In the cryptocurrency world for eight years, I've seen too many people fall into the same trap: unable to distinguish between 'washing' and 'dumping'.

Last week, a brother hurriedly asked me: 'Brother Bao, this coin has dropped by 30%, should I average down?' I took a glance at the K-line and felt a chill in my heart—he mistook a complete dump for a washing opportunity. Average down? If you average down, you are just digging yourself deeper.

Take a recent coin as an example: after rising from 2U to 5U, it started to pull back, and many retail investors excitedly shouted 'washing, washing', but the more they averaged down, the more they were trapped, ultimately leaving in tears. The signs of dumping were clear: high prices with increased volume but no growth, trading volume multiplied several times while the coin price stubbornly failed to break through; suddenly, there was a cliff-like drop, slamming directly from 5U to 3U, without even a decent rebound in between; after the drop, there was a fake rebound that seemed like it would take off, but in reality, the volume shrank, and the main force just wanted to deceive the last batch of buyers. This is not washing, this is the goods crashing down on your face.

What is true washing? For example, the GAMA I analyzed earlier, which shows reduced volume during declines and increased volume during rebounds, and it firmly holds key support levels. That is the main force cleaning up floating chips, not throwing stones down the well.

Brothers, remember three crucial signals: reduced volume during declines and increased volume during rises indicates washing; increased volume during declines and reduced volume during rebound indicates dumping. Washing maintains key positions, while dumping cuts through directly. Washing is slow to drop and quick to rise, dumping is quick to crash with weak rebounds. These three points are the watershed for whether retail investors can survive.

You either continue to be harvested or learn to distinguish, standing on the side of the big players who harvest. This is how the crypto world works; the market will not sympathize with your ignorance. If you cannot understand the K-line language, you will only pay tuition again and again.

I have suffered losses that may exceed your current capital. But I have endured, which is why I always say: I used to stumble in the dark alone, now I hold the light, and the light is always on; will you follow? @招财阿宝