I entered the crypto world in 2017, witnessing the euphoria of bull markets and enduring the cold winter of bear markets. But what truly made me understand the meaning of the crypto world was my cousin's story from five years ago.
That 18-year-old boy, curled up in the corner of an internet cafe after losing his parents, had nothing left in his eyes but emptiness. When I pulled him out, I didn't say any nonsense about 'getting rich in crypto', I just handed him a notebook with 8 hard-learned rules from my own mistakes.
1. Don’t be greedy for quick money; the crypto world specializes in dealing with those who don’t obey.
“The crypto world doesn't create money, it just transfers money” — this was his first lesson. The market specializes in treating various fantasies of overnight success, especially for beginners who can't even understand candlestick charts but dream of getting rich quickly. I told him to start with a few hundred U, where losing wouldn't affect his life, and earning shouldn't make him complacent. Five years later, he told me: “If I had rushed to break even back then, I might have gone to zero long ago.”
2. Invest spare money; living long is the winner.
I have seen too many people rush into the cryptocurrency world using their living expenses or even borrowing money, collapsing mentally at the slightest price fluctuation. My cousin initially felt the urge, but I forced him to swear: only use money that he wouldn't need for three years. This helped him avoid the panic sell-off during the LUNA crash in 2021. The cryptocurrency world is never short of opportunities; what is lacking is the capital to stay alive.
3. A stop-loss is a lifesaver, not a decoration.
"Trading contracts without a stop-loss is like driving a car without a seatbelt." I made him engrave this in his mind. Even with accurate judgment, a black swan could crash the market by 50% in an instant. He once lost 80% of his principal because he didn't set a stop-loss, and later cried while thanking me: "If I had held on, I probably wouldn't have even had a chance to turn it around."
4. Refuse FOMO; don’t touch junk coins even if they are given for free.
The stories of Musk promoting Dogecoin and Shiba Inu soaring thousands of times always excite people, but my cousin's discipline is: he won't touch coins with a market cap below the top 20, even if they drop 99%. He only focuses on mainstream coins like Bitcoin and Ethereum, which may rise slowly, but at least won't drop to zero suddenly. This has helped him avoid countless 'top projects from Chinese teams' scams.
5. Wait patiently for opportunities; the more anxious you are, the worse off you will be.
90% of the time in the cryptocurrency world is spent in fluctuations and declines, with real opportunities only a few times a year. My cousin once felt anxious about missing out and chased after rising prices, resulting in being stuck for half a year. Later, he learned to dollar-cost average in bear markets and sell in batches during bull markets, which helped him seize the opportunity in 2024.
6. Emotional stability is more important than technical analysis.
When the market is mixed with red and green, people are the biggest variable. I had my cousin write a trading diary every day to record his emotions during trades: Was he chasing prices out of fear of missing out? Was he holding on out of unwillingness to lose? Later he summarized: "Candlestick patterns can be learned, but if your mindset collapses, no matter how good the techniques are, they will be useless."
7. Take small steps to experiment, refuse to go all in at once.
Even for coins he is optimistic about, he insists on buying in 3-5 batches, with each batch not exceeding 10% of the total funds. This "cautious development" strategy allows him to average down during dips and take profits during spikes. Over time, he realized that "slow is fast."
8. The cryptocurrency world is not a redemption; discipline is.
My cousin's account has multiplied several times, but he says the greatest gain is not money, but regaining control over the order of life. The cryptocurrency world has different tragic stories, but it rewards those who respect the rules.
The last piece of heartfelt advice.
If you are new to the cryptocurrency world, remember: the biggest risk here is not volatility, but uncontrolled human nature. Those 8 iron rules essentially teach you how to resist greed and fear. Use spare money, follow the rules, and be patient—this kind of discipline wins not just in the market but also in life.
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