From a "Novice" to a Seasoned Trader: Six Survival Rules in the Crypto Market

There are only two thousand yuan left in my pocket, having endured losses for eight years in a row. Finally, I managed to raise my assets to thirty-six million. This path has not been paved with roses — there were sudden crashes, account burnouts, sleepless nights due to pressure. But from those tuition payments, I distilled a set of rules strong enough to survive and go far in the cryptocurrency market.

1. Rapid Rise, Slow Fall, Not Yet the Peak — The Most Dangerous Is Pump and Dump with Large Volume A common mistake for beginners is to see a strong price rally and then sell early, only to be “shaken off the train.” In reality, a rapid increase followed by a slow decline is not necessarily the peak. What to watch out for is a sharp upward spike accompanied by explosive volume, followed immediately by a reversal. That often signals distribution. I once witnessed a coin increase steadily for three days with high volume, and many people FOMOed in. On the fourth day, a long red candle with a sudden volume spike appeared. I decided to exit all positions and avoided a drop of over 50% afterward.
2. After a Quick Crash, Don’t Rush to “Catch the Falling Knife” Deep decline — slow rebound: absolutely avoid rushing to “buy the dip” thinking it’s cheap. The rebound after a flash crash is often a psychological trap, playing on luck. When you feel “sure it’s the bottom,” there’s a good chance there’s still half a mountain below. In 2023, there was a project that halved in just three days. Many jumped in with the mindset of “buy low,” only to get stuck deeper. I waited until volume waned, the range narrowed, then gradually deployed funds — and caught a real rebound.
3. At the High Zone, Volume Still Exists — No One Playing Is the Most Scary Price at the top with volume means buyers and sellers are still fighting. Conversely, high price but thin liquidity indicates “sharks” have left the table, leaving only small players exhausting each other. I tracked two coins: one was sideways at a high level with large volume, then broke out after accumulation; the other was rising but with shrinking volume, seeming “stable,” but eventually got stuck in a trap.
4. Bottom with Volume Bumps: Look at Resilience, Don’t Believe in One Day A volume spike at the bottom doesn’t mean much. The key is continuity: several days of genuine buying, preferably after a sideways phase. My strategy: the first time volume increases, add to the watchlist; if for three consecutive days volume and price don’t make a lower bottom, then open a small position to test. You might miss the absolute bottom, but the safety margin is higher.
5. Candles Are Just Shells — Volume Is the Backbone Price is heavily influenced by emotions. To understand the true strength, you must read volume. Many breakouts are fake; only with volume support can a trend be trusted. After countless “trap” experiences, I developed a habit: look at volume first, then examine candle patterns. This helps filter out most noise.
6. The Highest Realm Is “Nothing”: Knowing When to Wait, When to Leave, When to Rise Don’t enter trades to avoid traps; take profits at the right time to preserve gains; dare to buy at critical zones to avoid being chained by fear. Controlling psychology is always harder than reading charts. Eight years of struggle have taught me one truth: those who go far are not the ones with fancy moves, but those with enough patience, discipline, and the ability to be slow and steady. The market is not short of opportunities; what’s rare is the eye to see the right path. Conclusion Surviving in crypto doesn’t come from a few lucky hits, but from a repetitive process: risk management, reading volume correctly, waiting for confirmation points, trading with discipline, and knowing when to exit. Continuous learning is your greatest asset. Slow but sure — that’s the long-term path.