After years of navigating this market, I’ve come to understand a harsh truth — the crypto world’s biggest fear isn’t losing money, but making money without understanding how you did it.

Watching the market fluctuate up and down, my mindset has changed significantly compared to three years ago. During the 2022 downturn, I watched my account shrink in real-time, but I survived thanks to strict position management. What about those who used leverage? Most of them were forced out during that cycle.

Over the years, I’ve both gained and lost, and I’ve realized one thing: those who truly last in the market are never the smartest, but the most disciplined.

**Don’t Let the Uptrend Lead You by the Nose**

When the market starts rising, beginners can’t sit still, while seasoned traders tend to pause. Opportunities are always present, but your capital is only one set.

I have a friend who, in 2021, saw a certain coin’s price soaring and couldn’t resist — he bought in at 70 cents. The result? He got caught at the peak. I almost got tempted by the same trend myself, but in the end, I stuck to the principle of “not chasing highs,” and avoided a disaster.

Valuable opportunities are waiting to be discovered, not chased after. When a coin has already risen 500%, you’re probably not an early investor but someone coming in for the final boost.

**Position Management Is the Key to Survival**

I’ve seen too many people fall because of this. Going all-in on one trade, even if you’re right about the direction, can wipe you out with just a small pullback.

My current rules are very strict — no single trade exceeds 5% of total funds, and total holdings don’t surpass 20%. Using 10 parts of capital, each trade uses at most 1 part, with a maximum of 3 positions at a time.

Will this result in smaller gains? No. In the market, survival is more important than anything else.