Many beginners go through the crypto market multiple times, only to end up with losses. The fundamental reason is simple—only passive following the trend, without their own investment system. Why do some people profit while others lose on high-quality assets like $BNB? The difference lies in those who make money having built their own investment framework early on.

This framework isn't that complicated; it mainly consists of four parts:

**First: Choosing Coins**

Picking the wrong coin makes even the best strategies useless. How can you avoid trash projects? Look at three dimensions—

Technical strength is the top priority. Review the white paper, see if there’s genuine innovation, and don’t just copy others. Also, understand the team background, as it directly affects execution capability.

The application scenario must be real. Does it solve a real problem? Or is it just hype? This is the dividing line for a project’s fate.

On-chain data never lies. User numbers and trading volume on the blockchain can tell you whether the project has real popularity.

**Second: Managing Money Well**

This is the bottom line to avoid liquidation—

Only invest idle funds; 10%-20% of your disposable income is enough. Don’t touch the rest.

Diversification is smart. Categorize assets by risk level—core assets, potential assets, and risky assets—each occupying a portion. Don’t put all your eggs in one basket.

Position size should match risk. For relatively stable assets like $XRP, you can hold a larger position; for smaller coins, keep it light.

**Third: Controlling Risk**

Stop-loss and take-profit must be clear—

Core assets should be sold if they drop 20%-30%, potential assets at 30%-40%, and risky assets at 50%. Exit promptly, don’t hesitate.

Set take-profit targets in advance. When core assets increase by 50%-100%, lock in profits gradually; don’t wait for a skyrocket.

Regularly review your trades. Break down each operation—what went well, where you fell into traps. This way, you can become more stable over time.

**Fourth: Maintaining a Steady Mindset**

Mindset determines long-term gains—

Be rational first. Even with promising coins, do thorough research before investing. Never chase the market or panic sell—that’s the typical rookie mistake.

Investing is a marathon, not a sprint. The fantasy of getting rich overnight must be abandoned.

Most importantly, overcome human nature. Greed and fear can ruin the best plans. Learn to cut profits and losses decisively at the right moments—that’s what separates experts.

Building this investment system isn’t something that happens overnight; it requires continuous learning and practical experience. Don’t rush—take it step by step. Each experience brings you closer to steady profits.