In my first two years of trading, I lost half the down payment for a house. Watching my account balance reset to zero again and again, I often wondered while smoking on the balcony at midnight: is this industry really unsuitable for ordinary people?
It wasn't until the third year that I grasped the patterns of 'being cut' that I suddenly realized—the core of making money in crypto isn't finding bull coins, but first learning not to be cut. Today, I'm revealing the three survival methods and eight iron rules that can help those who understand them lose at least 100,000 less.
One, the harsh reality of crypto: 90% of people are giving money to these 5 traps.
I've seen too many families fall from stability into despair due to trading. Ultimately, they all fell into the same trap: always thinking they are part of the lucky 10%. But the reality is, the 'scissors' in the crypto world are sharper than you think. If you step into two out of these five traps, you can basically say goodbye to profits.
1. The 'Ponzi scheme' of operators: the crazier the rise, the worse the fall.
Luna fell from $119 to $0.0001 in just 7 days, and FIL dropped from $238 to $5 in two years—before these coins crashed, which one wasn't touted as having 'thousandfold potential'? The operators’ tactics are always the same: first, they use stories to attract buyers, then suddenly dump when retail investors are heavily invested, leaving no opportunity for you to cut losses. Remember, any coin without sustainable value creation is more dangerous the higher it rises; what you see as 'trends' might just be the operators' unloading roadmap.
2. The 'dark box operation' of exchanges: your money may not be your money
Before the collapse of FTX, it was still one of the top three exchanges globally. When it blew up, user assets directly turned into 'platform IOUs'. Not to mention those small platforms that don't even have licenses: either they suddenly restrict withdrawals, or they use the excuse of a 'hacker attack' to empty your coins, then blame it on 'force majeure'. Two years ago, I stored 50,000 USDT in an unknown exchange, and when the platform ran away, I couldn't even find customer service. This is a bloody lesson: the high returns of small platforms are essentially paying interest with your principal.
3. The 'leverage meat grinder' of contracts: 10 winning trades can't compensate for 1 liquidation.
There are always people who think 'playing contracts can quickly recover losses', but I've seen too many: they used 10x leverage to win 9 times, then got wiped out on the 10th by a single spike. Leverage not only amplifies profits but also amplifies greed and fear—while you think you're 'cutting losses and taking profits', the platform can see your positions. At crucial moments, a single spike can precisely liquidate your position. For 99% of retail investors, contracts aren't tools; they're suicidal weapons.
4. The 'group chat scam' of altcoins: every transaction you make is clear to the operators.
'Teachers' flaunt profit screenshots in the group, while 'pumps' cheer for 'imminent listings on the three major exchanges', and you impulsively buy tens of thousands of dollars worth of 'new coins'—what's the result? They list on an unknown small platform, spike up at opening, then crash down. You can't even sell. These operators have backend data; when you add to your position, they dump, and when you cut losses, they pump—your operations are all under their watch. This isn't investing; it's having your head pushed down to be harvested.
5. The so-called 'technical gurus': those who teach you to make money are actually making money off you.
Those 'signal groups' or 'trading courses' that charge tens of thousands are 90% scams. They either get you to buy their holdings at a high price or cause you to liquidate by calling for opposite trades, then tell you 'your mindset is poor'. I once paid 20,000 in tuition to join a group and ended up losing 150,000 following their trades, only to later realize that the so-called 'guru' couldn't even interpret candlestick charts.
Two, the three core steps from loss to profit: survive, so you can wait for opportunities.
After two years of losses, I finally understood that the prerequisite for making money in crypto isn't 'catching the next bull coin', but 'not being eliminated by the market'. These three steps sound simple, but less than 10% of people can actually achieve them.
Step one: enter with a 'survival position', never let yourself fall into a desperate situation.
My position iron rule is: the money invested should not affect your life, and no single coin's holding should exceed 30% of your total funds. For example, if you have 100,000 in principal, you can invest a maximum of 30,000 in one coin; even if it goes to zero, it won’t hurt too much. In the first two years, I lost heavily on an altcoin and had to borrow for living expenses; once my mindset broke down, all my operations were wrong. Remember, money management is 100 times more important than selecting coins.
Step 2: Use 'dumb methods' to avoid traps, more useful than learning 100 techniques.
I've tried countless indicators and strategies, and ultimately found that the most effective is the 'method of elimination':
Do not trade on small platforms with daily trading volumes below 100 million USDT;
Avoid altcoins with market capitalizations below 1 billion USDT and anonymous teams;
Keep contract leverage to a maximum of 3 times, and position size should not exceed 5%;
If you see 'group chats and signals' or 'guaranteed returns', blacklist them immediately.
These rules may seem rigid, but they can help you avoid 80% of traps.
Step three: use the RSI indicator for swing trading, simple enough for beginners to grasp.
You don't need to learn complex techniques for short-term trading, just understand RSI.
When RSI is below 30, the coin price is likely oversold; you can test with a small position;
When RSI is above 70, the coin price is likely overbought; remember to reduce your position and take profits;
Combine with 4-hour candlestick charts for higher accuracy.
The advantage of this indicator is its 'anti-human nature'—it won't let you chase after spikes or sell on dips, but reminds you to stay calm when others are greedy and gives you signals when others are panicking. I used this method for swing trading, and my returns last year were 40% higher than just holding cash.
Three, eight iron rules: if you can follow 5 of them, you've surpassed 90% of retail investors.
Don't trust 'get rich quick myths': if someone says 'follow me to double your money', they are either a scammer or trying to offload their holdings onto you.
Avoid 'new coin launches': 90% of new coins peak at launch, and you won't have a chance to grab any of the remaining 10%.
Cut losses like slicing meat: if a single loss exceeds 10%, you must exit. Hesitating once could lead to being trapped for six months.
Learn to 'run in steps' when making money: sell 1/3 after a 20% rise, sell another 1/3 after a 50% rise, and set a stop-loss for the remaining.
Always keep 50% cash: during a market crash, cash is your bullet, allowing you to buy the chips that others are selling off.
Don't buy coins based on 'positive news': when good news lands, it often turns into bad news; by the time you see the headlines, the operators have already started unloading.
Check the market only 3 times a week: the longer you stare at the charts, the easier it is to be swayed by emotions; frequent trading is the root of losses.
Remember 'the crypto world is unpredictable': today's leader might crash tomorrow; never put all your eggs in one basket.
After 5 years of trading, my biggest insight is: this industry doesn't make money from luck, but from cognition and discipline. If you can avoid the pitfalls and learn simple arbitrage methods, making a profit isn't that difficult.
If you've stepped into the traps mentioned above, or have questions about the RSI indicator, feel free to discuss in the comments. The crypto world is never short of opportunities, what's lacking is the ability to avoid being cut.#稳定币监管风暴 #以太坊突破3700