Let me tell you a true story. I have an old-timer around me who has been struggling in the encryption circle, and he's almost 50 this year. You would never guess that he holds assets worth k-level when you see him on the street — every day he rides a small electric scooter that’s about to fall apart, wandering around the urban village, and when he goes grocery shopping, he can haggle with the elderly ladies for a few cents for a long time. The backpack he carries is so worn out that the seams are coming apart, but he’s still reluctant to replace it.

This seemingly stingy uncle entered the market with around 300,000, and surprisingly turned his principal into nearly 100 million in this ruthless market that devours everything. He didn't cheat or have any insider information; he relied on a few methods that seemed incredibly dumb but were actually very effective when implemented.

I have known him for about ten years, and recently while having tea, I finally managed to extract his set of mental methods. To be honest, these tricks don't sound appealing, and are even a bit counterintuitive, but in this market, the more they go against human nature, the better they can save your life. Today, I pulled out my notebook to discuss these few truths with you — in the encryption market, avoiding one foolish mistake is equivalent to making ten small profits.

**First move: When you see "slow knife cutting meat", don't rush to run away**

Many people are like this: when they see a certain cryptocurrency suddenly surge violently, they feel an urge to jump in, only to find that in the following days, the price deflates like a punctured ball, gradually going down. At this point, their hands start to shake, fearing they will become the high-priced buyer, and they hurriedly cut their losses and leave.

The old man always finds it amusing in such situations: "You're typically scared to the point of wetting yourself." His reasoning is quite simple—slow declines after a sharp drop are often not real collapses, but rather large funds deliberately suppressing prices to accumulate chips. It's like at a vegetable market before closing, vendors intentionally shout low prices to clear their goods, but savvy buyers know that this is the best time to stock up. The slower the decline, the more it indicates that someone is patiently collecting.

He has set very rigid rules for himself: as long as the pullback does not break through those key technical levels (he often watches the intermediate Fibonacci retracement levels), he will never take action. When should he withdraw? Wait until the second wave of trading volume clearly expands—this indicates that the buyers have already had their fill and are ready to lift the market. At this point, following along will allow one to catch the main upward trend.

**Second Tip: When you see a diving-style plunge, don't rush to buy the dip**

I remember a wave of market movement last year very clearly, where a certain mainstream cryptocurrency dropped nearly 20% in just one day. The candlestick on the chart was thick and long, looking terrifying. At that time, the group was in an uproar, with a bunch of people shouting, "The golden pit is here."