There is a senior in Fujian, 45 years old this year. I have been in the crypto circle with him for a full 10 years.

Ten years ago, he started with a principal of 8,000 yuan. No background, no connections, no advantages whatsoever, yet he managed to grow his account to over 78 million through a very simple trading logic. But when you meet him, you wouldn't feel the ostentation of wealth at all—his six properties are laid out very modestly: a minimalist self-occupied house, two for his parents, and the remaining three in prime locations rented out as shops. His passive income each month is enough for an ordinary person to work hard for a year, fully achieving cash flow freedom.

In these 10 years, he has never relied on insider information, never gambled on short-term trades, let alone relied on luck. All his wealth accumulation ultimately comes down to obsessively following six fundamental rules. They are more effective than any complex indicator:

**First: A rapid rise followed by a slow pullback indicates funds are lurking.** A short-term increase of over 30%, but the correction stays within 15%—this is not a sign of topping out, but a sign that the main players are accumulating during the oscillation. The key is to stay steady and not be shaken out by small fluctuations.

**Second: A sharp decline followed by a weak rebound indicates funds are fleeing.** A single-day drop of over 20%, but the rebound doesn’t even reach half of that decline—this is very likely main players liquidating, and trying to buy the bottom at this point is like catching a flying knife with your bare hands, with an over 80% chance of being trapped.

**Third: High volume at a top does not mean a peak.** Continuous high volume in the top zone might actually be a sprint towards the rally; the real danger signal is a high-volume sideways consolidation at high levels—that’s a sign of funds withdrawing. Don’t fall into the trap of thinking “volume up equals a top.”

**Fourth: A single large volume at the bottom is a trap for false signals.** A sudden surge in volume during a rebound is mostly short-term speculation. The real bottom signal is three or more consecutive gentle volume increases, each accompanied by slight price rises—that’s a more reliable rhythm.

**Fifth: The core of trading cryptocurrencies is a game of human psychology, not candlestick analysis.** No matter how sophisticated the technical indicators, they ultimately return to market sentiment. How volume changes and the rhythm of turnover reveal the true intentions of funds.

**Sixth: “Inaction” is the key to longevity.** The most exhausting thing in the crypto world isn’t catching the trend, but holding cash—being desireless makes you strong. Not reacting to rises or falls, not obsessing over short-term gains or losses, allows you to wait for the real trend opportunities.

Applying this logic to spot and futures trading of Bitcoin and Ethereum, the results are evident. From followers to strategists, from retail investors to winners, it all boils down to a deep understanding of these rules.