One day you will understand that in the crypto world, it’s not about who earns quickly, but about who survives longer.
Six years ago, I entered the crypto world with a hundred thousand yuan, naive and confused. Watching my account fluctuate like a roller coaster, sleepless nights became routine. Two years later, that initial hundred thousand became one million five hundred thousand, but I finally understood one truth — in this market, lasting longer is the real skill.
My friend, who once entered the industry with me, and I have spent real money to establish six survival rules. These experiences are hard-earned, and I hope they are useful to you.
1. Rapid rises and slow declines may be the result of the market makers 'washing the plate' rather than 'reaching the peak'.
Newbies are the easiest to be washed out. When the price suddenly surges and then begins a long decline, most people think it has peaked and hurriedly sell off. But based on my observations, this is often a signal of the main traders accumulating positions.
A true top is often accompanied by a combination of 'violent surges + cliff-like drops'. Those torturous market conditions of rapid rises and slow declines are more like the main traders intentionally wearing down retail investors' patience, forcing them to hand over their chips. When you find the price oscillating within a range, unable to fall or rise, it is likely being washed out.
Remember, the main traders are more patient than you. They will wear down your will with time until you give up.
2. Sudden drops followed by slow rises; beware of the trap of induced buying.
After a sharp drop, if a large bullish candle appears, many people think it is a rebound signal and rush to buy the dip. I have suffered losses this way, getting in halfway up the hill, which was worse than the drop itself.
A single bullish candle after a sharp drop is often a trap for induced buying. The main traders exploit investors' fear of missing out, creating the illusion of a rebound to attract retail investors. A true bottom requires time to solidify, not just one or two candlesticks for confirmation.
My experience tells me, after a sharp drop, do not rush to enter the market; observe the changes in volume. Only when prices steadily recover and trading volume continues to increase can it potentially be a true reversal signal.
3. Volume at the top is not necessarily the endpoint; lack of volume is the most dangerous.
Common thinking suggests that volume at the top is a signal to unload, and one should run. However, my practical experience shows that high volume at the top often indicates a second wave of market activity, as large funds need time and space to enter and exit.
What really warrants caution is when the trading volume suddenly dries up. When the market is as silent as a ghost town, with sparse buy and sell orders, that is the calm before the storm. Lack of liquidity means that major funds have already exited, leaving only retail investors to amuse themselves.
I summarize it in one sentence: where there is volume, there is market activity; without volume, there is no hope.
4. The bottom volume must be sustained; a single bullish candle is unreliable.
During a bottom rebound, many people rush in after seeing a large bullish candle, often ending up trapped. A single bullish candle is insufficient to determine a trend reversal; the main traders often test the waters and quickly pull back, leaving those chasing highs out in the cold.
Building positions at the true bottom requires sustained and moderate volume increase. This means money is steadily absorbing chips, rather than engaging in short-term speculation. If you see prices fluctuating in the bottom area while the volume gradually increases, that is a reliable signal for building positions.
Steady and methodical capital accumulation never happens overnight.
5. Volume is the soul of capital; candlesticks are just the surface.
Many people are obsessed with studying various candlestick patterns, yet neglect volume analysis. In my experience, candlesticks can be manipulated, but volume is hard to fake. It is the true trace of capital flow.
When volume and price rise together, it indicates a healthy uptrend; when they diverge, it signals risk. When prices reach new highs but trading volume does not follow, it means the power driving the price up is insufficient, and a correction is only a matter of time.
When judging the market, I first look at volume, then price. Changes in volume can predict price direction changes in advance, which is an early indicator for discovering market pitfalls.
6. Understanding cash holding is the mark of a true expert.
In the crypto world, the greatest wisdom is not to seize every opportunity but to learn to hold cash and wait. In chaotic market conditions, it is better to miss out than to make a mistake.
I used to be a trading fanatic, itching to trade every day. Later, I realized that frequent trading resulted in a large amount of fees paid to exchanges, while my own account continued to shrink. What truly helped me earn steadily was learning to observe and hold my position when the market was uncertain.
Holding cash is not cowardice; it is strategic composure. Only make money that you understand, and do not confront the market head-on.
Written in the end
Over the years, my biggest realization is: the market is never wrong; it is our mindset and actions that are wrong. The crypto world does not need you to predict the future; as long as you can keep your mind steady and survive until the next bull market, you have already won against most people.
If I must give one most important piece of advice in the crypto world, it is: surviving is more important than anything.
Wealth is the monetization of knowledge; the market will ultimately reward those who have patience and discipline.
I hope we can meet again in the next bull market. Follow Xiang Ge to learn more first-hand information and precise points about the crypto world, becoming your navigation in the crypto space; learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
