The Blood and Tears Warning from a Veteran in the Crypto Space: Even in a Bull Market, There are Big Pits, Don't Repeat My Mistakes!

I jumped headfirst into the crypto space in 2018, and today I want to share all the pitfalls and falls I've experienced over the years, hoping to remind everyone not to follow in my footsteps.

Contracts - The Deadly Trap in Crypto

A bull market is not just a straight surge; the K-line chart rises and falls, following wave theory, and fluctuations are the norm. While we can analyze the major trends and build cycle models, no one can accurately predict the ups and downs within 15 minutes. Many people, however, take chances and dive into contract trading.

Contracts carry a gambler's nature, predicting price movements is like flipping a coin, and while it seems like a 50/50 chance, the reality is that nine out of ten times you lose. When you win, greed takes over, wanting to capitalize on the momentum and expand your victories; when you lose, you become unwilling to accept it, focusing entirely on recovering your losses. Casinos understand human weaknesses well; they are not afraid of you winning temporarily but fear you leaving without playing. The same applies to the contract market. After a night's sleep, market conditions can change abruptly, a large bearish candle can wipe out your account in an instant.

Mental Collapse - The Fatal Injury of Retail Investors

Chasing highs and cutting losses has become an epidemic in the crypto space. Watching prices soar, you feel a rush of adrenaline and rush in; when prices fall, you panic and immediately cut your losses. Some even take out loans to invest in crypto, completely engulfed by anxiety. Burdened with high-interest loans, all you can think about is breaking even, leading to a complete imbalance in your mindset. All the technical analysis and investment strategies learned before are thrown out the window, becoming slaves to emotions, repeatedly harvested by the market.

A Guide to Avoid Pitfalls for Newcomers

1. Information Screening: The crypto space is full of mixed information; news should be read, but you need to develop a keen eye to filter reliable sources, avoiding misleading rumors and false hype.

2. Slow Work Produces Fine Products: K-line trends are an important reference, but don’t rush in just because you see an upward trend. Calm down, analyze more, and understand the methods before taking action; haste makes waste.

3. Time Compounding: Investment is not a sprint; it’s a marathon. Give yourself time to grow, allowing knowledge and experience to ferment slowly, abandon the fantasy of becoming rich overnight, and proceed steadily, letting time be your wealth partner.

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