At 32, I settled down in Shenzhen and opened a small studio. Once my pace of life slowed down, I started to figure a lot of things out. Having two apartments took care of my worries—one for myself, and the other reserved for my parents.

After six years in the crypto market, I’ve never followed any so-called “trading gurus,” and I’ve definitely steered clear of those sketchy projects without even a whitepaper. To be honest, I’ve always used the most basic methods, but it’s these “dumb moves” that have multiplied my principal nearly a hundredfold.

Today, I’m laying out the pitfalls I’ve encountered and the lessons I’ve learned over the years. Compared to those flashy technical analyses, these down-to-earth principles can actually save you a lot of tuition fees.

**Rule #1: Only invest in what you understand**

DeFi protocols, NFTs, AI concept tokens… new things pop up one after another, but if you don’t get the underlying logic, no matter how hot it is, don’t jump in. Just listen to others’ stories of making money—blindly following the crowd usually means you’re the last one holding the bag. This logic applies everywhere.

**Rule #2: Invest no more than 30% of your principal—always have a backup plan**

No matter how bullish you are on a coin, only put in up to 30% of your total assets. What about the remaining 70%? That’s your buffer for black swan events. Those who go all-in—once a major correction hits, they’re basically out of the game. Remember, surviving is a thousand times more important than making a quick buck.

**Rule #3: Don’t hesitate to withdraw profits**

No matter how great the numbers look on paper, profits aren’t real until they’re in your pocket. My habit is that whenever my investment doubles, I withdraw half the profits to off-market and let the rest ride. The market can flip faster than a page—today’s unrealized gains can turn into losses tomorrow. Taking profits isn’t cowardly, it’s rational.

**Rule #4: Sharp spikes up or down are warning signs**

If the market is climbing steadily and corrections don’t exceed 10%, it’s probably a healthy trend. But if there’s a sudden 20%+ pump followed by a quick drop, chances are someone’s dumping. Don’t let FOMO (fear of missing out) drive you—staying calm and observing is way more reliable than jumping in impulsively.

**Rule #5: Stay away from the loudest-hyped projects**

If anyone in a group keeps spamming “guaranteed 10x” every day...