Survival Rules in the Volatility of the Crypto Market

The cryptocurrency market is famous for its strong volatility, which can bring huge profit opportunities but at the same time can easily wipe out all capital if there is no management strategy. To survive and thrive in this game, investors need to understand some important rules:

1. Always Prepare Mentally for 30–50% Drops In crypto, it is completely normal for prices to drop sharply in a short period. If you panic and sell off, you are likely to incur heavy losses. Consider it a natural characteristic of the market.
2. Always Keep A Portion of Cash (USDT/USDC) Reserve Having available capital reserves allows you to proactively buy more when the market drops significantly, instead of finding yourself in a "out of ammunition" situation when opportunities arise.
3. Don't Chase Parabolic Pumps When a coin has skyrocketed, jumping in at the peak often carries a higher risk than potential profit. Let others FOMO, while you need to stay clear-headed.
4. Buy and Sell by Each Stage (Scale in, Scale out) Instead of going "all in" at once, allocate funds in parts when the price drops and gradually take profits when the price rises. This method reduces risk while optimizing profits.
5. Focus on the Long-Term Cycle, Not Just Short-Term Fluctuations The crypto market operates in cycles of bull runs and bear markets. If you focus solely on daily fluctuations, you may easily lose patience and make wrong decisions.
6. Do Not Put All Your Capital Into One Single Coin Diversifying your portfolio helps you avoid the risk of "all in the wrong place." No matter how much you trust a project, you still need a reasonable capital allocation plan.
7. Learn to Separate Emotions from the Profit/Loss Table (PnL) Emotions are the greatest enemy of investors. Do not let greed or fear dictate your decisions. Rely on the strategy and discipline that you have established.
8. Capital Protection is the Number One Priority In investing, losing capital means losing opportunity. Always set stop-loss, manage risk, and remember that "keeping your money" is more important than "making a lot of money." 👉 In conclusion, to survive long-term in the crypto market, you need discipline – patience – risk management. The winner is not the one who makes the most in the short term, but the one who remains standing after the major storms of the market.