the crypto world is not a casino; frankly, it's more like a repair shop—relying on skills and discipline, with luck just being superficial.

Today, I want to share lessons learned through real money. For retail investors who are easily driven by emotions and tend to chase high and cut low, this should be somewhat helpful.

**Level One: Three Things You Must Never Do**

No matter how crazy the rise, don’t chase; no matter how deep the fall, don’t rush to buy the dip. You’ll notice that the market’s most frantic moments are often when the big players are fleeing. Remember the FTT collapse? Good news was everywhere, but the price just refused to move, then suddenly plunged and halved. My current approach is to only consider entering when the price breaks below the 20-day moving average on the monthly chart. It’s better to earn a little less than to get liquidated.

Once you set a stop-loss, you must execute it. Don’t think about holding on longer. 90% of retail bankruptcies start with unwillingness to cut losses. For example, if your stop-loss is set at $1.50, and the price drops to $1.40, your mind is thinking “wait and see”—but the market doesn’t care about your fantasies. Like an engine with a flaw, ignoring it will only lead to complete failure. My rule now is to cut losses immediately if they exceed 3% of the principal per trade. After cutting, I shut down the software, avoid replaying, and don’t get caught up in the emotions.

Never go all-in or use leverage. Opportunities in the circle are always more than the capital. In 2023, I saw someone holding a full position in ORDI, which tripled in value but refused to sell, only to fall back to the starting point, and their account returned to zero. Going all-in is a gambler’s approach; keeping 30% cash on hand is smarter—like spare tires in a repair shop, ready for emergencies when a tire blows. As for leverage, it’s a trap designed specifically for the poor by Wall Street. 10x leverage only needs a 10% drop to wipe out your account. The toxicity of this stuff is beyond measure.