This year, I am 34 years old and have been in the crypto space for a full decade. From staying in hostels for a few bucks a night to casually booking hotels for 2500 yuan; from staring at my account in shock after a liquidation until dawn, to now having stable funds over 8 figures — outsiders always say I’m 'lucky,' but only I know that these are hard-earned lessons; every experience is backed by painful losses.
Today, I will share the 5 iron rules I have summarized over ten years. These are all lessons learned from practical experience, and beginners can follow these to avoid 3 years of detours.
Iron Rule 1: Slow rise, rapid fall? Don’t panic, this is the main force 'secretly accumulating.'
The main force never shouts 'come buy,' it all relies on the trend to signal. For example, if a coin rises slightly every day, even with occasional gentle drops, don’t think it’s 'annoying.' This is actually the main force slowly accumulating chips.
When I was focused on BTC in 2020, I encountered this: it went from $8000 to $10000 over nearly a month, with frequent pullbacks to $9000. Many people in the group sold because they felt it was 'rising too slowly,' only for it to shoot up to $20000 later. I later understood: the main force doesn’t want retail investors to profit, so they 'slowly rise and fall' to wear down patience. Only after retail investors leave will they truly push up the price.
Iron Rule 2: Quick drops and slow rises? Be cautious! This is the main force 'dumping while trapping.'
Conversely, if a coin suddenly drops sharply (for example, a 15% drop in one day) and then rises sluggishly, taking a few days to recover — don’t think 'it’s bottomed out and you can buy the dip.' This is the main force offloading.
In 2021, I fell into the pit of SOL: it dropped sharply from $250 to $200, and it took a week to rise to $220. I thought it was 'stable' and jumped in, only for it to drop back to $180. Later, I realized: each small rise was the main force 'selling off small amounts,' dragging it down slowly to trap retail investors looking to buy the dip. The longer it drags on, the harder it will fall.
Iron Rule 3: High volume at the top is not scary; low volume is the 'real danger.'
Many people panic and sell when the price of a coin rises sharply — but there’s really no need. If there’s volume at the top, it means there are still funds willing to take over; the main force needs buyers to offload, and it may not collapse immediately.
What you should really fear is 'a lack of volume at the top': for example, if a coin rises to a historical high but the trading volume is even lower than in previous days, it indicates 'no one is willing to buy.' If the main force dumps, there will be no support, and it will drop like a waterfall. When ETH surged to $1800 in 2022, I noticed the trading volume didn’t keep up, so I decisively liquidated, and it indeed fell to $880.
Iron Rule 4: A single strong bullish candle at the bottom is useless; sustained volume is the 'real bottom.'
When a strong bullish candle appears at the bottom, don’t immediately shout 'the bull market is here' — a single bullish candle is too deceptive; the main force can easily pull it up just to let retail investors take the bait.
Only 'sustained volume' is reliable: for example, if a coin rises with increased volume for three consecutive days, with daily trading volume exceeding the previous day, it indicates real funds are entering the market, not just the main force 'playing theater.' When BTC dropped to $24000 in 2023, it had four consecutive days of increased volume, and I added to my position, which later rose to $31000, securing a solid profit.
Iron Rule 5: Trading coins isn’t about 'seeing logic,' it’s about 'seeing emotions.'
Don’t be superstitious about 'this coin has good logic, it must go up' — in the crypto space, even the best logic is useless if no one believes it. Trading volume is the 'thermometer of market sentiment'; high volume indicates consensus, meaning everyone is willing to buy; without volume, no matter how good the logic, it cannot support the price.
In 2021, I bought a coin that combined 'blockchain + healthcare.' The white paper was incredibly impressive, but the trading volume never increased, and it eventually dropped by 90%. Later I understood: trading coins is essentially 'earning consensus money.' Without consensus, logic is just worthless paper.
Lastly, let me say something straightforward.
If you are still trading coins based on 'gut feelings and luck,' it’s better to pause and ask yourself three questions:
Do you have your own trading system? (For example, when to buy and when to sell)
Do you have a fixed strategy? (For example, how to control positions and set stop losses)
Can you control your hands? (For example, can you resist buying when you shouldn't?)
The crypto space never lacks opportunities; what it lacks is the 'ability to seize opportunities.' If only someone had taught me these things earlier, I wouldn’t have lost so much money. Finding the right people and learning the right things is the first real step to making money — don’t wait until your capital is exhausted before thinking of catching up on knowledge.
Blindly going solo will never bring opportunities. Follow me and I will guide you to explore tenfold potential coins! Top-tier resources!
