Want to survive long-term in the volatile crypto world? Share truly valuable experiences, the core is just two words: Restraint.
Iron Rule One: Only use idle money, guard it fiercely!
Invested funds must be idle money that losing does not affect your living. Never use living expenses, medical funds, or borrow money! The market is cruel; surviving first allows for future discussions. Respect the market.
Iron Rule Two: Don't touch what you don't understand, cognition is king!
Returns cannot exceed cognition. Never invest real money before thoroughly researching project technology, applications, teams, competition, and data. Use simulated accounts to feel the difference in mindset, but it is not the real battlefield.
Iron Rule Three: When news lands, beware of cashing out!
After major good news is announced, heightened emotions are often accompanied by expectation cashing out or distribution risks. Be extremely cautious when chasing prices, combining valuation positions and technical judgments, and decisively locking in profits is often a good strategy.
Iron Rule Four: As long holidays approach, proactively avoid risks!
Assess and reduce risk exposure before major holidays. Sudden drops in liquidity can easily lead to abnormal fluctuations. Rest assured, stay away from noise, and avoid unnecessary unexpected risks.
Iron Rule Five: Medium to long-term strategy, win in batches!
Precise timing is extremely difficult. Buying at low levels + selling at high levels can smooth costs, optimize mindset, and retain flexible funds. Do not seek extremities, aim for stability.
Iron Rule Six: Key for short-term trading, only trade liquid assets!
Only select active cryptocurrencies with huge trading volume and excellent depth. Illiquid coins have high slippage and are difficult to offload; liquidity traps are fatal in short-term trading. Avoid them resolutely, no matter how tempting!
Iron Rule Seven: Be cautious during sharp declines, discern the root cause!
During a sharp decline, the priority is to calmly analyze the reasons: systemic risk? Industry negatives? Or a fundamental collapse of the project? The first two need to be evaluated for value, while the latter must be avoided! 'Catching falling knives' carries great risk; tread carefully into the abyss.
Iron Rule Eight: Strict stop-loss, protect the principal!
Making mistakes is normal. Pre-set stop-loss points (price levels or ratios), and execution must be decisive! Small losses and admitting mistakes are lifesavers. Clinging to a lucky mentality can lead to irretrievable deep losses and zero risks.
Iron Rule Nine: Pursue precision in technology, simple and effective! Focus on one or two core indicators (like MACD/RSI), thoroughly understand their logic and application scenarios. Always combine price trends (K-line patterns, key levels) and trading volume for analysis. Too much leads to indigestion.
Ultimate Principle: Unity of knowledge and action, restraint above all!
Overcoming Greed (FOMO): Do not chase prices at high levels out of fear of missing out. Opportunities are often present, but capital is hard to recover.
Overcoming Fear (FUD): Do not sell at low prices due to market panic. Value must be proven against common thinking.
Overcoming Impulsiveness: Reduce emotional, unstrategic frequent trading. Patiently wait for high certainty opportunities. Fees, slippage, and mistakes are silent costs.
Summary:
The crypto world is unpredictable, and the 'Holy Grail' is hard to find.
Continue learning to expand cognitive boundaries.
Proceed with caution and execute risk control (idle money + stop-loss + position + liquidity).
Maintain independent rationality amid greed and fear.
Incorporate 'restraint' into every decision.
Enhance cognition, strictly adhere to discipline, focus on core principles. This is not a shortcut to instant wealth, but a solid path to long-term survival and steady progress in the market.
