The wealth creation wave in 2017 came and went like the tide. Surviving that madness, my biggest gain was not how much money I made, but understanding what true Risk Management is.

I still remember how hot the crypto market was back then. I gradually accumulated ADA when it was at $0.03, and no one expected it to surge to $1.2 three months later. The numbers in my account were growing every day, and it felt like counting money in a dream—my original goal (the down payment for a house) was just about to be achieved.

When people are greedy, they often fail to see reality clearly. I didn't sell at the peak, but instead continued to increase my position. As a result, ADA began to plummet, dropping from the high point to 0.2 dollars in a cliff-like decline, and 80% of the profits in my account evaporated instantly. Those dreams that were once within reach just went down the drain like that.

This experience led me to a harsh conclusion: in this market, being able to buy does not mean you will win. True experts are never famous for bottom-fishing; rather, they survive the longest by accurately escaping the peaks.

**Stop-loss is not passive, it's survival**

In the years I've spent navigating the crypto space, I've summarized a hard rule: the maximum loss for any single transaction is 2% of the total capital. This isn't just motivational talk; each percentage represents a real monetary cost.

Before each entry, I immediately set a stop-loss line at -10%. Many people think this is too conservative, but my analogy is: the purpose of buckling up in a trade is never to expect an accident, but to survive and continue driving when something really goes wrong.

I used a three-pronged strategy in execution:

The first type is technical stop-loss. The red line for me is 2%-3% below the key support level. Once the price breaks below, it indicates that the previous trend may have reversed, and it is meaningless to continue holding on.

The second method is amount stop-loss. For any reason, the loss on a single trade must not exceed 2% of the principal. This is the most basic discipline of professional traders and a golden rule followed by the longest surviving traders.

The third method is time stop-loss. If the market hasn't moved as expected 24 hours after entering, it's time to consider admitting defeat and exiting. Time cost is also a cost; don't go against the market.

This system sounds very restrained, but it is precisely this restraint that has allowed me to survive longer than many others in the subsequent rounds of major market fluctuations. It's okay to earn a little less, as long as I can survive to the next wave of opportunities, there will always be chances.

In an era where U.S. economic data fluctuates and market sentiment frequently shifts, the importance of Risk Management will only become more pronounced. There is no perfect entry point, but there must be a reasonable stop-loss price. Once you learn this, you have already outperformed most people in the crypto space.