The cryptocurrency market has many pitfalls, and newcomers perish quickly, not because of bad luck, but because they haven't remembered the 'rules for survival'— if you understand these three sentences today, you can reduce your losses by 80%. If you don't understand, you're likely to become 'liquidity' harvested by institutions!
Newcomers who just entered the market, nine out of ten fall into 'greed' and 'blindness': either they bet everything on altcoins chasing the rise, or they use high leverage to gamble on contracts, and in the end, their principal is wiped out without knowing why they fell into the pit. I've been in the cryptocurrency market for 8 years and have seen too many tragedies like this: last year, a young man just graduated, entered the market with a principal of 5000U, and listened to a 'big V' hype some shitcoin saying it would 'tenfold by the end of the month', directly going all-in on DEX, and three days later the project team ran away, the token went to zero, and 5000U was left with only 200U for gas fees; there was also a girl who saw BTC break above its previous high, got impulsive and added 10 times leverage to go long, but in the middle of the night encountered a major player's spike, the K-line directly broke key support, and her long position was forcibly liquidated. She cried and asked me, 'Is there still a chance to break even?'
These tragedies could have been avoided, today I will say three 'life-saving words' to beginners, each containing the core logic to avoid pitfalls:
First sentence: Don't use more than 3x leverage, and never go all in; a single position shouldn't exceed 30%. This is the 'lifeline' in the crypto world. Beginners often think 'with little capital, I must go heavy,' but don’t realize leverage is a 'risk amplifier'— it can double your profits when you win, but can also lead to instant liquidation when you lose. I have an old fan in my community who started with 5,000 U, and each operation only opened a 20% position; if he was right, he rolled over the position to amplify profits, and if wrong, he strictly cut losses, able to withstand even sharp market drops, steadily rolling up to 30,000 U over a year. In contrast, those beginners using 10x or 20x leverage, 90% can't last 3 months before being forcibly liquidated, leaving no chance for recovery.
Second sentence: Only invest in mainstream coins for spot trading, avoid 'high yield' shitcoins and air coins. Beginners are most easily deceived by the hype of '10x returns, 100x flips,' but don’t realize that those altcoins without technology or grounding are 99% tools for project teams to control the market and harvest profits. In 2024, there is an altcoin called 'XX Chain' that promoted '5x returns by the end of the month' through 'ecological empowerment + celebrity endorsements,' countless beginners rushed in to buy on CEX, only to see it plummet 99% within 3 days, as the project team ran off with the money, leaving retail investors stranded at the top. However, mainstream coins like BTC and ETH have sufficient market capitalization and liquidity support, even in a bear market drop, they can rise again in a bull market. In 2022, BTC dropped from 60,000 to 15,000, and in 2023 it rose back to 40,000. As long as you hold the spot, you won't be completely wiped out, which is the safety of mainstream coins.
Third sentence: Don't chase the rise or panic sell; learn to 'wait for trends, wait for pullbacks,' and reject FOMO emotions. Beginners love to 'chase the market,' seeing a coin surge and FOMO (fear of missing out) into buying high, and panicking to cut losses when it drops, falling right into the trap of the main force's 'bait and switch.' In 2023, BTC rose from 30,000 to 40,000, many beginners chased the rise at 38,000, only to encounter a daily level pullback, the K line breaking below the EMA30 moving average, and then cutting losses at 32,000, losing 20% back and forth; meanwhile, I advised fans to build positions in batches around 30,000, taking profits as it approached the golden ratio resistance at 38,000, making a steady profit of 27%. The core of making money in the crypto world is 'buy low and sell high,' not 'chasing rises and panic selling.' Learning to wait for a pullback to key support levels before entering is 10 times better than random trading.
These three sentences seem simple, but they contain my 8 years of practical experience. Newcomers to the space shouldn't think about 'getting rich overnight,' but first learn to 'survive'— if you can avoid liquidation, scams, and the main force's harvesting in the crypto world, you have already defeated 90% of people.
