Survival Rules in the Crypto World: 10 Painful Experiences to Help You Avoid Losing Millions
Having been in the crypto space for years, I've seen too many people lose all their capital and leave. Today, I share these 10 golden rules that can help you avoid 90% of the rookie traps.
1. A strong coin's sharp drop is an opportunity
A strong coin that has fallen for 9 consecutive days? Don't panic, this could very well be a golden pit. Remember: high-quality assets must rebound after a sharp drop.
2. Be cautious after two consecutive days of gains
If any coin rises sharply for two consecutive days, reduce your position by one-third first. A rapid rise must be followed by a correction; don't wait until profits are lost to regret it.
3. The 7% rule
A coin that surges 7% in a single day often has inertia to rise further the next day. But if it can't break through the previous high, take your profits immediately.
4. Refuse to chase highs
Seeing a surge and feeling FOMO? Hold back! Wait for a pullback to the moving average before entering; otherwise, you're just a bag holder.
5. Zombie coins get the death penalty
Coins that have been stagnant for 6 days should be blacklisted immediately. The most expensive thing in the crypto world is the cost of time.
6. Capital preservation first
If you can't break even the next day after buying? Cut your losses immediately! Don't wait for losses to widen before selling.
7. The three-day rule
For coins in a rising trend, a pullback on the third day is an excellent buying point. But by the fifth day, you must start reducing your position.
8. The secrets of volume and price
Low position breakout with high volume = smart money entering
High position with high volume stagnation = smart money exiting
9. Trend is king
3-day rising = short-term opportunity
30-day rising = medium-term hold
120-day rising = long-term steady profit
10. Mindset determines everything
Small capital relies on strategy for recovery
Large capital relies on discipline to maintain
(A painful truth: 90% of those who go bankrupt lose to themselves)
Remember: in this market, surviving longer is more important than making quick profits. With these 10 rules, while they can't guarantee riches, they can help you steadily outperform the majority of retail investors.