Recognizing reality: This is not an amusement park
The first lesson in entering the crypto world is to understand that this is not a place for easy money. Many people come in with dreams of getting rich quickly and leave with losses. Those who can truly survive in this market have first recognized a fact: the crypto world is a zero-sum game; if someone makes money, someone else must lose it. Every penny you earn is a loss for someone else.
Basic understanding: Understand the rules of the game
Before you start playing any game, you must first understand the rules. The most basic rule in the crypto world is that supply and demand determine prices. But here, supply and demand are influenced by many factors: policy changes, large trades, market sentiment, technological developments, etc. Price fluctuations can be very severe; it’s common for prices to rise or fall by dozens of percent in a single day. This is why many people are shocked when they come in, as they are not psychologically prepared.
Capital management: The key to survival
No matter how promising a project seems, remember to never invest all your money. A reasonable approach is to divide your funds into several portions and only use a small part each time. Keep some money aside for emergencies, such as buying the dip when prices suddenly fall. Many people lose money not because of poor judgment, but because of issues with capital management; one mistake can wipe out their principal.
Emotional control: The hardest lesson
Watching the numbers in your account fluctuate makes it really hard to stay calm. But emotional decision-making is often the start of losses. Chasing highs when prices rise and panic selling when they fall is typical novice behavior. Experienced traders know to control their emotions and operate according to a predetermined plan, without getting flustered by short-term fluctuations.
Information filtering: Don't be disturbed by noise
There are countless messages in the crypto world every day, making it hard to distinguish between truth and falsehood. Many so-called insider information is outdated by the time it reaches you. Learn to differentiate which information is valuable and which is just noise. Focus on the fundamentals of projects and their technological developments, rather than obsessing over price fluctuations and various rumors.
Learning curve: The necessity of continuous improvement
This market changes too quickly; strategies that worked last year may become ineffective this year. Keep learning, understand new technologies and trends. But also don't blindly chase every new concept, as many are just fleeting hype. It's better to find a few directions that suit you for in-depth research than to know a little about everything but master none.
Risk awareness: Always put it first
Always be clear about the risks you are taking. Don’t be blinded by potential gains; first think about the worst-case scenario and whether you can bear it. High returns inherently come with high risks, this is an eternal truth. The biggest difference between an experienced trader and a novice is their understanding and control of risk.
Long-term perspective: Wisdom to navigate bull and bear markets
The crypto world has obvious cyclicality, with bull and bear markets alternating. Many people only come in during bull markets and leave during bear markets. However, those who achieve significant gains are often those who can navigate through both bull and bear cycles. Be patient; good projects take time to grow, and don’t expect to get rich overnight.
Self-awareness: Find the path that suits you
Lastly and most importantly, understand yourself. Are you suited for short-term trading or long-term holding? Do you prefer the stability of mainstream coins, or are you willing to take risks on emerging projects? There is no one-size-fits-all strategy, only approaches that work for you. You can draw inspiration from others' success stories, but you cannot simply copy them.
Remember, the transition from a novice to an experienced trader is not instantaneous. It is a process of continuous learning, adjustment, and improvement. Stay rational, control risks, and keep learning, and you will survive in this market and have the opportunity for decent returns. But never forget, the first principle in the crypto world is survival, and only then comes profit.
(This content is for the learning and communication of crypto enthusiasts. Please view it rationally, establish the right concepts, and enhance risk awareness. Please click to bookmark or recommend it to those in need.)
