Survival Rules in the Cryptocurrency World: 15 Iron Rules for Navigating Volatility
In the unpredictable world of cryptocurrency, survival is the ultimate victory. There is no revelry for those who rely on luck, only long-term gains for those who strictly adhere to the rules. The following 15 survival rules are key guidelines for navigating market cycles:
1. Capital First: Prioritize safety above all; it's better to miss out than to take unnecessary risks. Ignoring the risks of ambition will ultimately backfire on all gains.
2. Avoid Greed, Seek Stability: Give up the fantasy of becoming rich overnight; accumulating small profits is better than making big bets. Restraining desires allows you to seize real opportunities.
3. Diversify to Hedge: Use a diversified asset portfolio to spread risk and keep over 20% in cash. When the market turns, liquidity is a lifeline.
4. Strictly Follow Discipline: Stay away from downtrending coins and refuse to chase highs or sell on lows. Impulsive trading only results in paying “tuition” to the market.
5. Know When to Enter and Exit: Gradually build positions during sideways markets, and decisively take profits when targets are reached. Not being greedy or overly attached to trades reveals the truth.
6. Respect Risks: There is no end to making money in the market, but balances can go to zero. Knowing when to take profits allows you to smile until the end.
7. Decisively Cut Losses: Act promptly when fundamentals deteriorate. Hesitation can turn small losses into deep pits; preserving capital ensures a future.
8. Go with the Trend: Analyze weekly charts for long-term views, and monthly charts for ultra-long views. When trends reverse, take profits promptly rather than resisting.
9. Beware of Extremes: Reversals often occur after dramatic rises or falls. Always stay alert to “irrational exuberance.”
10. Better to Have Less Than Too Much: 90% of market movements are noise. Learn to stay in cash and wait; missing out is not regrettable, but making a wrong move can be fatal.
11. Patience Wins: Rather than blindly searching for opportunities, wait for trends to clarify. Top trading is about winning through patience.
12. Know When to Stop: Set profit targets, and take breaks when achieved. Staying rational is more important than pursuing extremes.
13. Responsibility for Losses: Cutting losses is non-negotiable; profits depend on the market. Don’t confuse luck with skill; luck can ruin plans.
14. Time and Compounding: Frequent trading erodes capital. Stick to trends and endure the solitude to maintain prosperity.
15. Unity of Knowledge and Action: No strategy is perfect if it lacks execution. Use discipline to combat inner demons and let rationality guide trading.
These rules encapsulate countless blood and tears lessons. Only by engraving the rules into your very being can you become a true survivor and victor amidst the turbulent seas of cryptocurrency.
