Three months ago, someone told me that ten thousand yuan could turn into five million in the crypto market. I would have definitely thought they were a scammer.

That is, until my younger cousin—a fresh graduate, a naive young guy—came to me with his savings from an internship. He didn’t want to be just an employee, so I took him into the crypto market. No insider info, no pre-planned moves—ninety days later, his account hit seven figures. During the New Year gathering, he treated everyone, even my dad, praising his success.

Sounds incredible? Actually, it all comes down to three strict rules:

**Don’t treat leverage like a rocket.** I learned my lesson the hard way years ago, when I used 20x leverage and made 500,000 yuan in a single day, feeling like I was the best in the universe. But when a policy change hit, my positions evaporated in two hours. Now, I only trade with 3x leverage, keeping each coin’s position at 5% of my portfolio—survive first, then profit.

**Stay away from small altcoin gambling tables.** I used to hold 300,000 yuan in altcoins, with unrealized gains of 1.8 million, thinking it wasn’t enough. Then the project team ran off, leaving nothing behind. Now, 85% of my funds are in mainstream coins like BTC and ETH, with only 15% trying out new tokens. No matter how volatile the market, my core holdings won’t collapse.

**Stop-loss isn’t just for show.** I used to hold on through 15% drops, hoping for a rebound, only to deepen my losses and even use my house down payment. Now, I set an 8% stop-loss on every trade—trigger it, and I exit immediately. Holding on blindly is pointless; once your capital is gone, there’s no way back.

The market is never short of opportunities; what’s lacking is the discipline to hold your bullets and wait. When your account grows, it’s not luck—it’s rules.

To avoid pitfalls and earn steadily, you must first understand the underlying logic. Taking that first step already puts you ahead of most people.