Over the past few years in the crypto space, I’ve gradually noticed an interesting phenomenon—those who make the most stable profits are often not the ones staring at charts every day.

Crypto traders around me generally fall into two categories. One group never leaves their phones, constantly chatting in groups, chasing hot topics, and frequently opening positions. Over a year, they end up paying more in fees than their principal, and their accounts keep shrinking. The other group mostly watches and only makes 1-2 trades per month when the time is right. As a result, their annualized returns far surpass others by a wide margin.

What’s going on here?

**Why Frequent Trading Doesn’t Make Money**

Simply put, people who trade daily are actually using their actions to ease anxiety. The market loves to satisfy various urges—during volatile periods, over 70% of short-term signals are false signals, easily leading to repeated setbacks. You enter a trade, get stopped out, get anxious, chase the market, and end up getting liquidated. This cycle is especially easy to trap people.

Even more painful is the cost issue. High leverage combined with high frequency means slippage and fees act like invisible vampires, continuously eroding your principal. Someone calculated that the costs of frequent trading over a year are enough to wipe out a significant portion of gains.

Another often overlooked point is that about 80% of crypto market profits actually come from the remaining 20% of trending moves. Frequent traders tend to lose their principal during sideways consolidation, and when a big trend finally arrives, they have no bullets left to chase it. Conversely, those who can sit on the sidelines and conserve their firepower can wait for the right moment to "strike decisively," fully riding the main upward wave.

**The Logic Behind Making Money with Less Activity**

There are three core reasons: First, less emotional interference. Not trading means less quick feedback that stimulates the brain, making it easier not to be confused by market noise. Second, the ability to catch key trends. Patience means you won’t be worn down by small fluctuations and can focus on the big picture. Third, irrational costs are significantly reduced—fewer trades mean lower fees and less slippage.

**How to Achieve "Less Activity, More Profit"**

Step one: replace impulse with rules. Set strict conditions for opening trades, such as: a daily candle breaking through a key level, with volume increasing by over 30%, both conditions must be met. If not, force yourself to stay out of the market, even if the opportunity looks tempting. It sounds simple, but in reality, very few people follow through.

Step two: take profits and withdraw principal promptly. Whenever a trade gains over 20%, take out at least 50% of the principal. The remaining 50% can be used to chase further gains. This approach protects your profits while keeping firepower for the next move.

Step three: enforce rest periods. After three consecutive days of trading, the fourth day must be a no-trade day—completely out of the market. This is to prevent "revenge trading"—the mindset of trying to recover losses by overtrading, which is deadly. A day off helps you cool down, reassess the market, and avoid impulsive decisions.

**Final Words**

The hardest part in crypto isn’t having the vision to spot opportunities, but having the discipline to give up on unprofitable ones. When you shift from fearing missing out to fearing disorderly trading, you truly understand this market. Less is more—this principle is especially true in crypto trading.