1. Emotional chasing and panic selling vs Quantitative cool-off period
Misconception: FOMO (Fear of Missing Out) causes high-position entry, such as when Bitcoin surged to $73,000 in 2025, 63% of losses came from impulsive chasing.
Solution:
24-hour cool-off period: Pause trading when daily gains exceed 50%, verify with CoinGecko if the market maker is pulling the price.
Mechanical profit-taking and stop-loss: Use 3Commas to set "don't chase if it rises over 30%" and "must sell if it drops below MA20 moving average."
2. Trusting influencers vs Three-layer detox system
Misconception: A certain KOL received $100,000 to hype MEME coins, and the next day the project team ran away.
Solution:
Team scanning: Check core members' resumes on LinkedIn, blacklist anonymous teams directly.
On-chain monitoring: Use Etherscan to monitor large holders; if over 50% of tokens are concentrated in 5 addresses, it's a warning.
3. Assets running naked vs Cold and hot wallet combination
Misconception: In Q1 2025, losses from phishing attacks exceed $230 million, with beginners being the hardest hit.
Solution:
Store 80% of assets in hardware wallets: Use Ledger Nano X for offline management of large assets.
Withdrawal whitelist + API key rotation: The three safety essentials for exchanges.
4. High-frequency gambling vs Pendulum Theory
Misconception: Newbies trading 5 times a day, 89% loss after 3 months, with fees consuming 47% of profits.
Solution:
In a bull market, trade twice a week: Focus on BTC/ETH breaking key resistance levels.
Bear market dollar-cost averaging strategy: Use CoinStats to automatically increase positions by 10% each time BTC drops 10%.
5. Single bet all-in vs Three-stage rocket model
Misconception: 90% of funds bet on AI coins, and after the team runs away, assets shrink by 97%.
Solution:
40% survival money (BTC + ETH): The cornerstone of anti-fall.
30% dark horse in the race (AI/RWA): Source of excess returns, quarterly dynamic balance.
6. Gas fee black hole vs Cross-chain arbitrage
Misconception: Ethereum transaction fee peaks at $50, small fund profits are swallowed.
Solution:
Transition long-term holdings to StarkNet: ZK-Rollup technology gas fee ≈ $0.1.
When Polygon fees soar: Immediately cross-chain to Avalanche using Celer.
7. Panic selling at floor price vs Panic buying checklist
Misconception: In March 2025, BTC plummeted to $52k, and those who sold at a loss missed a 38% rebound in three days.
Solution:
Extreme market GPS: Buy at the bottom when USDT premium > 3% + exchange BTC inventory drops 5% weekly.
Ladder averaging: Increase position by 10% every time it drops 5%, mechanically executing contrary to human nature.
Summary of survival rules
Use tools instead of emotions: Set three indicators in TradingView for resonance (MACD + RSI + Bollinger Bands).
Regular cognitive detox: Join Discords of top VCs like a16z, mute 99% of the noise.
Iron rule for investing spare money: Use 20% of savings for cryptocurrency, losing it won’t affect life.
Tip: Beginners are advised to practice on a simulated account for 1 week before trading live!
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