Having navigated the crypto markets for years, I have experienced several painful liquidations and witnessed moments of exponential asset growth. Instead of boasting about vague predictions, it’s better to summarize the most practical trading experiences from these six years—these insights, earned with real money, may be more valuable than three years of blind trading.

**Small Capital Should Operate Conservatively**

Only have less than 100,000 in funds? Then you need to be more cautious. The goal for a year is simple: lock in 1-2 main upward waves, break even and then exit. Don’t be fooled by professional traders’ intraday operations; they can monitor the market 24/7, but you can’t. Trading fees, time costs, psychological exhaustion—these invisible factors can grind your principal down to four digits. Real profit opportunities come from patience, not chasing highs.

**The Value of Demo Trading Is Seriously Underestimated**

Profits earned in a bull market through luck can be lost in a bear market in minutes. There’s nothing shameful about practicing on a demo account before using real funds. I spent three months in a simulated environment early on, which helped me understand whether I was suited for spot trading or short-term trading, and what kind of volatility would keep me awake at night. Without this awareness, money earned by luck will eventually be lost.

**Major Positive News Is Often the Most Dangerous**

When a project releases big news, don’t be greedy. If you don’t exit promptly that day, the next day is usually the last chance to escape, often with a gap-up opening. The market’s specialty is distributing chips amid cheers; I’ve fallen for this trap—holding through the positive news only to see profits evaporate by 30%. The moment the news is announced, it’s often the top of the price.

**Risk Awareness Before Major Holidays**

Start adjusting your positions one week before major holidays. The details may vary historically, but the overall rhythm is similar. Every year around National Day and Chinese New Year, there’s likely a wave of sell-offs. Instead of betting on that 0.1% unlikely event, it’s better to listen to the market’s rhythm. The crypto community most despises the gambler mentality of “I just think it won’t fall.”

**Medium-Long Term Holdings Also Require Active Management**

Holding coins doesn’t mean lying flat. An effective strategy is rolling operations—always keep 30% cash reserves. The benefit of this approach is that when the market shows clear signs of accumulation, you have ammunition; when prices surge excessively, you have room to pivot. This is a balanced approach that allows participation in long-term upward trends without being completely trapped by short-term volatility.