The lightning surge in the cryptocurrency market has caused many newcomers' account curves to show steep upward moments, but in the end, most people's curves will fall at an even faster speed, forming long-term deep pits.

In these years of trading cryptocurrencies, I have seen too many people repeatedly educated by the market. As someone who has been through it, I have summarized these 16 principles that condense practical experience and lessons learned with real money for you. This can help newcomers avoid pitfalls and is also worth self-reflection for veterans. Remember, in this market, surviving is more important than anything else.

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01 Timing the Cycle: The Survival Rules of Bull and Bear Markets

Identifying market cycles is the first step to survival.

In a bull market, market sentiment is fervent, and liquidity is abundant; altcoins often gain much more than mainstream coins. You need to participate boldly yet cautiously in high-potential tracks.

Conversely, bear markets are periods of value return. Liquidity tightens, and risk appetite declines. At this time, mainstream coins like Bitcoin and Ethereum demonstrate strong resilience and certainty. Their core narratives are solid, making them the preferred choice for preserving strength and waiting for the next cycle in a bear market.

Always remember: Bull markets rely on momentum, bear markets emphasize quality. By following the cycle, your chances of success will greatly increase.

02 Technical Signals: Interpreting the Market Language Behind K-lines

Charts are the breath of the market. "Bottom volume" is a key signal. When a cryptocurrency shows significant and sustained volume increase after a long period of sideways movement or decline at relatively low levels, it often means that a large amount of capital is starting to enter, which could be a precursor to a breakout.

Another key buying point is "pullbacks in an uptrend." When a cryptocurrency is in a clear bullish arrangement (e.g., price running above key moving averages), its pullback to important support levels—such as the 30-day or 60-day moving averages, or previous key platforms—often represents a favorable entry point with a better risk-reward ratio.

03 Trading Discipline: Using Rules to Combat Human Weaknesses

Discipline is the dividing line between ordinary traders and mature investors.

Give up frequent trading. The market is ineffective most of the time; true trend markets that provide huge profits occur only a few times a year. Overtrading will only deplete your principal and energy, and increase the probability of making mistakes. "Making a few correct large trades in a year is enough."

Manage your positions strictly. Never go all in. No matter how certain an opportunity may seem, always leave room for unexpected black swans and market fluctuations. A reasonable position size is the foundation for maintaining a stable mindset and making rational decisions.

04 Risk Control: Preserving Capital is the Primary Task

In the cryptocurrency market, survival is prioritized over profit.

For "losing garbage coins" that have already proven to be bad decisions, do not average down to dilute costs. This usually only traps you deeper on the wrong path. Admit mistakes promptly, cut losses decisively, and invest limited funds into more promising opportunities.

Invest with spare money. This is the most important guideline for mindset. Investing is not gambling; you will likely experience losses and turmoil. Only by investing with money that you can afford to lose without affecting your life can you maintain a calm mindset and avoid making irrational decisions driven by fear or greed. A good mindset itself is a huge competitive advantage.

05 Market Awareness: Piercing Through the Fog to See the Essence

You need to have a clear, contrarian understanding of the market.

News is always lagging and chaotic. When positive news is released, the price is often already priced in; blindly following trends can easily make you a "bag holder." News should only be one of the reference factors for decision-making, not the sole basis.

Do not chase every hype. The crypto market's hot spots rotate extremely quickly; by the time you see them, it is often near the end of the trend. Focus on one or two tracks that you have researched deeply, building a cognitive advantage is far more sustainable than chasing fads.

Maintain independent thinking and be wary of market consensus. "When most people are optimistic, it is often when risks arise." Conversely, when the market is in extreme fear and no one cares, real opportunities may be brewing.

06 System and Mindset: The Ultimate Training for Traders

The final victory belongs to those who have a system and a good mindset.

Establish and strictly adhere to your trading system. This system should cover: how to select targets, when to buy, how much to invest, when to take profits, and when to cut losses. Using cold rules to constrain impulsive human nature is the only way to achieve long-term stable profits.

Learn to wait in cash. The market does not have opportunities every moment. When the market direction is unclear or there are no opportunities that fit your system, being in cash is the best action. Patiently wait for the market to provide clear, high-certainty signals before taking decisive action.

Investment is a long-distance race, and the goal is to achieve long-term compound growth of assets. Maintain a good mindset, manage your investments like a business, and you will be able to navigate through bull and bear markets, ultimately reaching the finish line.

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Every market pullback is a "natural selection" against investors who are over-leveraged, trading frequently, and lacking principles. Those who can maintain asset stability during a significant downturn did not make the right decision at that moment; they established a solid risk management framework before that.