Crypto Trading Survival Guide: 15 Golden Rules

Through the ups and downs of the cryptocurrency market, I have learned valuable lessons. These lessons have allowed me to avoid many pitfalls that can lead to huge losses. Today, I would like to share a set of trading rules that I have summarized to help you survive in this high-risk market. Keep in mind that even in a bull market, the risk is still there, and improper operation can lead to serious losses.

The following rules are not absolute, but they can help you reduce your risk in this uncertain market.

1. Avoid being one of the first participants in a trending event

When a blockchain event attracts a lot of attention, the first participants usually suffer losses. The right strategy is to wait patiently until the market sentiment stabilizes, and then evaluate the risks and rewards. If the entire crypto community is buzzing about something, it’s often unwise to get involved early.

2. Use perpetual contracts sparingly

Perpetual contracts are mainly designed for big-money players and should be avoided by ordinary investors. Trading with high leverage is extremely dangerous and can drain your funds quickly.

3. Be vigilant, discreet and trusting

The cryptocurrency market is a high-risk financial sector. Even seemingly friendly people can have bad intentions. Assuming that everyone is likely to dump your assets in the market, exercise caution and independent judgment.

4. Don’t blindly follow the founders of the project

Founders may disappoint investors. Don’t see them as heroes, but maintain an attitude of objective evaluation. There have been many cases in the past where the actions of founders have resulted in investors incurring losses.

5. Maintain a questioning attitude towards suspicious behavior

If you find something wrong with the project team’s behavior, don’t hesitate to take the initiative to question it and get the attention of other investors. Protecting your own interests is a top priority.

6. Avoid locking up tokens for long periods of time

Locking your tokens for several months can run the risk of your smart contract being hacked, as well as preventing you from exiting in time if something goes wrong with your project. It’s important to keep your assets liquid.

7. Stay away from controversial projects and figures

Certain well-known individuals may have been involved in misconduct. Try to avoid them and the items that concern them to reduce the risk.

8. Do not chase after rising prices or sell in a panic.

Don’t chase assets whose prices have skyrocketed. While it is possible to succeed occasionally, the probability of failure is higher. Be patient and wait for the market to correct before making a decision.

9. Focus on market capitalization, not unit price

When assessing the potential of a token, one should look at its total market capitalization, not the price of individual tokens. Don’t be fooled by unrealistic price predictions.

10. Take profit at the right time

If you are currently struggling financially, it is wise to sell some assets to improve your life. There will always be market opportunities, but improvements in quality of life may be even more important.

11. Connect new apps with caution

Be extra cautious when using a new blockchain application, and it’s best to test it with a small amount of money first to make sure it’s safe before using your main funds.

12. Be skeptical of a “permanent bull market”.

Don’t believe the idea that the market will go up forever. Be rational and be prepared for a variety of market situations.

13. Stay positive in a bear market

Instead of being scary, a bear market can be a good time to build up knowledge and skills. Get ready for the next bull market and don’t give up easily.

14. Avoid tokens related to “mysticism”

Buying tokens related to the occult can come with unexpected problems. Choose your investment target carefully and pay attention to the actual value of the project.

15. Stand up for what you believe in

This is the most important rule. Maintain a humble and pragmatic attitude, and strive to practice the principles you believe in; this itself is a form of growth.

By following these rules, you’ll be better able to navigate the storms of the cryptocurrency market and improve your chances of long-term survival and success. Remember, the market is always full of opportunities, and the key is to manage risk wisely and protect your assets.