"Novices die from chasing highs, veterans die from bottom fishing, and experts die from leverage." This saying circulating in the crypto space reflects countless people's blood and tears history. I've been in this circle for five years, witnessing many who became rich overnight only to return to zero instantly. Today, I'm not discussing technical analysis or project prospects, just the 8 most practical survival rules—these are lessons learned from hard-earned money.
One, don't bet your entire fortune; keep enough 'burial money.'
At the peak of the 2021 bull market, my cousin invested 300,000 he had saved for his wedding into a certain altcoin. He encountered a regulatory storm, the project team fled, and his money was gone. Now 28, he's delivering takeout in his hometown to pay off debts.
The bloody truth: Crypto market fluctuations are more thrilling than roller coasters. Bitcoin can rise or fall by 20% in a day, and altcoins can drop to zero in minutes. No matter how optimistic you are about a project, always invest only spare money—money that won’t affect your life if you lose it. It’s recommended to invest no more than 10% of total assets at once and keep total positions below 50%.
Two, don't trust 'experts' calling shots; they may be poorer than you.
Last year, a so-called 'crypto influencer' shouted in a livestream that a certain dog coin would surge 100 times. I followed and bought 50,000, only for the project team to run away with the funds the next day. Later, I found out this guy was a debtor gambler, making money by fooling his fans to pay off debts.
Scam prevention guide:
Those who truly make money quietly accumulate wealth and do not flaunt their earnings every day.
Anyone who says 'guaranteed profit' or 'certain profits' should be blocked immediately.
Don't touch projects you can't understand, no matter how many people recommend them.
Three, leverage is a drug; 99% of people die from liquidation.
I know a trader who used 10x leverage to go long on Bitcoin in 2020, turning 100,000 into 2 million. After becoming overconfident, he increased to 50x leverage, only to encounter the 312 black swan event, wiping his account to zero in 30 minutes, and he owed the exchange 200,000. Now he's still driving for ride-sharing to pay off debts.
Brutal data: According to exchange statistics, 95% of leveraged investors will be liquidated within 3 months. Even if you guess the direction right 9 times, one wrong guess can lead to ruin. Remember: living long is 100 times more important than making quick profits.
Four, don't be a 'greater fool'; learn to take profits.
At the end of the 2018 bull market, my colleague didn't sell Bitcoin at 20,000, insisting on waiting for 30,000. When the bear market came, the price dropped to 3,000, and he had to cut losses at 80%. Now, at every gathering, he laments: 'If only I had sold back then...'
Practical tips:
Set clear profit-taking points (for example, withdraw after a 50% profit).
Sell in batches; don't expect to sell at the highest point.
The more frantically prices rise, the more you must remind yourself of the risks.
Five, hoard coins in a bear market, sell coins in a bull market; reversing this will lead to losses.
During the 2022 bear market, I spent 30,000 to buy one Bitcoin, and friends laughed at me for being a 'fool.' This year, with the bull market arriving, I sold it for 60,000 and netted 300,000. Those who rushed in at the bull market peak are now generally stuck with losses of over 30%.
Market rules:
A bear market (when prices are sluggish) is a period for positioning; dare to buy when no one wants it.
A bull market (when everyone is discussing it) is a harvesting period; exit during the frenzy.
Remember: when others are greedy, I am fearful; when others are fearful, I am greedy.
Six, don't put all your eggs in one basket, but don't spread too thin either.
I have a friend who bought 50 different altcoins in 2021, and as a result, 90% went to zero. The remaining 10% earned didn't even cover the losses. Now he only invests in mainstream coins like Bitcoin and Ethereum, and instead earns a stable 20%-30% each year.
Allocation suggestions:
70% of funds in Bitcoin and Ethereum (strong risk resistance).
20% in promising new public chain/Layer 2 projects.
10% in high-risk altcoins (even if it all goes to zero, it won't hurt).
Seven, don't trust 'insider information'; 99% of it is a scam.
Last year, a project team approached me to collaborate, claiming they had 'insider quotas' that guaranteed a 5x return in 3 months. I pretended to be interested to extract the insider info: they planned to launch 10 air coins simultaneously, using the funds from the latter to prop up the former—a typical Ponzi scheme.
Pitfall prevention guide:
Anyone claiming 'insider information' is 100% a scammer.
Check project background: see if the team has a public track record and if the code is open source.
Check community engagement: real projects will have developers continuously updating.
Eight, don't rush to recover losses; a collapsed mindset will lead to death.
When I first started trading, there was a day I lost 20,000, and I was as anxious as an ant on a hot pan. The more anxious I became, the more chaotic my actions, resulting in an additional loss of 50,000. Later, I set a rule for myself: if I lose more than 10% in a single day, I will immediately stop trading for a week. This habit saved me from countless fatal mistakes.
Psychological preparation:
Treat losses as 'tuition' rather than 'disasters.'
Record your trading reasons daily and review mistakes regularly.
Be more vigilant during continuous profits; the market can slap you at any moment.
The crypto world is not an ATM; it's a magnifier of human nature. Here, your greed, fear, and arrogance will be amplified exponentially. Those who truly make money are not the smartest but the ones who understand market respect and control their desires. Remember these 8 iron rules, and you might survive a few more years in this cannibalistic market—survival is the greatest competitiveness.
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