In the journey of the crypto market, survival always comes first.

This circle is indeed full of temptations. Stories of getting rich overnight happen every day, but more often, people's stories start with full positions and end with liquidation. Someone goes all-in on a small coin, gets halved twice in a week, and their account is wiped out instantly. I've seen too many such cases, many of which are due to neglecting position management.

**Position sizing is the line between life and death**

Many treat trading as gambling, believing that returns determine everything. In reality, that's wrong. How long your account can survive and how many fluctuations it can endure are all determined by position control.

My core rule is simple: never risk more than 10% of total funds on a single trade. Even if you are bullish on a certain asset, at most 20% during the most aggressive times. Full position? That's not a trading strategy; that's risking your life.

How to operate specifically? Suppose you have a $100,000 account. Spot a good opportunity, invest 5% ($5,000) to test the waters. If the market moves as expected, gradually increase your position. The benefit of this approach is obvious: the cost of a single mistake is controllable, and your account can go through enough trial-and-error cycles.

**Trading systems don't need to be complicated**

I simplify my trading approach into three principles:

Focus only on mainstream assets with top market caps and sufficient liquidity. Those small coins with all sorts of names and anonymous projects are not worth touching. I once followed the trend and bought some small coins early on, only to see them crash 90% in a week, nearly losing everything. Since then, I understood a truth: new coins without enough institutional backing and market depth have risk premiums that cannot be covered.

A simple and effective trading system is often more useful than complex technical analysis. The market changes, but the principles of survival never change.