After eight years of struggles and with 5,000 W in tuition fees, I have gained six iron laws that defy common sense.
In 2017, I arrived in Shanghai with 20,000 yuan. At that time, I didn't really understand what Bitcoin was, I just knew this thing could make money.
Eight years have passed, and I am still in the crypto space, relying on a set of 'stupid methods' that most people dislike. Not only have I survived, but I have also earned numbers that most people wouldn't dare to imagine. Today, let's not talk about metaphysics or the myths of getting rich quickly, but rather discuss those 'common sense traps' that have led countless retail investors to pitfalls.
1. Rapid rise and slow fall? Hold on tight, don't get 'washed' off the car
Newbies are most easily washed out by fluctuations. After a sudden surge in the market, when it starts to decline again, if a large bullish candlestick is followed by a series of small bearish candlesticks, many people get scared and rush to cut losses. But the truth is often: a rapid surge ignites emotions, while a slow decline washes away restless chips.
I have seen too many people panic sell during such times, only to find that a few days later the coin price soars, leaving them to pound their chests in regret. What should be truly alarming is the 'flash crash' after a volume surge; that is the culmination of the market maker's fishing.
2. Rapid declines slow recoveries? Keep your hands steady; bottom-fishing may end up halfway up the mountain.
When the market suddenly plummets and then gradually rebounds, it seems like 'the drop has reached its limit', but in fact, it is a trap to lure buyers. Remember: market makers never use mercy to exchange for profit; rebounds in a downtrend are like poisoned candy – a taste could injure you.
There is no so-called 'iron bottom' in the crypto world, only relative bottoms and absolute bottoms. My personal experience is to not try to catch a falling knife; waiting for it to hit the ground and bounce a few times before picking it up is not too late. Those who try to catch the bottom halfway up the mountain are often the first to be eliminated.
3. Look at 'volume' during top fluctuations, don't be fooled by the excitement.
Continuous volume expansion and fluctuations at high levels indicate fierce competition between bulls and bears, and there is still a chance to rise; but if the trading volume suddenly shrinks and the market falls silent, be careful, as this is often the last 'suffocation moment' before a crash.
Trading volume does not lie. When the market is bustling and everyone is talking about how much they have earned, what you should do is to gradually take profits rather than chase prices. Remember, a typical characteristic of retail investors is: greedy when they should be fearful, fearful when they should be greedy.
4. Bottom rebound? Beware of 'one-day tour' false signals.
A sudden surge in volume often serves as a bait to attract attention; the true bottom signal is often a gentle increase in volume after a period of low volume consolidation – that is the footprint of smart money quietly entering the market.
My own strategy is: it’s better to miss the lowest point than to wait for trend confirmation. The crypto world is never short of opportunities; what lacks is the mindset that understands delayed gratification and the courage to operate against the tide. Many people get stuck their whole lives in chasing highs and cutting losses, not because of bad luck, but simply because they cannot see the rules of the game.
5. Forget candlesticks; first understand the 'emotional mirror'.
What matters in the crypto world is not technology, but human nature. Trading volume is the mirror of market sentiment; candlesticks are just shadows. Learning to sniff out greed and fear from changes in volume means you are ahead of most people.
Market sentiment is an assessment of traders' attitudes and emotions, these emotions can influence investment decisions, especially in the highly volatile crypto market, where sentiment can fluctuate sharply in a short time. I check the fear and greed index every day; when the index shows extreme fear, it may be a good buying opportunity; when the index shows extreme greed, it is a signal to consider gradually taking profits.
6. The highest realm of trading is the principle of 'nothing'.
The 'three no' mentality I summarized over these eight years is more effective than any indicator:
No obsession: able to wait empty-handed, not afraid of missing out. 90% of the time in the crypto world is spent in fluctuations and declines, with only 10% of the time being an increase. Learn to stay empty-handed when there are no opportunities, and you will have outperformed 90% of people.
No greed: do not chase highs, do not bet on the 'last leg'. Anyone promising you 'capital protection and interest' or 'stable high returns' is 100% a scam. Remember, you are focused on returns while criminals are focused on your principal.
No fear: when others panic, you can calmly pick up chips. When social media is filled with wailing and even the most optimistic influencers begin to fall silent, it is often a good time to build positions in batches.
Beware of common scams in the crypto world.
In my eight years in the crypto world, I have seen too many people fall into traps without realizing it:
Meme coins/ Dogecoin frenzy: these coins have no technical value, application scenarios, or team support; their only purpose is to inflate and offload.
Ponzi scheme/fund platform: promising 'stable returns' of 20%-50% per month, essentially using the money of later investors to pay early investors, creating an illusion of profit.
Smart contract scams: project parties leave 'backdoors' in smart contracts, possessing the authority to infinitely issue tokens or directly transfer user-authorized assets.
My 'clumsy' investment philosophy
Many people always want to find shortcuts, but don’t realize that the biggest shortcut is to keep their feet on the ground. My 'clumsy' effort includes:
Invest only with money you can afford to lose: this money should be 'spare money' that won’t affect your normal life even if you lose it all.
Do your own research: before investing any money, carefully review project white papers, team backgrounds, token economics, and other information.
Value asset security: mastering private keys means you need to take 100% responsibility for the security of your assets. Use hardware wallets to store large assets, and never disclose your mnemonic phrases and private keys to anyone.
The cryptocurrency world is like a new land full of opportunities and dangers; there are stories of overnight wealth every day, but more often, there are tragedies of total loss. True veterans of the crypto space do not rely on luck and courage, but on discipline, patience, and risk awareness to survive in this market.
Remember, all dreams of getting rich quickly come with a hidden price tag – it could be all your savings. Instead of fantasizing about overnight wealth, it’s better to keep your feet on the ground, steadily creating and accumulating wealth within your capability.
Follow Xiang Ge to learn more first-hand information and precise points of knowledge in the crypto world, becoming your navigation in the crypto world; learning is your greatest wealth!#巨鲸动向 #加密市场观察 $ETH
