What the cryptocurrency world has taught me over the years is a set of rules that many people are unwilling to admit but cannot escape. If you want to live long and earn steadily, you must engrave these principles into your trading habits.
First, don't frequently change positions.
Market rotation is the norm; the asset you dislike today may soar tomorrow. Most people fail to make money not because they didn't choose correctly but because they are dragged down by constant switching.
Second, the higher the hype, the greater the risk.
When a certain coin becomes the focus of everyone's discussion, it is often close to a peak. A bull market may allow for recovery, but once a bear market deepens, most will never return to where they were.
Third, don’t fantasize about a hundredfold myth.
Real opportunities come from positions you can hold. Those who can't sit through a 20% rise are only comforting themselves when they talk about a hundredfold. True excess returns often arise from holdings that are temporarily “forgotten.”
Fourth, when others are fervent, you must remain clear-headed.
Calculate the risk-reward ratio before entering. If the potential return is limited but the risk is significant, it’s better to stay out than to act impulsively. Money can always be earned, but once the principal is lost, it’s hard to start over.
Fifth, especially stay away from contracts in a bull market.
Whipsaws can often be faster than emotions; a single impulse could wipe out all profits. Don’t blindly trust indicators, and don’t overestimate your win rate—those are often scripts prepared by the market makers for you in the contract market.
Sixth, projects that can survive a bear market will have opportunities in a bull market.
Most of the time, the market is accumulating strength in a flat manner, and the actual explosion often lasts less than ten percent of the time. What you need to do is simply make it to that moment.
Seventh, don’t expect mainstream coins to recover with small funds, and don’t gamble heavily on altcoins with large funds.
Different capital scales should have different strategic paths. Knowing your position allows you to choose the right approach.
Eighth, going with the trend is the only way to survive long-term.
There will be agony and self-doubt during declines, but once the trend reverses, real returns are often realized in a very short time.
In this market, those who can endure loneliness, restrain impulses, and maintain rhythm will ultimately go further and laugh last.
