1. Don’t rush to buy: Even when buying groceries, you compare prices; why rush when buying coins?

The most common mistake for newbies is 'chasing after rises.' For example, if a certain coin suddenly rises by 20% yesterday and everyone is flaunting their profits, you get excited and go all in, but today it falls back to square one—this is called 'chasing highs ruins three generations, bottom-fishing enriches a lifetime.'

Correct approach: Just like waiting for discounts when buying groceries in the evening, wait for a pullback when buying coins. If you have a coin in mind, first put it in your 'shopping cart' (add to favorites), set a mental price level (for example, buy when it drops by 10%), and buy in batches when it hits that level. For example, if the coin you want to buy is now 100 yuan, don't rush to buy it; wait until it drops to 80 yuan to buy, which directly lowers your cost by 20%, and you can sell for profit when it rises again.

Remember: There are plenty of opportunities in the crypto space; what’s lacking is patience. Impulsive buyers end up as 'greater fools,' while those who calmly plan can become 'fishermen.'

2. Don’t be greedy when selling: Taking profits is true wisdom; greed ultimately leads to emptiness.

Many people buy the right coins but fail to make money. Why? Because of greed! For example, if a coin rises from 100 yuan to 150 yuan, you think 'maybe it can rise to 200,' but it falls back to 120 yuan, and you hurriedly sell—this is called 'a cooked duck flying away.'

Correct approach: Set a 'take profit point' in advance. For example, if you expect to make a 30% profit, sell when it reaches 130 yuan without caring if it later rises to 1000 or falls back to 50. It's like shopping in a supermarket; when you encounter discounted items, buying them means profit, so don't think 'I'll wait for a lower price next time.'

Remember: There is no 'highest point' in the crypto space, only 'locking in profits.' Greedy people often lose their capital, while content people can steadily make profits.

3. Be ruthless with stop-losses: Cutting losses hurts temporarily, holding on hurts for a lifetime.

Newbies have a common problem: 'playing dead when they are in a loss.' For example, if a coin you bought drops by 50%, you think 'it's already dropped so much, let’s wait for a rebound,' but it keeps dropping deeper, and in the end, you sell at the floor—this is called 'the more stuck you are, the tighter it gets, the longer you hold, the greater the loss.'

Correct approach: Set a 'stop-loss line' in advance, for example, sell if it drops by 15%. Don’t be stingy about that little transaction fee; it's like taking medicine promptly when sick; delaying it requires surgery! For example, if you bought a coin for 100 yuan and it drops to 85 yuan, decisively cut your losses with a 15% loss; but if you stubbornly hold on until it drops to 50 yuan, your loss becomes 50%—which is more cost-effective?

Remember: Stop-loss is not about 'acknowledging a loss,' but about 'saving your life.' As long as the green hills remain, you don’t have to worry about firewood. Losing your capital means it's really over.

4. Don’t diversify too much: Don’t be like a monkey peeling corn; grabbing too much leads to having nothing at the end.

Newbies always think 'the more coins I buy, the greater the chance of making money,' so they buy a bunch of BTC, ETH, DOT, SHIB, and end up staring at the screen every day, selling too early when prices rise, and getting stuck when prices fall—this is called 'biting off more than you can chew.'

Correct approach: Focus on understanding 2-3 mainstream coins, just like eating staple foods for meals, don't be greedy for snacks. For example, focus on BTC and ETH, thoroughly research their trends, policies, and market sentiment, which is much more reliable than randomly buying a bunch of worthless coins.

Remember: 80% of profits in the crypto space come from 20% of coins; being few but excellent can lead to big profits, while being many but mixed will only lead to huge losses.

5. Never be fully invested: Keep enough bullets for a prolonged battle; going all in is gambler behavior.

Many people go all in at the start, leaving not a penny in their accounts. When the coin price crashes and they want to average down, they have no money left and can only watch their losses expand. This is called 'using all your bullets and then getting beaten up when the enemy comes.'

Correct approach: Always keep 30%-50% of your funds as a 'reserve.' For example, if you have 100,000 yuan, at most use 50,000 to buy coins, and keep the remaining 50,000 for buying the dip during a crash. Just like driving, you need to keep enough fuel; don’t run out of gas halfway and get stranded.

Remember: Being fully invested is a major investment taboo; the market always has fluctuations. Keeping some cash helps to cope with emergencies, allowing for 'buying more as prices drop, lowering the cost.'

6. Go with the trend: Following the majority won’t be mistaken; going against the trend is just seeking misery.

There’s an old saying in the crypto space: 'The trend is your friend.' However, many people like to 'catch the bottom and touch the top.' For example, when the price of a coin is crashing, they insist on 'buying against the trend,' only to buy halfway down; when the price is soaring, they insist on 'shorting against the trend,' resulting in liquidation and bankruptcy—this is called 'being at odds with the trend, not knowing how you died.'

Correct approach: Use the simplest methods to observe trends, such as watching 'moving averages' (50-day moving average, 200-day moving average). If the moving average is rising, it indicates an upward trend, buy on dips; if it's falling, it indicates a downward trend, sell on rallies. Don’t complicate things; follow the majority, you won’t make big money but also won’t incur big losses.

Remember: In the crypto space, 'going against the trend' is 'suicide'; 'going with the trend' allows for 'survival.' Don’t think you’re smarter than the market; the market is always right.

7. Opportunities emerge from declines, and risks emerge from rises: When others are fearful, I am greedy; when others are greedy, I am fearful.

This is the most counterintuitive truth in the crypto space. When coin prices crash and everyone shouts 'it’s going to zero,' it’s often the best buying opportunity; when prices surge and everyone shouts '10x coin,' it’s usually the most dangerous selling signal—this is called 'while others hoard vegetables, I stock up, while others scramble for food, I sell off.'

For example: In March 2020, BTC crashed to $3,800, and everyone panicked and sold; later it rose to $69,000. In November 2021, BTC rose to $69,000, and everyone shouted 'let's hit 100,000,' but it fell to $15,000.

Remember: Don't panic during a crash, ask yourself 'Is this coin really worth anything?'; Don't rejoice during a surge, ask yourself 'Is this price reasonable?'. If you do the opposite, you are a scythe.

Final reminder: Investing in the crypto space is not gambling; it's a discipline practice.