Many people ask me how to survive in the crypto market. My answer is straightforward—never gamble with money you can't afford to lose. This sounds simple, but behind it are painful lessons.

When I first entered the crypto space, I was also brainwashed by stories of "getting rich overnight." I thought I had found the secret to wealth, but I ended up losing more than half of my initial capital. Fortunately, I recognized the reality in time, adjusted my approach, and managed to stand firm in this market. Today, I want to share some trading notes from these years to help new friends understand the pitfalls of the five common strategies in the crypto world.

Remember one thing: there are no shortcuts in crypto. Learning to "not lose money" is the first step.

**Spot Trading: The Best Entry-Level Choice for Beginners**

What is spot trading? Simply put, it’s directly buying and selling mainstream cryptocurrencies like Bitcoin and Ethereum, buying low and selling high to profit from the price difference. I highly recommend beginners start here.

The reason is very straightforward—simple operational logic. If you believe Bitcoin will rise, buy during dips and sell after the rebound. No need to worry about leverage or study complex contracts; just focus on the price trend.

But even with spot trading, there are a few ironclad rules to follow:

**Position Allocation**: Your holdings of Bitcoin and Ethereum should account for over 70% of your total position. This is your "lifesaver" fund, and you must hold onto it. As for those obscure altcoins? There’s a 99% chance they are pump-and-dump schemes. Once they collapse, they’re basically worthless—stay away.

**Capital Management**: Never invest more than 5% of your liquid funds on your first entry. If your monthly income is 10,000 yuan, start by risking 500 yuan to feel the real rhythm of market fluctuations. Your goal is to learn, not to go all-in on a gamble.

**Risk Control**: My personal rule is to cut losses and exit if the position drops 15% in floating loss. Many people hold on unwillingly when caught in a loss, only to deepen their position and finally be forced to capitulate at the bottom. Instead, it’s better to accept the loss early and keep your powder dry for the next opportunity.

The advantage of spot trading is that the risk is relatively controllable, though the profit cycle is longer. But for newcomers to crypto assets, this pace can actually be an advantage—giving you enough time to understand the market and build your trading mindset.

**From the perspective of an experienced trader**, I’ve seen too many beginners crash because they act too hastily. Those claiming "quick wealth" methods are almost always traps. The ones who truly make money are often those who can be patient, conduct thorough research, and strictly adhere to stop-loss rules.

Opportunities in the crypto space are plentiful, but only if you’re still active in the game. Valuing your principal is also valuing your qualification to continue participating in this market.