From 50,000 to 7 million: The cryptocurrency trading rules for getting rich by a former bank president, understand three out of six to become a market expert.

After years of struggling in the cryptocurrency trading circle, from initially investing 50,000 to now having an account balance exceeding 7 million, I have encountered countless pitfalls and paid a considerable amount in tuition. Today, I will share six iron rules of cryptocurrency trading, each one backed by real-life experience worth its weight in gold—understanding one can help you avoid six months of detours; following three can allow you to outpace 90% of the market's trend-following retail investors.

1. Timing for buying and selling: Accurately dissecting the tactics of "wash trading" and "pump and dump".

1. Quick rises and slow falls should be held steadily, quick rises and quick falls should be exited quickly.
In the cryptocurrency trading world, "rapid increases" are common, but the subsequent trends can vary widely, and the response methods are drastically different. If the coin price rises quickly and then gradually falls back, don't rush to panic sell—this is mostly a tactic used by market makers to wash out the retail investors' patience with minor downturns. Once the less determined investors exit the market, it often triggers a genuine upward trend. However, if a rapid increase is immediately followed by a "sharp decrease," with a drop of more than 10% within a few minutes, you must exit immediately. This is a typical "pump and dump trap," where the market makers push the price up to sell off quickly before crashing it down. Being a moment late could leave you stuck at a high position.

2. Don't catch the falling knife during a sharp drop, avoid the pit of "false rebound".
"After dropping so much, shouldn't it be time for a rebound?" This is the starting point for many people who get trapped while trying to buy the dip. I once thought "the floor price has been reached" and rushed in after the price of the coin halved in half a day, only to encounter a "slow rebound" market—where the price rises a little bit every day, seemingly recovering, but once I increased my position, I found that the rebound came to a sudden halt, followed by another round of decline. Later I understood that a slow rebound after a sharp drop is mostly the operators "pulling up while offloading," using small rebounds to lure retail investors to take over, and once the chips have been sufficiently offloaded, their true intentions will be revealed. If you really want to buy the dip, you need to wait for the price to stabilize at a key support level and show clear reversal signals before acting; blindly entering the market will only make you a "bag holder."

2. Volume Analysis: Understanding "trading volume" is key to knowing whether the market is real or fake.

1. High positions determine life and death based on volume; high positions without volume are the most dangerous.
Many people are reluctant to leave when the coin price is high, but they overlook the key signal of "trading volume." I previously held a coin that, when it rose to a high level, had very active trading volume in the earlier stages, so I continued to hold it and later made an additional 30%. However, in another similar situation, the trading volume suddenly plummeted at the high point, and while the candlestick chart looked stable, the market seemed to have "lost its popularity." I didn't exit in time and ended up losing 40% of my principal in three days. At high levels, trading volume is the barometer of "buying funds": continuous volume increase indicates that there are still people willing to enter the market, and the trend may continue; once the volume dries up and no one is buying, the price can easily plunge, and at this point, one must decisively exit.

2. Observe the volume at the bottom to identify opportunities; a moderate increase in volume is the real signal.
"Buying at the bottom" is an obsession for many, but bottom markets are the easiest to fall into traps. If a sudden "huge volume" appears at the bottom, such as a single day's trading volume being more than ten times the previous amount, don't rush in—this is likely a deliberate market manipulation by big players to create the illusion of "money entering the market," luring retail investors to take over, and it is highly probable that the price will drop further afterward. The real bottom opportunity is characterized by "gentle volume increase": trading volume gradually increases, and prices steadily recover, indicating that funds are quietly positioning themselves, not short-term speculation; such market conditions are worth seizing.

3. Core Concept: As long as you adhere to these two principles, you won't end up as a "leek" no matter how bad the situation gets.

1. Volume precedes price; trading volume is more reliable than price.
Many people engage in Cryptocurrency Trading by only looking at the K-line fluctuations, unaware that "prices can be misleading, but trading volume cannot deceive anyone." The market makers can manipulate short-term prices by pushing prices up or crashing them, but the trading volume reflects the real trading sentiment—if the price rises while the trading volume does not keep up, it is a "false rise," and the market is unlikely to go far; if the price drops while the trading volume increases, it indicates that panic selling is occurring, and further declines may follow. Remember: when the volume changes, the price trend will change. Understanding trading volume is essential to grasping the essence of the market.

2. Refusing to follow the trend and having your own judgment is the foundation of survival.
In the cryptocurrency world, there are "positive news" and "recommended coins" every day, but those who follow this information to trade cryptocurrencies have a nine out of ten chance of losing money. I also once listened to "insider news" to buy coins in the early days, but ended up losing a lot. Later, I understood: the market is never short of opportunities; what it lacks is the ability to make independent judgments. No matter how good what others say is, it is better to learn to analyze the market yourself—understand the volume, distinguish between accumulation and distribution, judge support and resistance levels, and establish your own trading system. Only by being able to make independent decisions and not being swayed by market emotions can one make money in the cryptocurrency world in the long run.

In fact, Cryptocurrency Trading is not about luck, but about insight into the psychology of people — no matter how complicated the schemes of the market makers are, they will leave traces through volume and trends; no matter how crazy the price fluctuations are, they cannot escape the rule of "volume precedes price." If you can thoroughly understand these six iron rules, you may not be able to go from 50,000 to 7 million like I did, but at least you can avoid most pitfalls and become one of the few people in the crypto space who can make stable profits.