The crypto world does not care about ideals; it only cares about people. But as long as you master the survival rules, you can make the market work for you.
In the cold winter of 2013, I did the boldest thing of my life—I secretly took 60,000 yuan from home and jumped into the crypto world. The results were predictable: three months later, I was left with only 'my underwear.'
I didn't dare to tell my parents, pretending to go to work every day, while actually hiding in an internet café, staring at the K-line until my eyes bled. It wasn't until I received the liquidation message that I suddenly realized: the market doesn't care about your ideals, only your IQ tax.
Eight years have passed, and I have grown from a loser who couldn't dare to go home after losing money to a crypto analyst with an eight-digit account who bought a house for my parents in cash. Today, I will distill these hard-earned lessons into five survival rules to help you survive and thrive in the crypto world.
1. Stop-loss: not just a strategy, but a talisman
The crypto market is highly volatile; on May 19, the single-day liquidation reached billions of dollars. Many people hold their positions after losses, hoping the market will turn. But math is cruel: a 50% loss requires doubling to break even, while a 90% loss requires a ninefold increase!
I have seen too many people hold positions until they collapse. Now I set a rule for myself: any trading loss over 3% automatically triggers a stop-loss, no exceptions.
This is not advice, but a lifesaver. Richard Dennis turned $400 into $200 million; one of his secrets is to 'minimize losses, protect capital, and make big profits when great opportunities arise.'
2. Emotional stability: the 'invisible skill' of making money
Do you double down emotionally when you lose money? Those who let emotions dictate their decisions have already been eliminated in the crypto world. Those who hold steady are like trading machines: set alerts when opening orders and close the software when finished.
The market is irrational. When Bitcoin kept hitting new highs in 2017, and the media and public were wildly enthusiastic, sharp traders should have been cautious. As Buffett said: 'Be greedy when others are fearful, and fearful when others are greedy.'
If you find yourself losing control of your emotions, stop trading immediately. Leave the screen, take a deep breath, and come back when your mind is clear.
3. Don't 'fall in love' with coins
The coins you heavily invested in won't hurt you when they drop, and they won't remember you when they rise. Treat coins as tools, not as 'white moonlight.'
The rules are simple: withdraw your principal once profits exceed 20%, and decisively exit when the trend breaks. The crypto world is filled with 'air coins' lacking foundational technology teams and real value; you will never be the last one to take the fall.
Many project teams simply collaborate with exchanges to hunt investors together. Don't let your emotions cloud your judgment.
4. Light positions: the key to survival
Don't believe the myth of 'becoming rich overnight with 100x leverage.' Leverage in the crypto world can reach up to 100 times or even 125 times; once the market moves against you, liquidation can occur in an instant.
I now never exceed 5% of my position in each trade. Want to get rich quickly? Think about the risks first; don't just focus on profits and forget the pitfalls.
Position determines mentality, and mentality determines success or failure. In the world governed by the 'law of the jungle' in the crypto world, light positions give you greater risk tolerance and clearer judgment.
5. Daily review: the secret to not being eliminated by the market
The market is eliminating people every day; it just hasn't been your turn yet. Daily reviews are key to avoiding the same pitfalls.
Ask yourself three questions: 'Why didn't I set a stop-loss?' 'Why did I chase up again?' 'Why didn't I execute according to plan?'
Richard Dennis emphasized: 'Focusing on short-term trading results will mislead you.' Keep your eyes on the long term and stick to systematic trading instead of being swayed by short-term fluctuations.
New challenges for survival in the crypto world
Today's crypto world is more complex than in 2013. Seven associations recently jointly issued risk warnings, pointing out that some criminals are conducting illegal fundraising and pyramid schemes under the guise of 'stablecoins' and 'real-world asset tokens (RWA)'.
At the same time, the regulatory environment is also changing. The US is engaged in fierce debates over digital asset regulation and may introduce clearer rules in the future. This is good for long-term development, but may bring market volatility in the short term.
Conclusion: Survive to earn more
I still keep the transfer record of that 60,000 yuan from back then. It is not the starting point, but a reminder not to be greedy.
The crypto world is chaotic; follow the 'law of the jungle,' but it also holds opportunities. The last advice for beginners: don't just think about making money; first, learn to survive. Master these five rules, survive, and only then will you have the chance to earn more.
If you feel confused in trading or want to learn more about crypto knowledge and cutting-edge information, feel free to follow me! I will regularly share practical experience and market analysis to help you navigate the crypto world smoothly.
PS: Have you ever paid the price for making the above mistakes? Feel free to share your story in the comments, and let's move forward together.#巨鲸动向 $ETH
