4 "Survival" Rules in the Crypto World – Lessons from the Market Cycle

The cryptocurrency market has witnessed countless stories of “going to heaven – falling to hell” in just a few months. From those who turned tens of thousands of dollars into millions, to those who lost everything after a single crash, all leave a clear lesson: Crypto is not for those lacking knowledge and discipline. Below are four survival rules distilled from many years of experience through bull and bear market cycles. 1️⃣ Don't Touch What You Don't Understand One of the most common mistakes made by new investors is chasing trends without understanding their nature. When the market is “hot”, a plethora of NFT projects, meme coins, or new tokens emerge, accompanied by the temptation of x10, x50 figures. But money only flows to places with real understanding. If you do not grasp the operational mechanisms, tokenomics, or smart contract logic, losing capital is just a matter of time. 👉 Principle: Money that is beyond your understanding is money you cannot keep. 2️⃣ Position Management – Shaping Results The way to allocate an investment portfolio determines 80% of an investor's success. A balanced position structure helps you protect your capital while taking advantage of opportunities. Example of reasonable allocation: 50% of assets in major currencies like BTC, ETH to preserve long-term value. 30% participating in DeFi, staking, or arbitrage to increase profits cyclically. 20% liquidity reserve, ready to buy when the market adjusts. When the market drops, this portfolio doesn't make you panic; when the market rises, you have “bullets” ready to take advantage. 👉 Principle: A stable position leads to a stable mindset. 3️⃣ Stay Away from Leverage Leverage is a double-edged sword — it can amplify profits, but it often amplifies losses more quickly. Many people lost their entire accounts overnight due to going “all in” on futures contracts during a strong volatility. 👉 Principle: Leverage is not a tool for getting rich, but a shovel digging a grave for your capital. 4️⃣ Self-Filter Information – Don't Be Misled The crypto world is full of signals, “insider” groups, and so-called “influencers” who claim to have early information. But most of them are just liquidity traps for the next person to provide liquidity for the previous one. In a decentralized market, the most reliable sources of information are on-chain data, whitepapers, and the behavior of large whales (whales). 👉 Principle: Trust only in data, not in words. Summary Cryptocurrency is a brutal game of knowledge – psychology – and discipline. Those who understand deeply, maintain principles, and respect risk will survive and thrive through all cycles. Meanwhile, those who look for shortcuts and chase noise will sooner or later exit the game in losses. Remember: “The market does not reward the quick, but rewards the persistent.”