Survival Rules in the Crypto World: 15 Ironclad Laws to Navigate Volatility
In the ever-changing crypto space, survival is the ultimate victory. There are no celebrations for the lucky; only long-term wins for those who strictly adhere to the rules. The following 15 survival rules are key guidelines for traversing market cycles:
1. Capital Comes First: Prioritize safety above all; better to miss out than to take risks. Ignoring the risks of ambition will ultimately backfire on all gains.
2. Avoid Greed, Seek Stability: Give up fantasies of getting rich quickly; accumulating small profits is better than betting big. Controlling desire is essential to seize real opportunities.
3. Diversify for Safety: Use a diversified asset portfolio to spread risk, keeping over 20% in cash. In a market reversal, liquidity is a lifeline.
4. Strictly Follow Discipline: Stay away from downtrending coins, refuse to chase highs or sell lows. Impulsive trading only sends “tuition fees” to the market.
5. Know When to Enter and Exit: Build positions in batches during sideways markets, and decisively take profits when targets are reached. Avoid greed and attachment to battles to see the true outcome.
6. Respect Risks: There are endless opportunities to earn money in the market, but your balance could go to zero. Knowing when to take profits ensures you can smile in the end.
7. Be Decisive with Losses: Cut losses promptly when fundamentals deteriorate. Hesitation can turn small losses into deep pits; preserving capital is key to the future.
8. Go with the Trend: For long-term views, look at weekly charts; for ultra-long-term, check monthly charts. When trends reverse, take profits without resistance.
9. Stay Alert for Extremes: Reversals often occur after sharp rises and falls. Always remain clear-headed about “irrational exuberance.”
10. Better to Have Less than Excess: 90% of market movements are noise. Learn to stay in cash and wait; missing out is no shame, but making a mistake is fatal.
11. Patience Wins: Rather than blindly searching for opportunities, wait for trends to clarify. Top trading is about winning in patience.
12. Know When to Stop: Set profit targets and rest immediately after reaching them. Maintaining rationality is more important than pursuing extremes.
13. Losses are Your Responsibility: Stop-losses are non-negotiable, while profits depend on the market. Don’t confuse luck with skill; chance can ruin plans.
14. Time is Compound Interest: Frequent trading erodes capital. Stick to trends, and enduring the quiet will allow you to preserve prosperity.
15. Knowledge and Action Must Align: No matter how perfect a strategy is, without execution, it remains talk. Use discipline to combat inner demons, letting rationality guide trading.
These rules encapsulate countless lessons learned through blood, sweat, and tears. Only by embedding these rules into your very being can you become a true survivor and victor amidst the tumultuous waves of the crypto world.
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