After years in the crypto world, I've stepped on enough pitfalls to circle the Earth three times. Today, I want to share the survival rules I've summarized—three things to absolutely avoid and six ironclad trading principles.

First, let's talk about the three major pitfalls that basically warm up the market when you fall into them:

1. Chasing highs and selling lows. I've seen too many people do this—buying desperately when prices skyrocket, then panicking and cutting losses when they fall. The data is right there; nine out of ten retail investors lose money this way. The right time to act is often when the market is so quiet you don't even want to open your trading app.

2. Going all-in on a single coin. Putting all your chips into one asset? That's no different than gambling in Macau. My habit is to always keep 30% cash on hand. That way, when there's a sharp decline, you have bullets to add to your position instead of just staring blankly.

3. Fully loaded position. There are plenty of opportunities in crypto, but when your entire position is locked in, even the best opportunities are out of reach. Proper position management is truly the dividing line between beginners and seasoned traders.

Now, let's discuss six practical observation points:

1. Consolidation phases will always be broken. After a prolonged sideways range at high levels, false breakouts are routine to lure in new buyers; after a long bottoming process at low levels, a sudden sharp drop can occur. Don’t move your hands before confirming the direction.

2. Minimize moves during sideways trading. Statistics show that most liquidations happen in choppy markets. Those who frequently open and close contracts tend to pay hefty tuition fees.

3. Large bearish candles can be opportunities. When a candle forms a terrifying bearish line, it often signifies the most panic-stricken moment, and also the lowest cost entry.

4. The speed of decline determines the strength of the rebound. Slow, gradual declines usually lead to weak rebounds; but waterfall-style crashes often lead to strong recoveries. This rule has been tested repeatedly.

5. Pyramid building. This classic strategy from traditional finance works well in crypto too. Add 10% to your position each time the price drops 10%, lowering your average cost significantly.

6. Focus on mainstream coins. BTC, ETH, SOL—these have good liquidity and depth, making them much more reliable than small altcoins.

Ultimately, making money in crypto isn’t about luck but discipline and patience. The most seemingly foolish methods—controlling position size, waiting for opportunities, thinking contrarily—are often the most effective. The market is always there; there’s no need to rush and put all your money in at once. As long as the green mountains remain, you can continue playing in this market.