On January 20, 2025, TRUMP, a meme coin launched by former U.S. President Donald Trump, surged from 0.18to80 within 24 hours — a 400x rally — before crashing to 48.Behindthefrenzy,nearly370,000tradersfacedliquidation,losing1.098 billion. Yet, this is just another day in the crypto world.
Over Bitcoin’s 16-year history, some have achieved financial freedom, but far more have become "fuel" for its volatility. From Dogecoin’s hype driven by Elon Musk’s tweets to El Salvador’s Bitcoin-as-legal-tender experiment, and the global regulatory tug-of-war, the crypto market has evolved from a geek’s playground to a battleground of capital, technology, and human nature. Here, the "knowledge gap" is the scythe, the "information gap" is the chopping block — are you the lamb or the hunter?
Today, we skip the get-rich-quick fantasies and focus on survival rules. Whether you’re a newbie or a seasoned trader, these 7 hardcore principles will be your compass through the chaos.
Rule 1: Learning is the Foundation
Before entering the crypto market, you must spend time learning the basic knowledge of Bitcoin and other cryptocurrencies. Understand blockchain technology, the mining principle of Bitcoin, and the market supply - demand relationship. Only by laying a solid foundation can you make wise decisions in the complex market environment. You can improve your knowledge level by reading professional books, taking online courses, and following industry news.
Rule 2: Plan Your Funds Reasonably
Cryptocurrency trading is risky. Never invest all your funds in the crypto market. Plan your investment funds according to your financial situation. Generally, it is recommended to invest 10% - 20% of your investable funds in the cryptocurrency market. At the same time, do a good job in asset allocation. Don't put all your eggs in one basket. You can diversify your investment among different cryptocurrencies to reduce risks.
Rule 3: Control Your Emotions
The price fluctuations in the crypto market are extremely violent. Sometimes, the price can rise or fall by dozens of percentages within a day. In such a situation, it's easy for people to feel fear and greed. When the price drops, don't panic and sell blindly; when the price rises, don't be greedy and chase the high price. Keep a calm head and make decisions based on your investment strategy and market conditions.
Rule 4: Set Stop - Loss and Take - Profit
In the process of cryptocurrency trading, setting stop - loss and take - profit is very important. Stop - loss can help you control your losses. When the price drops to a certain level, it will automatically sell to prevent further losses. Take - profit allows you to lock in your profits. When the price rises to your set target, sell in time to secure your gains.
Rule 5: Keep an Eye on Market Trends
The crypto market is a global one, affected by various factors such as policies and regulations, technological innovation, and market sentiment. Always stay updated on market trends and be aware of the latest industry news. You can obtain information by following industry media, joining communities, and participating in offline events.
Rule 6: Choose a Reputable Platform
When trading cryptocurrencies, you must choose a regular and secure trading platform. Check the platform's qualifications and reputation, and understand its trading rules and handling fees. Avoid choosing small or unregulated platforms to prevent financial losses.
Rule 7: Long - Term Investment
Cryptocurrency trading is not a get - rich - quick game. It's a long - term investment. Have patience and a long - term vision. Don't be affected by short - term price fluctuations. Choose promising cryptocurrencies and hold them for the long term, waiting for their value to increase.
In conclusion, the crypto world is a place full of opportunities and risks. As long as we master the correct rules for cryptocurrency trading and stay rational and calm, we can move forward steadily in this market. I hope these 7 rules will be helpful to you. May you have a successful investment in the crypto market!
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