The K-line on the screen is jumping, reflecting the ups and downs of my ten-year cryptocurrency career. There are no myths here, only survivors.
I remember ten years ago when I first entered the cryptocurrency world, I was like most newcomers, with greed glimmering in my eyes. At that time, Litecoin was only 2800 yuan each, and I gritted my teeth to invest nearly the price of two coins. Within three months, it rose to 8500 yuan, and I stared at the numbers in my account, grinning foolishly, as if I saw the dawn of financial freedom.
A year later, Litecoin soared to 110000, and I even started planning to change cars with my friends, completely throwing the advice of 'take profit when it's good' out the window. As a result, the bull market suddenly turned in 2018, and the coin price halved again and again. I panicked at 2500 yuan and sold overnight – I only made 5000 yuan in profit, but I missed the opportunity to turn it into 4.5 million.
Such stories are common in the crypto world. In 2017, Bitcoin's price rose from $1,000 at the beginning of the year to $19,780 at the end of the year, nearly a 20-fold increase, followed by a mess. The feeling of falling from the clouds is still fresh in my memory.
1. Bloody lessons: The crypto space is not a casino but a battlefield of cognition.
I once made all the mistakes that new traders make: chasing prices and losing in a perpetual motion. I saw a coin rise by 50% in one day, I FOMOed and went all in, only to buy at the peak. After a few days of decline, I sold at a 20% loss. Just after selling, it shot up with a large green candle, hitting a new high.
What’s even more foolish is that I once believed in various "gurus" and joined countless "financial freedom groups." The so-called "teachers" in the group shared profit screenshots every day, shouting about "insider information" and "immediate pump to 100%." I felt like I had grasped a lifeline; I bought whatever they suggested. What happened? I either bought into positions they had already established or got stuck after buying, and then the group disbanded with the "teacher" disappearing.
The most painful lesson is about leverage. I witnessed a childhood friend using 12x leverage to go long on AVAX, losing 450,000 in 8 minutes, smashing his phone into pieces. I’ve also experienced the thrill of tripling my investment in one night, but that thrill is like a drug, making one look down on the small profits from spot trading. More often, it leads to liquidation. The words "forced liquidation" on the screen are glaringly red.
2. Enlightenment moment: Build your own survival system.
After experiencing multiple painful lessons, I stopped. Not stopping trading, but stopping the headless-chicken approach. I began to face the bloody account and conduct a thorough "surgical" self-analysis.
I asked myself three questions:
The market is always right; who is wrong? (It’s me.)
How do I make money in the market? Is it luck or skill? (It used to be luck, but luck is unreliable.)
If I lost everything now, could I bear it? (No)
The answer is harsh but clear. I know I must build a system that allows me to "never die." The core of this system is not to predict whether tomorrow will rise or fall, but to ensure that regardless of tomorrow's movement, I can survive and make money.
3. My five rules for survival.
1. Invest spare money and maintain a bottom line.
I have seen a neighbor lady mortgage her gold jewelry to trade coins, crying at the bank entrance after being liquidated. This deeply touched me. Now, I resolutely refuse to use essential living funds for investment, nor will I borrow money to trade coins. Crypto investment can only be spare money, the loss won't affect basic living expenses.
The cryptocurrency market is highly volatile, with no limits on price fluctuations, heavily influenced by the market, and the fluctuations are like a "roller coaster." These characteristics make the virtual currency market filled with speculation, unsuitable for investors with weak risk tolerance.
2. Stop-loss and take-profit, overcome greed.
In 2021, I entered Dogecoin at $0.03, and when it rose to $0.6, the group shouted "go for $1," I didn’t sell, and it eventually dropped to $0.15 before I cut my losses. Now, I always place take-profit orders in advance when buying coins, even if the profit is small, securing profits is what matters.
My "321" tiered take-profit method: When the price rises by 100%, sell 30% of the position to recoup the principal and some profits; if it continues to rise by 50%, sell another 20%; set a trailing stop for the remaining 50%. This way, I lock in profits without missing out on a super bull market.
3. Stay away from leverage to live longer.
The crypto space is full of opportunities, but what it lacks is the "patience to survive." Even if you make money 10 times, just one liquidation can bring you back to square one.
I am now completely avoiding leveraged contracts. This is not a path to financial freedom but a direct train to hell. Those who achieve wealth through leverage are the one in several hundred thousand "survivors"; what you don’t see are the hundreds of thousands of "silent majority" who got liquidated.
4. Cold wallets are the safes for digital assets.
Two years ago, a small exchange suddenly went bankrupt, and the 3000 U I put in is still on the liquidation list. Now, as long as my account exceeds 10,000 U, I immediately withdraw it to a cold wallet. Although the transfer fees and steps are cumbersome, I can sleep soundly.
Exchanges are not banks; your money there does not belong to you. The largest pitfall in crypto history is the exchange collapse: FTX went to zero overnight, users were unable to withdraw; the founder of Canada's QuadrigaCX "mysteriously died," and users' assets could never be recovered.
5. Make independent judgments and stay away from noise.
Previously, there was news in the WeChat group that "DOT is going to be heavily invested by large institutions," I followed in, only to be trapped for half a year. Later, I understood that by the time you see news, the insiders have already made enough profit and are preparing to exit.
The crypto space is the place with the most information noise. 90% of the information is ineffective or harmful. I have cut off all "signal groups," read white papers myself, and researched project teams, solutions, and token economic models. Only through deep research can one hold their ground, and not panic during downturns but dare to increase positions.
4. Cyclical thinking: The highest principle of survival in the crypto space.
There is a clear four-year cycle in the crypto space (highly aligned with Bitcoin's halving cycle). I adopt completely different position strategies at different stages of the cycle.
In the deep cold of the bear market (like 2018-2019): Boldly build positions in batches using a "dollar-cost averaging + pyramid stacking" strategy. Ignore the price, focus only on value.
During the crazy bull market (like Q1 2021): When the "Bitcoin Fear and Greed Index" remains in extreme greed and everyone around is discussing the crypto space, I start to take profits in batches.
This cyclical thinking has helped me avoid FOMO chasing highs at the peak of the bull market and panic selling at the bottom of the bear market.
5. Conclusion: The crypto space is for living; life is not for the crypto space.
Now, I spend no more than 2 hours a day watching the market. Once I set up price alerts, I completely leave the computer. I go to the gym, spend time walking with family, and read non-financial books. A healthy body and harmonious family relationships are the foundation of my stable mindset.
The crypto space is brutal, but it is also relatively fair. It does not consider your background or origin; it only looks at your cognition and mindset.
Those flaunting luxury cars and mansions are either scammers or haven't lost everything yet. Those who truly make money are quietly accumulating coins, while still commuting on shared bikes.
In this market, living longer is more important than making quick profits. The true ability to avoid pitfalls comes from three words—prudence, common sense, and long-termism. Let’s encourage each other.
Follow Ake to learn more firsthand information and precise points in the crypto space, becoming your navigation in the crypto world, learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
