In cryptocurrency trading, a coin can potentially surge 100 times or plummet to zero in a single day. If you don't know how to avoid pitfalls and only chase high returns, you may become a 'stepping stone' for others' profits—trading is often zero-sum; what you lose is what others gain. Beginners often profit early on luck but end up losing everything in contracts based on 'skill'.
10 rules for survival
Patience is fundamental: Bitcoin follows a four-year cycle; don't focus on short-term candlesticks, as wealth does not come through haste.
Avoid chasing highs and selling lows: Market sentiment can easily reverse during euphoria; 'good news' may be bait for unwary buyers. Entering in batches is safer.
Be cautious with poor coins: Long-term holding is only suitable for mainstream coins (like Bitcoin and Ethereum); most tokens are unlikely to survive a decade.
You must cut losses: Ten wins can't compensate for one total loss; cutting losses is a lifeline.
Stay away from high leverage: Under survivor bias, more people get liquidated; beginners should avoid this.
Don't blindly follow others: DYOR (Do Your Own Research); relying on others' directions will eventually lead to losses.
Never borrow money to trade cryptocurrencies: Losing someone else's money can lead to a deep debt trap.
Avoid going ALL IN: Mainstream coins should be your foundation; other investments should not exceed 20% of your total assets.
Avoid 'buying the rise and holding the fall': Quality coins need to be held long-term; do not trade based on short-term fluctuations.
Beware of pyramid schemes / Ponzi schemes: 'Guaranteed profits' are often scams.
The cryptocurrency space presents both opportunities and traps; survival depends on awareness and self-control; avoiding pitfalls is the first step to discussing the future.
