#PEPE

Preface

In the cryptocurrency market, whether in a bull or bear market, investors may face various traps and risks. As a senior crypto investor who has experienced multiple market cycles, I have made many mistakes in my past trading career and paid a high price for them. However, these mistakes have also allowed me to accumulate valuable experience and summarize a set of survival rules.

The purpose of this survival rule is not to teach you how to get rich overnight, but to help you survive in this volatile and risky market. No matter what the market conditions are, the primary goal of investment is to protect the principal and avoid fatal mistakes. The following are 15 survival rules that I learned through hard work and tears. I hope they can provide some reference for your crypto investment journey.

Rule 1: Stay away from the first participants of "hot events"

In the crypto market, hot events are often accompanied by huge hype. However, the first participants usually become victims. Take Sushiswap and Otherside deeds as examples, where early investors suffered huge losses due to the sharp fluctuations in market sentiment. The correct strategy is to remain patient and wait for market sentiment to stabilize before evaluating the risk and reward. Remember, when the entire crypto community is hotly discussing something, the probability of failure for early participation is extremely high.

Rule 2: Use perpetual contracts with caution

Perpetual swaps (Perps) are one of the riskiest instruments in the crypto market and are more suitable for well-funded whale investors rather than ordinary retail investors. High leverage trading can wipe out your wealth in a short period of time, especially leverage operations of 10x or more. For most people, it is a wise choice to stay away from perpetual swaps.

Rule 3: Assume others have bad intentions

The crypto market is like the Wild West, full of scams and traps. There are no real friends in this field, and even those who appear to be friendly may have ulterior motives. Many investors have suffered losses because of their credulity. Don't trust the project owners or the "opinion leaders" on social media easily. Always assume that others may sell your assets and stay vigilant.

Rule 4: Don’t idolize the founder

Many crypto founders are not trustworthy heroes. Historically, well-known founders like Do Kwon, Dani Sesta, Andre Cronje, etc. have disappointed investors. No matter how glamorous the background of the project team is, don't have unrealistic expectations of them. Instead, assume that they may take actions that harm the interests of investors.

Rule 5: Be wary of team behavior and proactively question it

If you find that a project team is behaving suspiciously, do not hesitate to take immediate action to protect your interests. By questioning the project's behavior on social media, you can attract more attention and prompt the team to abandon improper behavior. Those who blindly support the team may suffer losses as a result, and your questioning may be the key to protecting your assets.

Rule 6: Don’t lock up your tokens

Locking tokens is a high-risk behavior. Whether it is a smart contract attack or improper behavior of the project team, locking tokens may put you in a passive position. For example, the Opening Ceremony incident of TempleDAO is a typical lesson. In order to avoid assets being controlled by others, try to avoid locking tokens.

Rule 7: Stay away from bad investors

In the crypto market, some high-profile investors are known for unethical behavior. For example, Sisyphus once conducted a $60 million rug pull and is still at large. Try to avoid these people and the projects they are involved in to protect your assets.

Rule 8: Don’t chase skyrocketing assets

When an asset price is rising parabolically, buying high is often the beginning of failure. Although short-term gains may be achieved occasionally, in most cases, such behavior will lead to serious losses. It is a safer strategy to patiently wait for the market to adjust.

Rule 9: Focus on market value, not unit price

Many investors tend to fall into the price myth, thinking that low-priced assets have more room for growth. But in fact, market capitalization is the key indicator to judge the potential of an asset. Don't be confused by unrealistic price targets, but evaluate the rationality of assets based on market capitalization.

Rule 10: Take Profits at the Right Time

If your investment has achieved considerable returns, do not hesitate to take profits at the right time. Many investors miss the opportunity to realize their returns because they pursue higher goals. Remember, there will always be new opportunities in the market, and solving current economic problems and improving the quality of life are more important goals.

Rule 11: Use new applications with caution

Be careful before using any new crypto application. It is recommended to test it with a wallet with a small amount of money first, and then use the main wallet after ensuring it is safe. This can effectively reduce the risk of asset theft.

Rule 12: Don’t Be Superstitious About “Super Cycles”

A "supercycle" is the idea that the market will continue to rise. However, this idea is often wrong. No matter how optimistic the market is, you must be cautious and avoid making mistakes due to blind optimism.

Rule 13: Don’t give up in a bear market

The bear market is not terrible, it is the best time to accumulate experience and chips for the next bull market. In the bear market, focus on improving your abilities, honing your trading skills, and preparing for future opportunities.

Rule 14: Stay away from “occult” themed tokens

Tokens related to the occult are often associated with bad ethics or misconduct. Even if you don’t believe in the risks of these themes, be wary of the intentions of their founders. Choose your investment carefully to avoid unnecessary losses.

Rule 15: Stay true to your beliefs and stay humble

In the crypto market, sticking to your beliefs is the key to staying rational and humble. Although we cannot completely avoid mistakes, trying to practice these rules is a kind of growth in itself. Always keep a learning and exploring mindset, and you will be more likely to survive in this market for a long time.

Conclusion

The crypto market is a field full of opportunities and risks. In this "Wild West", only those investors who can identify traps and avoid risks can survive in the long run. I hope these 15 survival rules can provide some inspiration for your investment path and help you move forward steadily in this high-risk market. Remember, it takes time to accumulate wealth, and survival is the first priority of investment.