Survival Rules for the Crypto Market: 15 Tips to Avoid Common Traps

After years of struggling in the crypto market, I have accumulated a wealth of valuable experience. These experiences were hard-earned, costing me a high "tuition fee". Today, I want to share with you some key rules for surviving in this high-risk market. These rules are not designed to make you rich, but to help you reduce risks and avoid significant losses in this uncertain environment.

1. Be cautious about trending events

For highly anticipated blockchain projects or events, do not rush to be among the first participants. Usually, those who enter too early tend to suffer losses. A wise approach is to patiently wait until the market sentiment stabilizes, and then weigh the risks against the rewards.

2. Stay away from perpetual contracts

Perpetual contracts are mainly suitable for large investors with strong financial backing and rich experience, and ordinary retail investors should stay away from them. High-leverage trading is extremely dangerous and can easily lead to a total loss of funds.

3. Stay vigilant

In this "Wild West of Finance", you need to stay vigilant at all times. Do not easily trust anyone, as even seemingly friendly individuals may have ulterior motives. Assume that everyone could potentially dump your assets in the market.

4. Do not blindly worship project founders.

Founders are often the type of people who require the most vigilance. Many well-known founders have disappointed investors. Do not view them as heroes, but maintain rational judgment.

5. Questionable behavior

If you find the project team's behavior suspicious, do not hesitate to raise questions immediately. Through open discussion and criticism, you can protect your own and other investors' interests.

6. Avoid Lock-up

Locking tokens for a period of time is a very risky practice. It not only increases the risk of the smart contract being hacked, but it may also prevent you from withdrawing in a timely manner when issues arise with the project.

7. Stay away from bad actors

Certain individuals or teams are notorious due to past misconduct. Try to avoid these people and any projects associated with them to reduce risk.

8. Do not chase the rise.

Don't blindly chase after assets with skyrocketing prices. While you may occasionally succeed, the odds of failure are higher. Be patient and wait for the market to adjust before making decisions.

9. Focus on market capitalization rather than unit price

When assessing the potential of a token, one should focus on its total market capitalization rather than the price of a single token. Do not be misled by the seemingly cheap unit price.

10. Timely take profit

If your investment has reached a level that can improve your quality of life, don't hesitate to realize some profits at the right time. This can not only alleviate current economic pressures but also allow you to face the market with a better mindset.

11. Use new applications with caution

Be extra cautious before connecting to any new applications. It is recommended to test with a small amount of funds first, and only use your main funds once safety is ensured.

12. Maintain a rational view of the market cycle

Do not blindly believe in concepts like "super cycles". The market always has ups and downs, so it is important to remain rational and vigilant.

13. Persistence through the bear market

A bear market is a good time to accumulate knowledge and enhance skills. Don't give up because of the market downturn; instead, you should prepare for the next bull market.

14. Avoid tokens related to "mysticism"

Tokens related to the theme of "mysticism" often carry higher risks, and the motives of the founders may also be questionable. Choose investment targets carefully.

15. Stick to your beliefs

This may be the most important rule. Maintain a humble and down-to-earth attitude, and adhere to your investment philosophy and principles. Although it is difficult to achieve perfection, striving to practice this itself is a form of progress.