A veteran trader in the cryptocurrency circle shares his blood and tears: 9 inhuman survival rules that can help newcomers avoid 99% of pitfalls! (Part 1)

In the bloody and stormy eight years of fighting in the cryptocurrency circle, I transformed from a financially troubled novice retail investor into a seasoned player with an asset of 30 million. The mines I have stepped on and the tuition I have paid have condensed into 9 survival rules that can rewrite fate. These experiences bought with real money might save you ten years of detours.

1. The survival law for small funds: Don’t let greed devour reason.

Retail investors holding a hundred thousand in capital always fantasize about getting rich overnight, unaware that this is the beginning of losses. The market fluctuates frequently every day, but there are very few truly worthwhile opportunities. I have seen too many people staring at the market for 24 hours, ultimately losing money while their health deteriorates first. Remember, trading is not everything in life; rather than greedily trying to do too much, it’s better to seize one high-certainty opportunity every day. In the cryptocurrency circle, controlling desires is more important than chasing profits.

2. The deadly trap of good news: Don’t be the last fool to pick up the baton.

Major good news is often the market’s "sweet trap." When good news is announced, the market will quickly price in all expectations; chasing after high prices at this time is equivalent to taking food from a tiger's mouth. My experience is: if you haven’t exited in time on the day of the good news, decisively clear your position the next day when the market opens high. The cruelty of the capital market lies in the fact that when everyone is cheering, the crisis may have quietly arrived.

3. The risk-averse philosophy during special periods: Defense is more important than offense.

During special nodes like holidays and policy adjustments, the market is often filled with uncertainty. Rather than taking risks in the fog, it’s better to reduce positions in advance or even stand aside with no positions. Wait for the market to return to calm, then enter at a lower cost; this is not cowardice, but the survival wisdom of mature traders. In the cryptocurrency circle, preserving strength is always more important than blindly striking.

4. The fatal misconception of medium to long-term trading: Always leave yourself a way out.

When trading medium to long-term, avoid going all in; this is a truth I learned through painful lessons. Heavy investment may seem bold but actually hands over your fate to the market. Reasonably allocate funds and reserve enough space for additional investments to calmly respond during market fluctuations. Remember, in the cryptocurrency circle, staying alive gives you the chance to turn things around.

5. The core rule of short-term trading: Quick in and out, take profit when it’s good.

Short-term operations emphasize efficiency and execution. Once a profitable opportunity appears, act decisively; when the market starts to stagnate, immediately withdraw. Don’t fantasize about catching every wave of the market, nor should you pursue buying at the lowest point and selling at the highest; such greed is often the start of losses. In the cryptocurrency circle, making money within your understanding is the way to last.

As a seasoned cryptocurrency investor, I share my experiences and insights. Interested in the cryptocurrency circle but don’t know where to start? Follow me and check my homepage to achieve freedom in this bull market.