From the initial losses due to insomnia to now earning stable monthly income, this experience has taught me a principle—trading cryptocurrencies relies not on talent or luck, but on a simple yet truly executable method. Today, I will break down this logic.

**Level One: Protect Your Principal as the Best Way to Make Money**

No matter how clever your strategy is, a single liquidation can wipe everything out. This is not scare tactics, but lessons learned from countless people.

How to avoid it? The key is position sizing—if you have 100,000 in capital, only use 10,000 per trade to test, keeping total position exposure within 20%. This is not conservative; it’s about surviving longer. Then set a strict rule: exit immediately if a single trade loses 2%, no entangling, no gambling. Leverage is something beginners should avoid altogether; even experienced traders should keep individual trades under 10%. Adjustments like this can help you avoid most liquidation traps.

**Level Two: Precise Entry, Don’t Fool Around**

The secret to making money on exchanges is quite simple—doing more of what works and less of what doesn’t. Many people make a dozen trades daily, but in reality, they are just paying fees.

What to do? First, choose a direction—either only long or only short, and avoid switching strategies frequently. Also, digitize your stop-loss and take-profit points: set a 3% stop-loss, 5% take-profit in advance, so you won’t be driven by emotions when executing. Regarding trading frequency, one observation is that the first 1-2 trades of the day tend to be the highest quality; more than 3 trades, and it’s basically a probability game. For popular coins like $TNSR , stick to this rhythm even more strictly.

**Level Three: This Is How People Fall Into Traps**

90% of beginners’ collapses happen in these areas. Replenishing after a decline? Each addition gets you closer to liquidation. Making trades without logic? Fees will eat up most of your profits. The most deadly is “floating gains”—thinking there’s no risk until you realize your account is wiped out because you didn’t lock in profits and kept hoping for more gains.

**Comparison Shows the Difference**

Two accounts with 100,000 each: one uses full leverage and adds on dips, ending in liquidation. The other? Starts with a 20,000 base, follows mechanical 3% stop-loss and 5% take-profit, executes two carefully selected trades weekly, earning 8% monthly, and with compound interest, the annualized return exceeds 150%. Numbers speak for themselves.

**Final Reminder**

The mantra of experts is just eight words—use idle funds, stay disciplined, trade unilaterally; no all-in, no holding through, no two-timing. Contract trading is not a casino; those who gamble with living expenses will eventually be out. The longest-lasting and most stable earners are those who first protect their principal, then let time and compound interest help them make big money.