**Part One: Principal Always Comes First**

In the cold winter of 2018, I watched my account shrink from 800,000 to 180,000 right before my eyes. At that moment, I really wanted to smash my keyboard. But it was this huge loss that made me realize a fundamental truth—surviving in the crypto market is the prerequisite for everything.

Many newcomers want to "go all-in and turn things around" as soon as they enter, but from that lesson, I summarized two strict rules that I haven't broken to this day:

**Single position should not exceed 10% of total funds.** Even seemingly foolproof opportunities shouldn't be fully invested. Why? Because the market will always hit you with surprises you didn't expect. Contract liquidation, project zeroing out, regulatory risks—these are not stories; they are happening in reality.

**Stop-loss must be set in advance.** If spot drops 15%, cut immediately. Set your hard stop-loss before opening a contract. This isn't giving up; it's reserving chips to stay alive.

In 2021, during the surge of the metaverse concept, a friend invited me to invest in a "hundredfold project." I looked through the white paper—team completely anonymous, no code audit, a bunch of empty talk. In the end, I only put in 20,000 yuan to test the waters, just as a game token. Later, when the coin rose 50%, I immediately withdrew the principal and let the profits grow on their own. Eventually, the coin fell 90%, but I ended up earning enough for a month's worth of bubble tea.

**The core logic is simple: opportunities are everywhere every day, but if you lose your principal, you can't even play the game.**

**Part Two: Only Make Money on What You Understand**

I've seen people use their retirement funds to buy coins they can't even understand the white paper of. When asked why, they say, "The group leader said it will rise." If such people don't lose money, where is justice?

My standard for screening coins is one set—"Three Passes Theory":

**Technology Pass.** Does the white paper's logic hold together? Has the code been audited? (Reports from top auditing firms like Certik are a must read.) Does the project have a concrete product form, or is it just storytelling? It's okay if you don't understand technical details, but you must be able to tell if the team is serious or just fooling around.

**Team Pass.** Are the core members real-name verified? Do they have a background in blockchain? I completely avoid anonymous teams because if problems arise, no one can be found. I prefer teams that are publicly visible, have backing from reputable companies, and have traceable social media histories—at least this way, there's some credibility risk restraint.

**Ecosystem Pass.** What is this coin's position within its ecosystem? Is the usage scenario a real demand or just self-sustaining? Is there genuine trading volume and user base? Or is it just hype and marketing stacking market cap?

Only if all three passes are met is it worth considering; if one fails, I pass directly. This filtering may reduce investment opportunities by 50%, but it makes me sleep much better at night.

No matter how many opportunities there are in the crypto market, if you can't afford to lose, don't gamble. Stay safe and alive, and you'll have the chance for the next round.