The cryptocurrency market is always full of risks but also full of opportunities, especially for small investors. Many are tempted by large leverage, 'hundred times coins' or attractive news, but in reality, most will have to pay the price in transaction fees and losses. Below are 10 basic principles to help small capital survive and grow in this volatile environment.

  1. Do not buy 'the dip' after 8 consecutive days of decline
    When the market has been declining for several consecutive days, the crowd's mentality often becomes panicked. At this point, buying more is not necessarily an opportunity, but often a 'free discount' due to panic selling. Patience is required to wait for the market to stabilize before taking action.

  2. Not being lured by 'good cosmic news'
    If a project claims 'earth-shattering good news' but has risen for 2 consecutive days and shows green candles, it is advisable to reduce the position by 30%, keep the profits, and allow the market to correct without being swept up in the rising momentum.

  3. For coins that are rising too hot (>7% in a day)
    It is advisable to patiently observe the next day, avoiding immediate purchases when prices are surging. Statistics show that many coins tend to drop back after a strong increase, so waiting for a pullback is safer.

  4. Avoid recently popular coins
    For the first 'trend' coins, it is advisable to observe for at least two weeks to see new investors competing to take profits, and only then evaluate based on fundamentals. Prices often drop by half once the initial frenzy is over.

  5. Eliminate low volatility coins
    Coins that fluctuate less than 3% for 5 consecutive days usually do not generate short-term profits. They should not be kept on the watchlist or take up capital; focus energy and money on more promising opportunities.

  6. Adhere to important moving averages

    • If the 3-day moving average decreases → switch to holding cash.

    • If the 30-day moving average decreases → sell everything.

    • If the 80-day moving average decreases → temporarily halt trading, take time to rest or do further research.

  7. Cut losses in time
    If there is no profit after one day of buying in, cut losses immediately. Holding onto losing positions for too long only increases risk and reduces capital efficiency.

  8. Limit high leverage
    The crypto market can easily tempt with hundred-fold leverage, but this is also the fastest way to lose capital. It is advisable to prioritize stable trading, manage risks, and preserve original capital.

  9. Do not chase FOMO
    Chasing 'hot coins' or hot news will increase costs and significantly risk losing capital. Focus on long-term strategies and well-analyzed opportunities.

  10. Small but stable profits
    The goal is not to 'make a hundred times in one day' but to grow capital steadily over time. Small but certain profits will accumulate into significant results.

In conclusion

The crypto market is not for the impatient or those wanting to get rich quickly. Adhering to principles, observing the market, managing risks, and being patient will help small investors survive and even grow steadily in a volatile environment.