In the cryptocurrency market, losing all your principal is certainly frightening, but there's a more frustrating scenario—making a lot of money, only to lose it all in the end due to greed. This is not an isolated case but a trap that most traders fall into.

Many people in the crypto space have experienced moments like this: a certain coin suddenly surges, account unrealized gains double, heartbeat accelerates, and instinctively they want to bet on the next wave. As a result, the market turns, the unrealized gains from yesterday vanish instantly, and they end up losing everything. What's behind this? It’s simply a failure to learn when to stop.

What is the biggest trap in the crypto world? It’s not the market itself, but your insufficient understanding of your own trading. When you make your first profit, many overlook a crucial detail—taking profits in time.

How to avoid this deadly mistake? Here are three key rules:

**First, protect your principal at the first profit.** No matter how much you earn initially, the first step is to withdraw your original capital. The benefit of doing this is that every subsequent trade is made using profits, greatly reducing psychological pressure. Even if you fail, you only lose the incremental gains; your principal remains safe forever.

**Second, the higher the gains, the more conservative you should be.** When unrealized profits reach your target, you should immediately adjust your stop-loss to lock in the profits. Many make the mistake of becoming more aggressive as they earn more, as if their brains are hijacked by short-term gains. True experts start reducing their positions and tightening stops once profits hit the target, leaving no room for market backlash.

**Third, only follow clear trends and refuse to trade frequently.** Wealth in the crypto market often comes from major trends, not intraday fluctuations. When market signals are unclear, the smartest choice is to stay on the sidelines and wait. Better to miss a wave than to make a wrong trade—this trade-off can change your entire trading career.

In the crypto asset market, making money and preserving money are two completely different skills. The gap in wealth often isn’t about who catches more opportunities but about who can hold onto the money they’ve already earned. This requires vision, patience, and most importantly, calm self-control. True doubling of wealth doesn’t come from going all-in once, but from protecting profits steadily each time, and having enough ammunition for the next opportunity.

If you’re still exploring in the crypto space, start with these three rules. Earn steadily, cut losses calmly—perhaps this is the secret to surviving in a volatile market.