Survival guide for crypto newbies: My blood-stained experiences and counterintuitive advice.
In the year I first entered the crypto space, I stared at the bouncing candlesticks on the screen, as if seeing countless illusions of financial freedom beckoning. Three months later, looking at the 60% shrinkage in my account, I truly understood—crypto is not an ATM, but a jungle full of hidden currents. If you're eager to jump in, please take this scarred survival manual first.
Step one: Abandon the fantasy of getting rich quickly and embrace the 'survival mode'.
Counterintuitive understanding: The rarest thing in crypto is not the hundredfold coins, but the patience to survive to the next bull market. I have seen too many people put their down payment for a house into a 'top project' only to leave dejected in the bear market's cold.
My approach: Only invest spare cash that you can afford to lose. I set a strict rule for myself: investment capital should not exceed 10% of liquid assets, and never borrow. True wealth freedom starts with taming greed.
Step two: Upgrade your thinking from 'gambling' to 'researching'.
Bitter lessons: I once followed the hype for a popular 'animal coin' just because KOLs shouted about it loudly. As a result, the project team ran off with the funds, and the token's value went to zero. The market noise is deafening; independent thinking is the only safeguard.
My research checklist:
Deep dive into white papers: Real demand or pseudo-concept? Is the team background verifiable? (Beware of anonymous teams)
On-chain tracking: Use tools like Etherscan to check large holders' positions and fund flows, beware of 'whale manipulation'.
Community observation: Is it rational discussion or a FOMO frenzy? Genuine value projects often have a constructive atmosphere.
Learning against the trend: Research undervalued projects during bear markets; research during bull markets is often swayed by emotions.
Step three: Anti-human nature operation—turning 'not trading' into muscle memory.
The harsh truth: Frequent trading is a wealth crusher for retail investors. I once FOMO'd into a surge and then panicked sold during a drop, perfectly realizing 'buy high, sell low'.
My strategy:
Discipline in dollar-cost averaging: Regardless of ups and downs, buy BTC/ETH and other core assets at fixed times and amounts every month to smooth costs.
Profit-taking plan > Stop-loss plan: Set profit targets in advance (e.g., double your investment) to let profits run, rather than be scared off by pullbacks.
The 'shutdown' method: In extreme market conditions, close trading software to avoid emotional trading. Sometimes, doing nothing is better than doing something chaotic.
Step four: Embrace regulation—not as shackles, but as a moat.
Key turning point: I was once resistant to regulation until I witnessed a certain exchange collapse, leaving users with nothing. Now I realize: compliant platforms, transparent audits, and tax planning are the foundations of long-term survival.
My choice:
Only choose licensed mainstream exchanges (e.g., Coinbase, Kraken), and stay away from the enticing high-interest 'shady platforms'.
Value self-custody: Transfer large assets to hardware wallets (e.g., Ledger), private keys mean sovereignty.
Face taxes calmly: Record every transaction and declare legally. Earning money openly and honestly allows for a peaceful sleep.
Are you ready to become the 'minority'?
The crypto space is never short of dazzling stories, but true winners are often those who maintain discipline amidst the noise and keep their cool amidst the frenzy. Wealth doesn't flow to those who chase it, but to those who deserve it—those deserving of the knowledge, patience, and temperament.
The regulatory storm is reshaping the rules of the game; the next bull market will only belong to those who are prepared.
Follow Shen Ce and leave a comment 'survival guide' in the comment section to get my organized (pitfall list: 12 hidden traps that newbies in crypto are most likely to fall into)—some lessons you shouldn't have to experience.