#BTC #ETH To survive in the cryptocurrency world, one must rationally face high risks and high volatility. The following six core survival rules are shared:
1. Control risks, never go all in
- Only invest with 'spare money', meaning funds that are not needed in the short term and will not affect your life if lost.
- Do not invest more than 10%-20% of total funds in a single cryptocurrency to avoid betting on a single asset.
2. Reject the fantasy of 'getting rich overnight'
- The cryptocurrency market is highly volatile; high returns come with high risks. Do not easily trust promises of 'guaranteed profits' or 'quick doubling'.
- Be wary of scams disguised as 'digital currencies', which often center around 'referral bonuses' and are essentially frauds.
3. Do your homework, do not follow the crowd blindly
- Understand the underlying technology, application scenarios, team background, etc., of a cryptocurrency before investing, to avoid buying based solely on 'news' or 'hype'.
- Stay away from projects you do not fully understand; not investing in what you do not understand is a basic principle.
4. Set stop-loss and take-profit levels
- Plan exit points in advance: decisively stop-loss if the price drops by a certain percentage (e.g., 10%-20%) to avoid deep losses; take profit at the target level in a timely manner to secure gains.
- Strictly enforce discipline and do not change plans due to 'lucky thinking'.
5. Stay rational, control emotions
- Avoid chasing prices and panic selling: greed when prices rise and panic when prices fall are the sources of losses for most people.
- Learn to make independent judgments during market panic or euphoria, and do not be swayed by emotions.
6. Protect asset safety
- Choose compliant and reputable exchanges, avoid small platforms (which may have risks of running away or hacking).
- Store important assets in offline wallets (e.g., hardware wallets), enable two-factor authentication (2FA), and do not disclose private keys to anyone.
The cryptocurrency market is essentially a high-risk market; the core of survival is 'to stay alive', rather than seeking short-term high profits. Maintain a sense of awe and continue learning to move forward more steadily amidst volatility.
