Profit runs, capital stays intact—that's the real skill to survive in the crypto world.

Three months ago, my friend Lao Chen had only 5,000 U in his account. That was after repeatedly cutting his losses and ending up in a mess. Last night, he suddenly sent me a screenshot—his account had grown to 120,000 U. My first reaction was to ask if he had made any aggressive moves or caught a big trend. His answer was quite interesting: "Nothing special, just sticking to the dumbest, most ignored method—letting profits generate more profits."

Having been in this circle for so many years, I’ve seen too many dreams of overnight riches shattered, and I’ve witnessed what kind of trading methods can truly last until the end. Lao Chen’s story is actually very typical and worth dissecting carefully.

**Wrong mindset, no matter how good your skills are, it’s useless**

Lao Chen used to be the type who stared at the charts at 3 a.m. His eyes would turn red whenever there was any movement from the Federal Reserve, and he’d fixate on the trend line. When any big influencer in the group shouted something, he wouldn’t consider position sizing or entry points—he’d go all in. The final result was turning 20,000 U into 5,000 U, and his wife was constantly unhappy. His mindset was completely broken.

I’ve seen too many people like this. I’ve roughly analyzed hundreds of trading records and found that 90% of losses come from the same problem—poor psychological control. The specific manifestations are just a few types:

**Type 1: Getting trapped and still throwing money in.**
This guy gets caught in a position and refuses to admit defeat, always thinking, "Just add a little more to lower the average cost." The result? The more he adds, the deeper he sinks, running out of ammunition one after another, and finally being forced to cut losses and admit defeat. I’ve seen people do this—originally losing 20%, but end up losing 60%.

**Type 2: Making a little profit and then getting timid, losing money and then stubbornly holding on.**
This is the most heartbreaking. When they make a small profit, they panic and run, fearing the profit will disappear. But when holding a losing position, they refuse to close, dragging losses from 5% to 50%. I’ve seen people like this—an order of 50,000 U, earning 2,000 U, they want to exit quickly, but when losing, they hold on from a 500 U loss all the way to liquidation.

**Type 3: Making a profit and then getting overly confident.**
One or two successful trades make them feel like a "crypto genius." Then they go all-in with heavy positions, only to lose all their profits in one shot. These people tend to die the fastest.

The most terrifying thing in the crypto circle isn’t the market volatility itself, but your emotional swings. Human greed and fear are more ferocious than any bear market.

**Snowballing profits, sounds stupid but really effective**

How did Lao Chen turn things around? The method is actually "stupid"—so stupid that most people overlook it.

He set a strict rule: after each profit, withdraw 50% of the profit and freeze it as capital. The remaining profit and the original capital continue trading. It sounds simple, but sticking to it is extremely difficult.

For example, he started with 5,000 U. In the first month, he earned 1,000 U through stable trading. Instead of reinvesting all, he withdrew 500 U and locked it in, leaving 5,500 U to continue trading. The next month, he earned another 10%, and again withdrew part of the profit, and so on.

In the first two months, the progress seemed slow—just earning a little each month. But by the third month, looking back, he saw that his account not only kept growing but also had a separate "insurance" fund withdrawn. At this point, his mindset changed completely—no longer betting everything on one shot, but genuinely managing an asset.

What’s the magic of doing this?

First, the psychological burden is instantly reduced. Knowing that part of the money is "insured" and won’t be lost allows you to operate more freely.

Second, this method naturally avoids many risks. You can’t put your entire net worth on one or two trades because you’ve set rules.

Third, the power of compound profits begins to show. It’s not obvious at first, but after a few months, the account’s growth curve starts to steepen.

**The survival rule in the crypto world is so simple and brutal**

I think this logic applies to everyone. In this market, most people die for the same reason: greed. They want to get rich overnight with one trade, or gamble on a big trend to change their life. But what happens? They gamble and end up back at square one.

Instead, those who survive the longest and earn steadily follow a simple, almost naive rule:

Protect capital > Consistent profits > Let profits generate more profits.

Whether the Federal Reserve cuts or raises interest rates, Ethereum rises or falls—these are not the core. The core is whether you can control your psychology and whether you can stick to your rules.

Lao Chen now has 120,000 U in his account. He told me that the most satisfying part isn’t the number itself, but the sense of stability—he knows he won’t lose everything overnight. And seeing steady growth each month, that feeling is completely different from staring at the charts at 3 a.m.

The crypto circle is still the same, but those who truly understand have long stopped gambling.