When short on money, the desire to get rich quickly makes it very difficult to profit because doubling 50,000 only earns you 50,000, which is simply not enough. In fact, doubling in two years is already very impressive, so you should first accumulate capital.
I don't have a way to turn 50,000 into 1 million, but I have experience going from 300,000 to over 10 million, so I should have some say on this matter.
I have been trading cryptocurrencies for 10 years, going from a 300,000 investment with a 90% loss to now supporting my family through crypto trading with stable long-term profits. This is because I have understood the 10 rules of crypto trading over the past decade, and today I share them without reservation for those who are destined to find them. Even beginners in the stock market can understand them, and they are worth your likes and bookmarks!
I still remember when I first entered the market; I thought trading was very simple, so I learned a few strategies and candlestick patterns, and I couldn't wait to prove my ability in the crypto space, only to pay a heavy price for my naivety. Later, when my father found out, he scolded me harshly; it was the first time he had ever taught me a lesson. I resolved not to disappoint him. That night, I knelt on the ground, repeatedly blaming myself with my trading records. My father felt sorry for me and told me that although there are top performers in every industry, the opportunities for becoming a top performer are limited. Those who can become top performers have all mastered their respective industries thoroughly. Without accumulating small steps, you cannot reach a thousand miles; without gathering small streams, you cannot form a river or sea. The fundamentals never change; just like a sword, no matter how skilled the maker is, without iron, it cannot be forged.
In the last market cycle, whether in a bear or bull market, I made many mistakes due to a lack of experience. However, these mistakes were valuable lessons for me. I paid expensive 'tuition fees' to the market, but I also avoided many traps that could have almost caused me to lose all my earnings.
I have summarized these lessons into a set of rules and strictly adhered to them. Today, I want to share these rules with you. The purpose of these rules is not to make you rich; that's up to you. The real significance of these rules is to help you survive in this high-risk market. You should know that even in a bull market, risk still exists, and you may suffer a 'liquidation' due to operational errors.
Of course, the following rules are not absolute, but they can help you reduce risk in this uncertain market.
Rule 1: Never be among the first participants in a highly anticipated event
If a blockchain event attracts widespread attention, the first participants are often punished. For example, early investors in Sushiswap suffered losses, as did the Otherside deeds project; there are many similar examples.
Those who bought into Sushi too early ultimately paid a painful price. The correct strategy is to wait patiently until market sentiment stabilizes and panic selling (FUD) or excessive hype gradually subsides, then reassess whether the risks and rewards are worth it. If the entire crypto community (Crypto Twitter, CT) is buzzing about something, early participation is often a formula for failure.
Rule 2: Never recklessly use perpetual contracts (Perps)
Perpetual contracts are meant for 'giga whales,' not tools for ordinary retail investors. Most people are not GCR.Hsaka, Andrew Kang, or Nexus. You should not trade perpetual contracts. This tool is usually used by whales to supplement their positions or make small bets with low leverage. Leverage of 10 times or more is like falling into the control of a demon; don’t try it. Perpetual contracts are the fastest way to wipe out capital, bar none.
Rule 3: Always assume others have malicious intent
You are in the 'Wild West' of finance. There are no real friends here; even if someone acts like your friend, that doesn't change. There are countless stories of being deceived in the market, with many people betrayed, attacked, or scammed by those they trusted. You should assume that these people may be ill-intentioned strangers or even potential scammers. Don’t easily trust anyone; assume everyone will sell your assets in the market.
Rule 4: Do not blindly worship founders
In this market, founders are the ones who need the most vigilance. They often cause losses for investors and token holders. For example, Do Kwon, Dani Sesta, Andre Cronje, etc., have disappointed investors multiple times, as have Chef Nomi, the Starknet team, and the founders of Celsius. Do not treat founders as heroes; assume they will deceive you because they likely will.
Rule 5: If the team's behavior is suspicious, you must 'create panic'
This rule is a supplement to Rule 4. If you find that a certain founder or team's behavior is suspect, you should proactively 'create panic' (FUD) for your assets and 'pretend to care' (concern troll). By questioning the project's behavior, encourage more people to join the questioning until the team abandons its suspicious behavior. Those who blindly support the team may lose everything, and you need to protect your own interests.
Rule 6: Never lock your tokens
Locking up tokens for months is one of the biggest mistakes I've made. Remember, never do this! Locked tokens may face the risk of smart contracts being hacked. Furthermore, when the team knows that investors' tokens are locked, they often engage in some disreputable behavior. The TempleDAO's Opening Ceremony incident is a typical case. Don't lock your tokens to avoid becoming 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, try to avoid him and the projects he is involved in as an 'angel investor.' In this circle, Sisyphus is the most notorious seller. His actions can be described as 'predators' and 'destroyers' on the chain. Stay alert and take responsibility for your assets.
Rule 8: Do not buy into assets that have surged
Don't chase after assets that experience parabolic price surges. While it may occasionally succeed, the probability of failure far exceeds the success, and it’s better to wait patiently for the market to adjust.
Rule 9: Focus on market cap, not price
Many people get caught up in the price mindset, especially supporters of XRP who think XRP can rise to $10,000, or Shib can rise to $0.01. But in reality, these targets are impossible to achieve. We should judge based on whether the market cap is achievable rather than focusing solely on 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 completely reasonable to sell some assets to resolve these issues. This market will always exist, and opportunities will always be there. Many people have experienced a return of earnings because they pursued an ideal target number (such as 50,000, 100,000, 200,000). If these numbers can change your life, then decisively take profits. As Fo0 said, the goal is to earn an amount equivalent to two years of salary from the market. This financial sense of 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 connect to unfamiliar applications randomly
Before using any new application, be very cautious, as this may lead to your assets being stolen. It is advisable to test with a smaller wallet first, and once safety is ensured, then use the main wallet.
Rule 12: Do not believe in the concept of 'super cycle'
The so-called 'super cycle' refers to the view that the market will continue to rise. Is this really a super cycle this time? I cannot be sure. But if it isn't, I don't want to make mistakes again by believing in this concept.
Rule 13: Do not give up in 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 scary; don't give up because of that. 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: Don't buy tokens of 'mysticism'
Buying this type of token may lead to some unpredictable consequences. If you are a materialist and don't believe in these, at least know that the founders of these tokens are often morally questionable and have bad intentions. 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. Although we may not be able to achieve it completely, striving to practice it is a form of growth.
These days, I am preparing for the launch of a divine order!!!
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Impermanence brings impermanence brings impermanence!!!
Important things are said three times!!!
