Having been in the crypto space for eight years, the traps I’ve encountered could circle my neighborhood three times.

Every word I say today is hard-earned—these aren’t just fancy patterns on a K-line chart, but rules established through real money.

First, the market never accommodates what 'should be.' In 2018, I met my friend Xiao Li, who insisted that ETH would definitely break $5000, and he mortgaged his car to go all in, only to get liquidated at $800.

In trends, there is no 'must,' only 'might.' Now, I always ask myself with every trade: Can I withstand a 60% drop? If the answer is uncertain, I absolutely don’t move.

Second, leverage is a double-edged sword. 5x leverage can turn $20,000 into $100,000, but it can also reduce $100,000 to $20,000. My former colleague, Lao Zhang, played with 20x leverage for short-term trades, making $150,000 in two days, but on the third day his phone died and he didn’t close his position, waking up to find his account only had the transaction fees left.

Once leverage exceeds 3x, you must handle it like a scalpel—steady, precise, and ruthless; even a slight tremor can lead to losses.

Third, being in cash is a hundred times harder than being fully invested. In a volatile market, 90% of people can’t resist opening positions, like trying to wear a cotton jacket in the scorching summer.

During the bear market in 2021, I stayed in cash for four months, watching others in the group share their bottom-fishing screenshots, but I held firm and eventually bought at the bottom with $25,000. Sometimes, not making a trade is the real skill.

Fourth, insider information is a double-edged sword. Those who claim to have 'special channels' are either making money off your transaction fees or trying to pass the buck onto you.

In 2020, a so-called 'big shot' said a certain coin would be listed on Binance, and a bunch of people rushed in, only to find it was a scam coin, and the founder ran away.

In recent years, while mentoring students, what I’m most pleased with isn’t how much money they’ve made, but that they’ve ingrained the rules into their very bones. Last year, there was a girl who started with $5,000 and strictly adhered to the 'trend cash position method,' resisting the urge to trade during volatility, and when the trend came, she acted decisively, now having $98,000 in her account.

There’s also a guy who had lost down to just $4,000, but learned 'pre-emptive stop-loss' and set a baseline for every trade, rolling it up to $72,000 in six months.

Ultimately, what you earn in the crypto space isn’t money from the market, but money from understanding. The more respect you have for the market, the more secure your account will be.

Those who followed me from losses to gains didn’t rely on luck, but on thoroughly digesting and acting on the six words: 'Don’t be greedy, don’t gamble, don’t wait.'

If your positions are currently stuck, or you’re confused looking at the K-line, feel free to reach out to me at @大师兄说币 .

Some pitfalls, others have already stepped into for you, so don’t fall into them again.