During the last market cycle, both bear and bull markets, I made a lot of mistakes due to lack of experience. However, these mistakes were valuable lessons for me. I paid expensive "market tuition", but I also avoided many pitfalls that caused me to lose almost all my income. I summarized these lessons into a set of rules and followed them to the letter. Today, I want to share these rules with you. The purpose of these rules is not to make you rich, that is your business. The real point of these rules is to help you survive in this high-risk market. You know, even in a bull market, risks still exist, and you may be "exploded" due to operational errors.
Of course, the following rules are not absolute, but they can help you reduce risks in this uncertain market.
Rule 1: Never be among the first participants in a highly anticipated blockchain event.
If a blockchain event garners widespread attention, early participants are often punished. For example, early investors in Sushiswap faced losses, and the Otherside deeds project experienced similar issues, with many such examples. Those who bought into Sushi too early ultimately paid a painful price. The correct strategy is to patiently wait until market sentiment stabilizes, and panic selling (FUD) or excessive hype gradually subsides, before reassessing whether the risk and reward are worth it. If the entire crypto community (Crypto Twitter, CT) is buzzing about something, early participation often leads to failure.
Rule 2: Never rashly use perpetual contracts (Perps).
Perpetual contracts are designed for 'giga whales,' not for ordinary retail investors. Most people are not GCR, Hsaka, Andrew Kang, or Nexus. You shouldn't trade perpetual contracts. This tool is typically used by whales to supplement their positions or to make small bets with low leverage. A leverage of 10x or more is like putting yourself in the grip of a demon; never try it. Perpetual contracts are the fastest way to zero funds, bar none.
Rule 3: Always assume others have malicious intent.
You are in the 'Wild West' of the financial industry. There are no real friends here; even if someone acts like your friend, it is no exception. There are countless stories of people being deceived in the market, many of whom were betrayed, attacked, or scammed by those they trusted. You should assume that these people could be malicious strangers, or even potential scammers. Do not easily trust anyone; assume everyone will sell off your assets in the market.
Rule 4: Do not blindly idolize founders.
In this market, founders are the ones you need to be most vigilant about. They often cause losses for investors and token holders. For example, Do Kwon, Dani Sesta, Andre Cronje, and others have repeatedly disappointed investors, as have Chef Nomi, the Starknet team, and the founders of Celsius. Do not view founders as heroes; assume they may deceive you, as they likely will.
Rule 5: If team behavior is suspicious, you must 'create panic' and 'pretend to care.'
This rule supplements Rule 4. If you notice problematic behavior from a founder or team, you should proactively 'create panic' (FUD) and 'pretend to care' (concern troll). By questioning the project's actions, you can encourage more people to join the skepticism until the team abandons their questionable behavior. Those who blindly support the team may end up losing everything, and you need to protect your own interests.
Rule 6: Never lock your tokens.
Locking tokens for months was one of the biggest mistakes I've ever made. Remember, never do that! Locked tokens may face the risk of smart contracts being hacked. Additionally, when teams know that investors' tokens are locked, they often engage in some unscrupulous behavior. For example, the Opening Ceremony incident of TempleDAO is a typical case. Do not lock your tokens to avoid being passive.
Rule 7: Stay away from Sisyphus.
Sisyphus once conducted a rug pull amounting to 60 million dollars and remains at large to this day. If possible, avoid him and the projects he participates in as an 'angel investor.' In this circle, Sisyphus is the most notorious seller. His actions can be described as 'predator' and 'destroyer' on the chain. Stay vigilant and take responsibility for your assets.
Rule 8: Do not buy assets that have skyrocketed.
Do not chase assets that exhibit parabolic price increases. While it may occasionally succeed, the chances of failure are far greater than success. Instead of taking risks, it is better to patiently wait for the market to adjust.
Rule 9: Focus on market cap, not unit price.
Many people fall into the trap of the unit price, especially supporters of XRP who believe XRP can rise to 10,000 dollars, or that Shib can rise to 0.01 dollars. But in reality, these targets are unattainable. We should judge based on whether the market cap is achievable, rather than just focusing on the price. However, if others are willing to believe in those unrealistic price targets, you can let them be.
Rule 10: Remember to take profits.
If you are currently facing financial difficulties, it is entirely reasonable to sell off some assets to resolve these issues. This market will always exist, and opportunities will always be there. Many people chase a target number (such as 50,000, 100,000, 200,000) and end up experiencing profit reversals. If these numbers can change your life, then decisively take profits. As Foo said, the goal is to earn returns equivalent to two years' salary from the market. Such financial security will make you a better trader and allow you to live more easily. In the long run, this mindset adjustment will greatly benefit you.
Rule 11: Do not randomly connect to unfamiliar applications.
Be cautious before using any new application, as it may lead to the theft of your assets. It is advisable to test with a smaller wallet first and only use your main wallet once you are sure of its safety.
Rule 12: Do not believe in the concept of 'super cycles.'
The so-called 'super cycle' refers to the view that the market will continue to rise. Is this really a super cycle? I cannot be sure. But if it is not, I do not want to make mistakes again by believing in this concept.
Rule 13: Do not give up during a bear market.
When we enter another bear market, I hope you have followed Rule 10 and taken profits in a timely manner. Bear markets are not to be feared, so do not give up. In fact, the biggest gains often occur at the end of a bear market. I am a living example. During a bear market, you should focus on improving your skills, honing your trading techniques, and preparing for the next bull market.
Rule 14: Do not buy tokens related to 'mysticism.'
Buying such tokens may lead to some unpredictable consequences. If you are a materialist who does not believe in these things, at least know that the founders of these tokens are often morally questionable with malicious intent. Choose your investment targets carefully.
Rule 15: Wholeheartedly stick to your beliefs.
This is the most important rule and the only way to stay grounded and humble. While we may not be able to fully achieve it, the effort to practice it is a form of growth.
【Disclaimer】The market has risks, and investment must be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions in this article align with their specific situation. Invest at your own risk.
This article is authorized to be reproduced from: (Deep Tide TechFlow)
Original author: Based Money Lich King
'Blood and tears lessons selflessly shared! Big shots reveal 15 survival rules: how to avoid traps and steadily make money.' This article was first published on 'Crypto City.'
