The crypto world is filled with opportunities and risks, especially for newcomers. Learning how to survive and profit in such a volatile market is a discipline that requires constant learning and practice. Here are the ten iron rules of the crypto world that newcomers must keep in mind to navigate the market smoothly.
1. The popular coins in a bull market tend to drop the fastest.
Coins that are heavily hyped, especially those with significant control over the market, often experience bubbles that burst quickly. The more a coin attracts a large number of retail investors to chase after it, the greater the risk. It’s like blowing up a balloon; the bigger it gets, the quicker it pops. Popular coins in a bull market are often favored by short-term speculators, but they are also the traps that can lead to significant losses.
Recommendation: Do not blindly chase after surges, especially those coins that have increased significantly in a short time. Stay calm to avoid becoming a 'bag holder'.
2. The tricks of altcoins are quite similar. The strategy of altcoins usually involves first crashing the price to create panic, then slowly raising it to attract retail investors, and finally switching tactics to continue harvesting profits. This trick is often successful, and newcomers are easily caught in it. Recommendation: Be psychologically prepared when dealing with altcoins; do not be deceived by short-term price increases, and do not easily take large positions.
3. The long-term trend of the market is upward. Although there are severe short-term fluctuations in the crypto world, if you extend the timeline, the overall trend is upward. The historical performance of mainstream cryptocurrencies like Bitcoin and Ethereum has proven this. Recommendation: If you are a long-term investor, do not be scared by short-term ups and downs. Be patient and hold quality assets; time will reward you.
4. Potential coins are not hyped. Coins with real potential often remain unnoticed at the bottom, with few mentioning them. On the other hand, coins that are crazily hyped are often tools used by manipulators to reap profits. Low-key coins may quietly explode at some point. Recommendation: Pay more attention to projects with solid technology and reliable teams that have not yet been heated in the market; they may be the dark horses of the future.
5. Be cautious of newly listed coins. Newly listed coins, especially those with wild price fluctuations, are often traps designed by manipulators. These coins usually lack real value support and are merely aimed at harvesting profits. Recommendation: For new coins, especially those with massive initial volatility, stay alert and do not enter easily.
6. Price fluctuations are common. Buying leads to drops and selling leads to rises; this is completely normal in the crypto world. The market is extremely volatile, and short-term fluctuations do not fully reflect a project's value. Recommendation: Maintain a good mindset and do not panic due to short-term volatility. Develop a sound investment strategy and execute it strictly.
7. The strongest rebounds do not indicate potential. The coins that rebound the hardest are often not truly promising but rather speculative plays that have been hyped up. The price increases of such coins usually lack fundamental support; they rise quickly and fall just as fast. Recommendation: Do not be deceived by short-term surges; coins with real potential usually show relatively stable fluctuations and an upward long-term trend.
8. Beware of being cut when there is a sudden pullback. If the coin you bought suddenly retraces after a price increase, it may be a signal that manipulators are starting to offload. Manipulators typically attract retail investors by raising prices, then sell at high levels. Recommendation: When encountering a sudden pullback, take profits or cut losses promptly to avoid becoming a 'bag holder' for manipulators.
9. Coins that explode in the second half. In a bull market, coins that performed poorly in the early stages may explode in the latter half with several times the increase. These coins are like marathon runners, building strength in the early stages and exerting force later. Recommendation: Do not overlook those coins that performed modestly in the beginning but have solid fundamentals; they may be the dark horses in the latter part of the bull market.
10. Coins that have been sideways for months may explode. In a bull market, some coins that have experienced several times the increase may trade sideways for months. This sideways movement usually indicates that manipulators are gathering strength, waiting for the next opportunity to explode. Recommendation: For coins that have been trading sideways for a long time, stay attentive; they may be the protagonists of the next market cycle. Finally, to summarize: Two key points for survival in the crypto world. If you feel confused or lost in your operations, remember the following two points: 1. Take action decisively: Opportunities are fleeting, and decisive action is needed to seize them. 2. Stay online: Information in the crypto world changes rapidly, and timely access to the latest news and reactions is crucial. The crypto market is full of challenges, but by mastering these iron rules and maintaining calm and rationality, you can find your opportunities in this market. Remember, investing is a marathon, not a sprint; patience and strategy are the keys to success!
