Words of wisdom: These painful experiences can save you three years of detours.
"Bro, can this operation make me rich?"
"Big shot, can I go all in on this coin?"
"It's over, what should I do if I'm stuck again?"
Every day, countless newbies in the group ask these questions. Watching them panic like ants on a hot pan, I see myself from five years ago—someone who rushed into the crypto circle with 5,000 yuan and lost half in three days. Today, I want to talk about the pitfalls I've encountered, the money I've made, and the survival rules earned with real hard cash.
One, don't treat the crypto circle as a casino: it is a market of "legal robbery."
Many people rush into the cryptocurrency circle upon hearing the myth of "someone turning 10,000 into 10 million." But let me pour a bucket of cold water: such stories are like winning the lottery; they are just for fun, don't take them seriously.
I have seen too many newbies invest their down payment for a house, wedding gift money, or even their parents' retirement funds. What happened? Either they sold at a loss during a crash or endured a long bear market until they turned gray.
Old investors' heartfelt words:
"You can enter the crypto circle, but you can only use three types of money:
Money that will not be needed in three years.
Money that won't affect your life even if you lose it.
Money you can still laugh about even if it's all gone.
In the 2018 bear market, I witnessed an older brother invest his medical money in a scam coin. When the project team ran away, he cried outside the exchange for an entire night. Since then, I have understood: in the crypto circle, surviving is more important than making money.
Two, don't chase the rise and kill the fall: You can never outrun the machines.
Newbies love to "chase the rise and kill the fall"—seeing a coin suddenly surge by 10%, they rush in; but as soon as they buy, it starts to plummet, scaring them into selling at a loss.
I call this the "Investor's Triple Play":
Seeing a surge → Heart racing.
Impulsive buying → Mistaken clicks due to shaky hands.
Selling at a loss during a crash → Cursing while leaving the group.
Real case:
In May 2021, Shiba Inu (SHIB) suddenly surged by 300%, someone in the group shouted, "If you miss this wave, you’ll wait ten years," and my little cousin who just entered the market immediately went all in with 20,000 yuan. The next day, the project team cashed out, and the price plummeted by 90%, he fell into depression for three months.
Old investors' survival rules:
"If it rises by 5%, don’t get jealous; if it falls by 10%, don’t panic. Set your stop loss and take profit, and let the machines trade for you."
Now I use the exchange's "conditional order" feature: for example, sell 10% automatically if Bitcoin rises to $50,000, and buy 5% automatically if it falls to $45,000. Although the gains are small, I sleep well!
Three, don't believe "expert" prophecies: They could be poorer than you.
The crypto circle is full of "experts"—well-dressed analysts, jargon-spouting technicians, and internet celebrities who often shout about "ten-thousand-fold coins."
I have seen the most ridiculous thing: a certain "master" shouted in a live stream, "If you don't buy SOL now, you won't be able to afford a house in ten years," and as a result, SOL dropped from $200 to $80, and his fan group turned into a rights protection group.
Old investors' skill in reading people:
Those who show off their earnings every day → Definitely fake.
Those who guarantee "only profit, no loss" → Absolutely scammers.
Those who want you to join private groups for guidance → Want to cut your leeks.
Those who only recommend without buying themselves → Block them immediately.
Blood and tears lessons:
In 2022, I followed a "famous analyst" to buy NFTs. He said this project "will definitely grow 100 times." I scraped together 50,000 yuan, but the project team ran away with the money, and that analyst is still teaching people how to trade crypto on Douyin!
Four, don't touch contract leverage: It's "legal suicide."
Contract trading is like "heroin" in the crypto circle—once you try it, you can't quit until it drains you dry.
I have a friend who was originally a very honest programmer; after getting into contracts in 2021, he changed completely:
Watching the market all day without eating or drinking.
Dreaming at night, shouting "Go long, go short."
Lost 800,000 in three months.
Eventually divorced and sold the house to pay off debts.
Math lessons for old investors:
Assuming you have 10,000 yuan:
Playing spot: Lose a maximum of 10,000.
Playing 10x contracts: Lose everything if it drops by 10%.
Playing 100x contracts: Lose everything if the price fluctuates by 1%.
Even scarier, exchanges may intentionally create "spike" market conditions—when you are about to be liquidated, the price suddenly drops or spikes, leaving you no chance to close your position.
Advice:
"Stay away from contracts, cherish life. If you want to experience excitement, it’s better to go bungee jumping—at least bungee jumping ends quickly, while contracts can be agonizingly drawn out."
Five, don’t put all your eggs in one basket: Diversifying your investments is not cowardice; it's wisdom.
A common mistake for newbies is going "all in"—seeing a coin rise well, they bet their entire fortune on it. As a result, the project team runs away, the exchange is hacked, or they face regulatory crackdowns, leading to total loss.
Asset allocation table for old investors:
Asset class allocation: 40% Bitcoin as digital gold, risk-averse; 30% Ethereum as the ecological leader, long-term growth; 20% mainstream coins for swing trading, making profits from price differences; 10% cash for bottom fishing in bear markets, acting decisively when opportunities arise.
Practical tips:
I will also divide mainstream coins into 5 parts, buying one part each time it drops by 10%. For example, if Ethereum drops from $3000 to $2700, I will buy 20%; if it drops to $2400, I will buy another 20%—this way, I can lower the cost without exhausting my resources all at once.
Six, don't let FOMO emotions control you: Patience is the scarcest quality in the crypto circle.
FOMO (Fear of Missing Out) is the biggest killer in the crypto circle—when you see others making money, you feel the fear of "if I don’t buy now, it will be too late," leading to irrational decisions.
Old investors' "anti-FOMO" mindset:
When you see a surge, first ask yourself three questions:
What problem does this project solve?
Is the team's background reliable?
Is buying now a rational decision or an emotional impulse?
Formulate a trading plan and stick to it strictly:
Buy only when the target price is reached; don’t buy if it’s not.
Sell only when the target price is reached; hold if not sold.
Regularly "stay away from the market":
I have one day a week when I don’t look at the market, going fishing, playing ball, or spending time with family. You will find that:When you don’t care about money, money will instead come to you..
Seven, don't ignore security: Your private key is more important than your life.
There’s a saying in the crypto circle: "If it’s not your key, it’s not your coin." Many people end up handing over their hard-earned money due to poor management.
Old investors' safety checklist:
Exchanges ≠ Banks: Large exchanges can also be hacked (remember the Binance hacking incident in 2019?)
Cold wallets > Hot wallets: Store most of your assets in hardware wallets (like Ledger, Trezor)
Private key backup: Write it down with a pen on paper, divide it into three parts and store them in different places.
Beware of phishing websites: Always check if the URL is correct before logging into an exchange.
Painful lessons:
In 2020, a friend of mine clicked on a fake Binance link, and as a result, his account was drained. 100,000 yuan was wiped out in an instant. Since then, I have developed a habit: any transfer-related operations must be confirmed by phone with the other party.
Eight, let me give you some harsh truths.
Don't think about getting rich quickly: In the crypto circle, an annualized return of 20% is already better than 90% of people.
Learning is more important than making money: Spending time researching projects is 100 times more useful than staring at the market every day.
Health is more important than wealth: I have seen too many people develop stomach problems, hair loss, or even depression from trading cryptocurrencies.
Connections are more important than code: Joining reliable communities can save you a lot of detours.
Happiness is more important than anything: If trading makes you lose sleep, it's better to quit early.
$$$BTC
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