A scheme is proposed for protecting quantum states from both independent decoherence and cooperative decoherence. The scheme operates by pairing each qubit (two-state quantum system) with an ancilla qubit and by encoding the states of the qubits into the corresponding coherence-preserving states of the qubit-pairs. In this scheme, the amplitude damping (loss of energy) is prevented as well as the phase damping (dephasing) by a strategy called the free-Hamiltonian-elimination We further extend the scheme to include quantum gate operations and show that loss and decoherence during the gate operations can also be prevented.