After three years in the crypto world, what crazy things haven’t I seen?

One buddy started with $30,000 and ran it up to $300,000 in just half a month, so excited he couldn’t sleep. The result? He went all-in at the top, and seven days later his account balance was down to four digits—he even had to think twice about buying a pack of cigarettes. On the other hand, there’s this Zen-like player, trading slowly and steadily, making only 50% profit in a year. Doesn’t look impressive, but for three years straight, he hasn’t lost a cent of his principal.

At the end of the day, this game isn’t about luck. Who really gets the last laugh? It comes down to two hard skills: tight position management and accurate trend prediction. These are way more useful than chasing rumors every day.

Let’s talk about position management first—it’s saved a lot of people.

Recently, a friend from Jiangsu came to me in a panic. He’d gone all in with $68,000 on a hot coin, and after a 15% pullback, $10,200 was wiped out just like that. His nerves were shot, finger hovering over the sell button.

I stopped him from doing anything rash and handed him my lifesaving method I’ve used for three years—the “Five-Part Position Method”:

- Divide your total funds equally into five parts, never use more than one part for a single trade, and never go all-in;
- Set a safety line for each trade, capping the max loss per trade at 2% of total funds (which works out to about a 10%-12% stop loss per coin);
- Set a minimum take-profit target at 50%, and keep your risk-reward ratio above 5:1.

In plain English: when you win, you eat well; when you lose, it’s just a scratch.

He reallocated into ZEC using this system. The first three trades: two losses, one win—which didn’t look great at first. But the final tally? Net profit of 33%. Not only did he cover his previous losses, he actually made money.

See the point? Making money in crypto isn’t about who wins the fastest—it’s about who can afford to lose. Even if you lose five out of ten trades, as long as your winners are big enough, you’re still the winner.