Who hasn't dreamed of turning 'five thousand into fifty thousand' in crypto? When I first rushed in with my newly issued half-month salary, I couldn't even tell the difference between top assets and niche tokens—seeing people in the group shout that 'XX coin is going to skyrocket' made me go all in, I chased after so-called 'hundred times potential' air tokens, and when a certain algorithmic stablecoin collapsed, I stubbornly held on, ultimately watching tens of thousands of principal shrink to enough for two cups of milk tea. Looking back now, the pitfalls I've stepped in and the money I've lost have turned out to be a 'survival manual' more useful than candlestick charts.
The principal is not a 'gamble', preserving it is 100 times more important than making quick money
The most common mistake beginners make is throwing 'money for daily living' into the market. My strict rule for all fans now is: only use 'spare money' that you can afford to lose to enter the market. For example, if your monthly salary is 8,000, the amount you invest each month must not exceed 800, after all, when the crypto market fluctuates, yesterday's 'profit' may turn into 'debt' today; you can't let trading affect the money for instant noodles, can you?
The other two life-saving rules must be ingrained in your DNA: first, a 5% stop-loss line is like a 'fuse'; if the short-term price falls below the 5-day moving average or the medium-term price falls below the 20-day moving average, exit directly; don’t think 'let's wait a bit for a rebound'—the market won't care about your feelings; second, divide your position into three parts, don’t put all your eggs in one basket: hold 30% of top assets long-term as a 'ballast', use 50% for swing trading to profit from price differences, and keep 20% as reserve funds, so even in extreme market conditions, you can catch your breath.
Don't argue with the trend; going with the flow is the 'secret to easy winning'.
In the early years, I always thought I was a 'bottom-fishing master', thinking a 5% drop was 'low enough' and doubling down on a 10% drop, only to find myself buying halfway up the mountain, turning myself into a 'guard on the mountaintop'. It wasn't until later that I understood one principle: in the crypto market, 'waiting for signals' is a thousand times more reliable than 'guessing bottoms'.
When the market is falling, even if it falls hard, do not enter blindly; wait for clear signals of stopping the decline and rising; when the market is rising, do not chase high positions, catching the pullback to buy low is the safer play. Here’s a key point: trading volume is a 'mirror of truth'; a breakout with increased volume at a low position indicates real capital has entered the market; conversely, a rise without volume is like 'water without a source', and it could flip at any time.
Don’t be greedy with technical indicators; three are enough to replace an 'indicator grocery store'.
Many beginners fill their screens with MACD, RSI, and KDJ right from the start, and as a result, too many indicators create confusion. Now, when I look at the charts, I focus on three core indicators: 15-minute candlesticks for buy and sell points, daily MACD for the big direction, and weekly Bollinger Bands for support and resistance. When these three indicators resonate, combined with volume, the success rate for entering the market can improve significantly.
If you are doing short-term trading, it becomes even simpler: focus on popular tracks + changes in volume, exit directly with a 15% profit or a 5% loss, don't fall in love with the battle. Short-term operations look at the average price line of 1-3 minute charts; if it breaks down, run; if it stands up, enter. Doing 'simple execution' well is more effective than blindly pondering 'advanced techniques'.
Use good tools to avoid detours, and beginners should not be 'wild players'.
The information asymmetry in the crypto market is equivalent to money; not knowing how to use tools is like 'walking blindfolded'. I share my daily 'three-piece set': use TradingView to draw support and resistance levels, and clearly observe market trends; follow Jin10 data for macro news, knowing about policy changes and major institutional movements early; use Glassnode to check on-chain capital movements, making it clear where the main funds are going. Additionally, to avoid pitfalls with air tokens, TokenSniffer can help you scan for risks, so don't be fooled by 'flashy' white papers anymore.
Finally, let me say something heartfelt: there is no 'holy grail' in the crypto market; staying alive allows you to wait for the chance to make money.
I have seen too many people come into the market with the dream of 'turning a few thousand into a fortune', only to turn trading cryptocurrencies into 'gambling on highs and lows'. In fact, the crypto market has never had a 'holy grail of easy money'; discipline is more important than skills, and staying alive is more important than making money. To establish a foothold in this market with a few thousand, the first step is not to look for a 'hundredfold coin', but to first enhance understanding—understand the basic logic of blockchain, grasp the value behind the assets, and do not mistake luck for strength.
After all, in this market, those who can smile while making money are not the ones who dare to gamble the most, but the ones who know how to 'save their lives'. Follow me, and every week I will expose an 'invisible pit' in the crypto market, teaching you to make money with your brain, not to gamble with your courage. Next time, let's talk about 'how to distinguish between real good news and fake news', after all, avoiding a pit once might be worth more than making money once!
