1. Cryptocurrency volatility is high

Cryptos often fluctuate more than 5% a day — much more than stocks or traditional currencies.

2. Correlation between altcoins and Bitcoin

Most altcoins follow BTC's trend, especially in strong declines.

3. Macroeconomic events influence the market

Interest rates, inflation, and Fed decisions strongly impact crypto prices.

4. Liquidity varies significantly between coins

Less traded coins have higher slippage and manipulation.

5. A large part of the volume comes from bots and algorithms

A significant portion of trades is done automatically, which changes price behavior.

6. Drawdowns are common and severe

Drops of 50% or more occur frequently even in solid projects.

7. High correlation in crashes

During sharp declines, most coins drop together, regardless of fundamentals.

8. Volume confirms movement

Strong movements with high volume tend to have more strength than those with weak volume.

9. Periods of consolidation precede breakouts

Long consolidations usually precede sharp price movements.

10. Bear markets last for months (or years)

Bear cycles can be long and require patience and risk management.

11. High capital concentration

Few addresses ("whales") control a large portion of the supply of several cryptocurrencies.

12. Volatility can be measured

Indicators like ATR and standard deviation help measure price instability.

13. Simple strategies are more robust

Tactics like DCA, support and resistance, or moving averages work better in the long term than complex and adjusted setups.

14. Most amateur traders lose money

Statistics show that more than 80% of day traders lose money after months of operation.

15. High risk requires strict management

Ruin risk is high without stop loss or exposure control.

16. External events cause breakouts

Hacks, bans, ETFs, forks, and scandals directly affect prices.

17. Return asymmetry

You need to gain more than 100% to recover from a 50% drop.

18. Technical analysis works better with liquidity

Indicators like RSI, MACD, and Moving Averages are more reliable in assets with high volume.

19. Trends have phases

Every strong movement goes through accumulation, explosion, and correction (Dow theory).

20. Low-cap coins are more volatile

Small caps rise and fall much faster than large coins.

21. Bitcoin dominance is a good thermometer

When BTC dominates the market, altcoins usually suffer.

22. Indicators are probabilistic, not certain

No indicator offers 100% accuracy — they increase probability, not guarantee anything.

23. Diversification reduces risk but does not eliminate it

Holding multiple coins reduces exposure to isolated failures, but does not protect against general declines.