Many people have been through the ups and downs in the crypto market, but few actually make money. What's the difference? It often comes down to these trading principles that most people overlook.

**Lock in profits and stop-losses in advance.** This sounds basic, but it's the ultimate test of human nature to execute. Know where you'll exit before entering a trade. Once you start trading, don’t change your mind—changing your mind almost always leads to poor outcomes.

**Calculate the risk-to-reward ratio carefully.** Every trade should ask yourself: if I lose everything on this trade, am I okay with that? If the answer is no, then don’t take the trade. Some trades look tempting with high returns, but the risks far outweigh the potential rewards. We pass on those.

**Use small losses to pursue big profits—that’s correct. Conversely, chasing huge gains with big losses is a death wish.** Many traders operate the opposite—using large losses to gamble on an uncertain surge. This is a gamble against probability; in the long run, no one can afford to lose.

**Don’t blindly trust the average price.** Averaging costs sounds comfortable, but it can turn a losing trade into a bottomless pit.

**Understanding the crypto market requires at least two cycles.** In the first cycle, you’ll lose money and learn; in the second, you’ll gradually protect your profits. That’s the price paid for tuition.

**Regarding leverage—most people would rather be liquidated than close their positions.** When the market moves against them, they stare at the screen, betting on a reversal. You know how crazy crypto volatility can be. Instead of using leverage to gamble, focus on maintaining solid spot positions. That’s the way to survive the longest.

These are not secrets; many people either haven’t heard of them or have heard but never truly implement them.