Having navigated the crypto market for years, I’ve seen too many people treat trading as gambling and lose everything. But what I want to say is that the opportunities in the crypto space are really there; the key is that you understand the game rules. Turning 100,000 USDT into a million isn’t about luck or some black swan event, but about strictly following a few investment disciplines.

**Position Allocation: Command Your Money Like a Troop**

First, you need to understand a principle—stories of getting rich by going all-in are usually survivor bias. Those who truly survive in this market understand one word: division.

My allocation is as follows: 50% core position, fully invested in BTC and ETH. These two coins have global consensus backing them, so even if the market is terrible, they’re unlikely to go to zero. During a bull market, their gains might be modest, but in a bear market, they help you stop the bleeding. Long-term, they always trend upward.

Mobile units account for 30%, dedicated to swing trading and chasing hot spots. When mainstream coins break through key levels, jump in with a wave, make quick 3%-5% profits, then immediately exit—never fight the trend. This part handles short-term volatility, earning quick money while also risking losses.

Cash reserves account for 20%, always maintaining a certain amount of USDT liquidity. When others panic and sell during a crash, you still have bullets to pick up cheap chips at the bottom. This 20% may seem like it’s not making money sitting idle, but it’s actually accumulating opportunities.

Once your position allocation is set, the biggest gain is a stable mindset. No matter how crazy the market gets, you have a plan to respond.

**Stop-Loss Execution: Cut Through the Chaos Quickly**

No trader can always predict the right direction, but you can control how much you lose when wrong. That’s the purpose of stop-loss.

I set my single trade stop-loss at 5% of the principal. For example, if I have a 10,000 USDT position, once the floating loss reaches 500 USDT, I must cut the position—no hesitation. Many people can’t bear to do this, thinking maybe it will bounce back if they wait, but in the end, they risk turning a 5% loss into a 50% loss and losing everything.

Besides individual stop-losses, I also set a daily circuit breaker. If losses across multiple positions reach a certain percentage of total funds in one day, I stop trading for the rest of the day. This adds a firewall to prevent emotional decisions.

The hardest part of cutting losses is the mindset. But I use a counter-question: If you’re unwilling to lose 500 USDT, is it worth risking 50,000 USDT to hold on? Thinking this way makes it clear.

**Mindset Building: Treat Trading as a Profession**

The difference between gamblers and investors is here. Gamblers expect miracles; investors calculate probabilities. The same applies in the crypto market—those who stick to rules and aren’t disturbed by short-term volatility are often the final winners.

Whenever I feel the urge to break my rules, I remind myself—this position allocation and stop-loss are set after countless losses and lessons. There’s nothing more trustworthy.

When the crypto market rebounds, it’s easy to get envious seeing others making ten or twenty times returns. But as long as you’re alive, there’s still a chance. Many people who got wiped out on the mountain slope died because of a single all-in move. So ultimately, rules are your life insurance.