As someone who has been in the cryptocurrency market in Guangzhou for 7 years, I have seen too many people rush into the market with dreams of "getting rich overnight," only to leave in despair with "devastated finances." I, on the other hand, went from a principal of 50,000 being wiped out by platform crashes and frequent liquidations, to now having a stable account in the eight-digit range, relying not on the so-called "luck of avoiding the 3・12 crash" — after all, I was drowning my sorrows in alcohol that day, purely by chance. What truly allowed me to survive and earn back my losses were the 4 ironclad rules of survival ingrained in my bones after stepping into all the pitfalls, as well as the clarity of constantly reviewing my trades.
The cryptocurrency circle is never short of legends of 'turning 2000 yuan into millions', but 99% of people die from 'blindly following trends' and 'hopeful thoughts'. I have seen too many people mistake a slow rise after a sharp drop for a reversal, rushing in only to be cut down by the market makers; I have also seen people chasing prices during high-volume surges, only to catch the last wave. In fact, the traps in the market have long concealed clear signals, but most people are blinded by desire.
These four iron rules are the hard-earned experiences I gained with real money, helping me understand and avoid 5 years of detours:
Sudden rises and slow declines hide tricks: A sudden increase of over 20% without volume support, followed by a slow decline, is likely a smoke screen set by the market makers. A true strong rise must either have sustained volume or decisive corrections; that kind of slow decline is essentially the market makers quietly unloading their positions, and decisively exiting is more important than anything else.
Sudden drops and slow rises are traps: The 'gentle rebound' after a flash crash is the most confusing. It seems to be recovering, but in reality, the market makers are using the rebound to gradually escape. Last year, a certain popular cryptocurrency suddenly crashed by 40%, then slowly rose for 10 consecutive days. Many thought 'the bottom-buying opportunity has arrived', but the price plummeted halfway through the rebound, and those who chased in were all trapped.
Top volume indicates authenticity: A high position with volume increasing does not necessarily mean a peak, but a high position with 'dead silence' must hide dangers. If a certain cryptocurrency rises near its historical high and the trading volume suddenly shrinks, even if the price is still slightly rising, one must be cautious—without funds supporting it, a crash could happen in the next second. I have avoided major crashes three times based on this.
Bottom volume indicates continuation: A single volume increase at the 'bottom' is likely a trap to lure buyers. Only a continuous 3-5 days of sustained volume with a steadily rising price is a true signal for market initiation. In the second half of last year, I captured a certain undervalued cryptocurrency based on this and held it for 3 months to profit 120%.
Many people ask me 'How much do I need to earn to escape the shadows of the past?' The answer is never a specific number. When I lost everything initially, I thought earning back 50,000 would set me free; later, I earned 1 million and wanted to gather 5 million; until now, I finally understand: truly 'moving on' means no longer being trapped by the fear of losses or blinded by the desire for profits—using strict rules to guide operations and revising direction through review.
The cryptocurrency circle is like a training ground, playing out the drama of 'heaven and hell' every day, but it is never a casino—casinos rely on luck, while this relies on knowledge and mindset. Opportunities are always there, and the chances missed today will still be there tomorrow; but once you misstep, you may never have the capital to turn things around.
I have proven over 7 years that ordinary people can make money in the cryptocurrency circle, not relying on luck or insider information, but on 'not being greedy, not panicking, and not being lazy': not being greedy for short-term profits, not panicking during sudden market movements, and not being lazy in reviewing and summarizing. I will continue to share my review logs, market judgment logic, and how to avoid those seemingly attractive traps. Follow the veterans, avoid pitfalls, eat well, and stay tuned for the next time when I will explain 'how to judge true rebounds and false breakouts', so we can steadily make money in the crypto market together.
