Crypto Market Observation: The seemingly simple three-step strategy is actually a summary of experience gained through blood, sweat, and tears by investors in the crypto world.

You will find that this market is never short of gold diggers. However, most newcomers tend to fall into the same pit—blindly following trends, craving quick wealth, rushing into the market recklessly, and ultimately losing their principal. In fact, profits are never just a matter of luck. Traders who last the longest rely on playing by the rules.

**Level 1: Build Defenses, Say No to Impulsive Orders**

The core logic of choosing coins is straightforward. Bitcoin became "digital gold" not through hype—its absolute scarcity of 21 million coins combined with global consensus forms a solid value foundation. Ethereum has built an entire ecosystem using smart contracts, with applications already implemented for years. These top-tier coins are in a completely different league from those without real use cases or with flashy names. Countless people are attracted by the illusion of "the next 100x coin," only to buy at a high and see the price plummet after the whales sell off, losing everything. Stories like these happen every day.

Fund allocation requires discipline. What level of risk can you afford? Try only using 10% of your monthly surplus to participate. Even if you lose, it won't hurt too much. Hard expenses like mortgage and living costs must never be used as funds. The tragedy of margin calls and liquidation happens every day—this lesson is too costly to pay for twice.

**Level 2: Follow the Rules, Treat Take-Profit and Stop-Loss as Beliefs**

Position allocation isn't complicated. Allocate 70% of your holdings to 2-3 top coins to stabilize your core portfolio, and keep the remaining 30% as reserve funds or for trying new opportunities. This way, the volatility of a single asset won't damage your overall returns.

More importantly, set strict rules for take-profit and stop-loss in advance. When the trend hasn't clearly broken down, let profits run. But once the price falls below a key moving average, exit immediately. Many people's problem is here—they see losses and think "wait for a rebound to break even," but end up holding until their principal is gone. The regret of profits being swallowed back by the market is heartbreaking.

**Level 3: Adjust Your Mindset, Confront Your Greed and Fear**

A 10% daily fluctuation in the crypto market is normal. Some see a coin suddenly surge and chase high, often buying at the top. When their own coins drop, they panic and sell at a loss, missing the rebound. Emotions are the culprit.

A better approach: invest a fixed amount in mainstream coins weekly, follow a disciplined routine, and naturally lower your average cost. Short-term market fluctuations won't affect your rhythm. Trading with the trend is always more reliable than gambling on market movements.

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Ultimately, there is no "sure-win" legend in the crypto market. Not being greedy, not gambling, and not holding on stubbornly are the secrets to lasting longer. These are lessons learned through falling and getting back up in the market.