Having immersed myself in this market for over a decade, I’ve noticed a phenomenon—stories of sudden wealth are everywhere, but very few manage to survive and exit alive. Some treat the crypto world as a casino, others as a battlefield, but I increasingly realize that fundamentally, this is a survival game. Only those who stay alive have the right to talk about profits.

Today, I want to share a real case. A trader I know started with $4,000 and, over eight years, grew it to $69 million. Some attribute this to luck, but I know very well that his secret boils down to three rules—so simple they’re almost unbelievable, yet effective enough to be frightening. These rules have saved him, and they’ve also saved me.

**Rule 1: Never Risk More Than Half Your Position**

Opportunities are everywhere in the market, but your principal is only one. I’ve seen too many stories of people going all-in—rising happily, then crashing out when prices fall. How crazy is the crypto world? Doubling in an hour is common, zeroing out in ten minutes isn’t rare either. Position control is your safety net; losing a little isn’t a big deal, but a liquidation means permanent exit.

His execution standards are strict: for each trade, never risk more than 10% of total capital; overall holdings always stay below 50%. Why do this? Because having ammunition left allows you to survive black swan events.

During the Luna collapse in 2022, many people were wiped out because they were fully invested. He? Because his positions were diversified, he not only preserved his principal but also had the capacity to add to positions at low points, catching the rebound later. That’s the value of discipline.

My feeling is: the crypto world is never short of opportunities; what’s lacking is the capital to survive until the next opportunity.

**Rule 2: Follow the Trend, Don’t Fight the Market**

Many traders develop emotional attachments—holding onto a coin stubbornly even when technicals break down and news turns negative, insisting on “long-term value investment.”

But the reality is: trends are the most truthful reflection of the market. Trading with the trend versus against it yields vastly different long-term returns. Your emotions and predictions can’t change the market’s direction—they only help you lose everything.

His methodology is simple: when an uptrend is clear, hold or add; when a downtrend signals, reduce or exit immediately. It’s not about perfectly catching the bottom or top, but about reacting at key trend change points.

During the late 2023 to early 2024 rally, many were still debating whether it was the bottom to buy in. He had already entered early based on on-chain data and market structure. It’s not that he’s a great predictor, but that he respects the trend and executes with discipline.

**Rule 3: Diversify Your Portfolio, Don’t Bet on a Single Coin**

There’s an enticing idea: find the next 100x coin, go all-in, and get rich overnight. The reality is, most who go all-in end up wiped out.

His strategy involves a layered structure of core holdings plus allocated positions. For example, with a total of 50% of the portfolio, maybe 30% is in mainstream coins like BTC/ETH, 15% in promising mid-cap coins, and 5% in experimental small coins. What’s the benefit? It prevents total collapse if one coin crashes, while still participating in growth opportunities.

Recently, with the surge in privacy coins, he had already allocated based on fundamentals across different tokens. He didn’t go all-in on one, but he also didn’t miss this wave entirely. That’s the power of diversification.

**Final Words**

The crypto world isn’t a myth, nor is it purely luck. Those who survive long enough and earn enough all treat risk management as their first lesson. Position discipline, trend judgment, diversification—these three may seem simple and lacking technical complexity, but it’s precisely these fundamentals that determine how long you can survive.

In this market, the highest return isn’t a hundredfold gain, but the ability to survive until the next bull run.