Many people think the crypto market is just a big casino, but my journey from $100,000 to $1,000,000 has taught me—those who truly survive and make money rely on a system, not luck.

These four rules are survival principles I learned through trial and error with real money:

**Rule 1: Position Sizing Is the Lifeline**

Going all-in is the main reason most people get liquidated. My iron rule: invest no more than 20% of your capital in any single coin, and always keep 30% in cash.

For example, with $100,000 in capital, the maximum per trade is $20,000, and at least $30,000 is kept as emergency funds. The benefit is that when the market dumps, you can average down your cost, and when there’s a crash, you still have bullets to buy the dip. Surviving is a hundred times more important than getting rich quick.

**Rule 2: Stop Losses Must Be Instinctive**

I have a strict rule: if any coin drops by 10%, cut it. No hesitation, no hope for a rebound. For instance, with a $20,000 position, if you lose $2,000, you must immediately close out.

Additionally, once profits reach 15%, I set a trailing stop—locking in gains while leaving room for more upside. Remember, cutting losses is just a tactical adjustment; liquidation means you’re out for good.

**Rule 3: Blue-Chip Coins Are the Real Hard Currency**

I keep 90% of my funds in top-five blue-chip coins like BTC and ETH, and only use 10% to explore promising altcoin projects.

Blue chips are resilient; altcoins can easily go to zero—this is a hard-earned lesson. Those small coins that suddenly surge are most likely being manipulated by whales. The only ones that survive bull and bear cycles are those with strong consensus and good liquidity.

**Rule 4: Follow the Trend, Don’t Fight the Market**

What to do in a bull market? Start building positions in batches after BTC holds above the 200-day moving average, and capture the safest part of the move.

In a bear market? Stay in cash and wait until there’s a breakout with volume above key resistance before considering entry.

In a sideways market? Buy the dips when volume is low and the price is consolidating; take profits in batches when price surges with high volume.

Candlesticks are just appearances; capital flow is the essence. I look at large on-chain transfers to judge what the big players are doing, rather than chasing pumps or dumps based on emotions.

Ultimately, what really matters in crypto isn’t fancy technical indicators—it’s discipline. Use rules to lock down greed and fear, and only then will the market turn from a casino into your money printer.