The cryptocurrency market is not a cash machine, but a brutal arena. Today, I want to pave a path for you with the experiences gained from real money, to help you avoid pitfalls.
I remember when I first entered the circle, I was a newcomer who got dizzy just by looking at candlestick charts. Ten years have passed, and I have witnessed too many novices repeating the mistakes I made back then: taking risks with luck and ultimately getting deeper into trouble, hesitating and missing opportunities, being disturbed by short-term fluctuations. The market never lacks stars, what it lacks is longevity.
This article summarizes the survival rules I've learned over ten years. I hope that after reading it, you can avoid at least three years of detours.
1. Luck and hesitation are the beginnings of losses
The market specializes in punishing those who do not comply. When you hold onto the hope of 'just a little longer,' the market will teach you a harsh lesson with a more severe decline. Similarly, when opportunities arise yet you hesitate, by the time you finally make a decision, you often miss the best timing.
The market is like a temperamental actor that won't follow your script. I once stubbornly held on during a major drop and ended up halving my capital. I also hesitated at the beginning of a bull market, watching others reap the most substantial gains. Remember, not to harbor any illusions or hesitate is the first lesson of survival.
2. The wisdom of choosing between long-term, short-term, and swing trades
Long-term positioning is your foundation, enabling you to hold; short-term operations are the seasoning, keeping you sensitive to the market; while swing trading is an art that requires patiently waiting for the best timing.
But many people get the order wrong—investing with a trading mindset, yet holding onto trades with an investment mindset. My current principle is: core positions for long-term layout, small amounts of capital for practicing short-term trades, and only swing trading when certainty is high. This helps me remain calm amid volatility.
3. Position management is key to survival
Never exhaust all your bullets. The harshest aspect of the market is that it always delivers a lethal blow when you are out of resources. I tend to divide my funds into three parts: one portion for long-term holding, one for flexible operations, and another part as cash to wait for a market crash to buy at the bottom.
Position management is not a technique; it is an art. It determines whether you can sleep soundly at night. When your position makes your heart race, it indicates that you have exceeded your own tolerance.
4. Stop-loss and take-profit: Overcoming greed and fear
Setting stop-loss and take-profit levels is like buckling your seatbelt. Trading without stop-loss is like driving a car on the highway without brakes—exciting but deadly.
I have a painful lesson: once I had a threefold profit on paper but lost it all due to greed without taking profits, resulting in both profit loss and capital loss. Since then, I take partial profits when I'm gaining, and decisively cut losses when I'm losing. Remember, the market never lacks opportunities; what it lacks is capital.
5. The market often reverses at emotional extremes
Markets are born in despair, grow in hesitation, and perish in madness. When everyone is discussing cryptocurrencies, even the vegetable market aunties are recommending coins to you, it’s likely that the peak is not far away. Conversely, when the market is silent and no one cares, opportunities are quietly brewing.
At the end of 2022, when Bitcoin crashed, the market was filled with pessimism, yet I started dollar-cost averaging. It wasn't because I was braver than others, but because I believed the market always goes through cycles. This judgment proved correct.
6. Emotional management: The dividing line between success and failure
Trading is essentially a game against oneself. Greed and fear are the biggest enemies of investing. I find that when my emotions fluctuate, it often coincides with a decline in my judgment.
I now have a habit: writing down my decision reasons before trading and recording emotional changes afterward. This simple action has helped me avoid many impulsive decisions. Remember, a calm mind is your greatest asset.
7. Continuous learning: The necessary path from novice to expert
In the cryptocurrency world, one day is like a year in the human world. The speed of iteration in this industry is astonishing; yesterday's truth may become today's fallacy.
I spend at least an hour every day learning new technologies and projects. It's not about blindly chasing hot trends but understanding the underlying logic. DeFi, NFT, GameFi... every new concept has its value support and bubble components. Only being able to distinguish between the two is real capability.
8. Identify traps: Avoid those obvious pitfalls
Do not trust any 'guaranteed profit' projects. If something seems too good to be true, it probably is. I once trusted an insider tip from a 'big shot' and ended up with heavy losses. Later, I realized I was just a pawn in their game.
Independent judgment is a hundred times more important than blindly following trends. Now, I assess projects based on three points: whether they solve real problems, whether the token economics are reasonable, and whether the team is reliable.
In the cryptocurrency world, the ultimate practice is to cultivate one's character. The market amplifies all your strengths and weaknesses, whether it’s greed, fear, patience, or decisiveness.
These rules are not a guarantee for unbeatable success; rather, they are a talisman that helps you survive longer in the market. True growth comes from reflection and summarization after every misstep.
Profit in bull markets, accumulate chips in bear markets. Regardless of how the market changes, if you protect your capital, keep learning, and manage your emotions well, you will be able to laugh until the end.
In this cruel yet opportunity-filled market, may we all be calm observers rather than fervent gamblers. Follow Ake to learn more about first-hand information and precise points in the cryptocurrency world, becoming your navigation in this space; learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
