Who would have thought? Seven years ago, I was still in an 8-person dormitory at an electronics factory in Pidu, Chengdu, struggling over whether to add an egg to a 10 yuan fast food meal — with a monthly salary of four thousand, I saved for three years to accumulate 150,000 'emergency money'. Now, holding the keys to two apartments, I know better than anyone when the numbers in my account fluctuate: the crypto market is never a casino of luck, but a battlefield for sifting gold based on 'rules learned from mistakes'. The three major pitfalls I've experienced still help me avoid 90% of the scams.
1. Those who are panicking to escape are the leeks: I've deciphered the 'tricks' of the main players washing the market.
When I first entered the crypto market, I was purely a 'frightened bird.' When I first bought a certain crypto asset and it rose 20%, I was pleased, but after it pulled back for three days, I panicked about losing my capital and sold it overnight — only to see it surge 50% a week later. Watching the doubled market, I wished I could slap myself twice.
It was only after that loss that I understood: a slow decline after a sharp rise is most likely the main players 'washing the chives.' The main players like to focus on retail investors with unstable mindsets, creating panic with small pullbacks, and once all the shares are in their hands, they quickly push prices up. Later, I encountered an asset that surged 30% in a single day, and suddenly crashed that afternoon. Remembering the lesson from last time, I decisively took profits and exited — sure enough, it dropped directly by 40% afterward, leaving countless high chasers trapped at the top.
Here’s the key point for everyone: When you encounter a sharp rise followed by a pullback, first look at the 'pullback amplitude.' As long as it hasn't broken through key support levels (like recent lows or moving averages), and the trading volume hasn't increased, don't rush to run away; but if there's a sudden crash after a single-day surge, don't hold any illusions, exit immediately, as the main players will run faster than you imagine.
Second, 'cold periods' at high positions must lead to exits: trading volume is the 'footsteps of funds.'
The second blow I took from food directly cost me 30,000 — a popular crypto asset was fluctuating at a high level without much daily movement. I thought it was 'building momentum for a rise,' not noticing that the trading volume had already plummeted to one-third of what it was before, like a stagnant pool. As a result, it halved a week later, and looking at my account balance, I almost dropped my phone.
Since then, the four characters 'high position low volume' have been etched into my DNA: in the crypto market, trading volume is the 'footsteps of funds.' When there are buyers at high positions, trading volume will be active; if the price remains high but trading volume continues to shrink, it indicates that funds have quietly withdrawn, leaving only retail investors exchanging shares, and a crash is just a matter of time.
Later, when I encountered assets fluctuating at high positions, my first action was to check the trading volume: as long as the trading volume was below 50% of the recent average for three consecutive days, regardless of profit or loss, I decisively reduced my position — this move helped me avoid at least four 'halving disasters.'
Three, mistaking rebounds for bottoms: bottom fishing must wait for a 'confirmation signal.'
The worst time was when I mistook a 'sharp drop rebound' for a 'bottom.' A crypto asset dropped 25%, then suddenly rebounded 10%. I thought it was time to bottom-fish and went all in — the result was that I was trapped for half a year, during which it dropped another 30%. Opening the market software every day felt like 'opening a blind box,' but all I got were knives.
After losing this time, I concluded: rebounds after sharp declines are all 'bait.' The true bottom is never 'guessed,' but 'waited for.' A real bottom must meet two conditions: first, it has gone through 'low-volume consolidation' (trading volume drops to recent lows, price fluctuations narrow, steady like an ECG); second, there must be a 'confirmation signal' — three consecutive days of gently increasing volume and rising prices.
Last year, a certain popular crypto asset consolidated for two months, just as these two signals appeared. I entered the market in batches, and in half a year, it tripled. This is not luck, but the inevitable result of 'bottom confirmation': a low-volume consolidation indicates that funds are 'building a bottom,' and a gentle increase in volume indicates that funds are 'entering the market.' Following the funds is the way to avoid missing out.
Finally, let me say a harsh truth: Making steady money in the crypto market relies on 'not being too serious.'
Now, I only trust two things in the market: volume and 'a calm mind.' K-lines can be faked, indicators can be manipulated, but trading volume cannot deceive people — it is the 'truth' of the funds, telling you whether someone is secretly accumulating shares or if the main players are running away.
And 'a calm mind' is even more important: Don't be greedy and chase highs, or you will be used as a 'buyer' by the main players; don't be afraid to bottom-fish, or you will miss the real bottom; never go fully invested, nor fully cash out, keep 30% of your funds as 'emergency supplies,' and wait for confirmed signals to act.
In the crypto market, stories of getting rich overnight are mostly 'advertisements for a scam.' The ones who can truly make money in the long run are people like me who are 'a beat behind' — when others are frantically trying to escape, I stay calm; when others chase high prices, I observe; when others are bottom-fishing, I wait for signals. After all, in this market, 'surviving' is more important than 'making quick money,' and 'earning steady money' is more reliable than 'making big money.'
Have you also experienced 'getting trapped by chasing high prices' and 'buying the bottom halfway up'? It's not that you're unlucky; you just haven't grasped the 'rules' of the market. Follow me, and next time I'll break down the specific judgment criteria for 'low-volume consolidation,' teaching you how to accurately identify the 'footsteps' of funds, so you won't be the 'victim' getting cut — after all, in the crypto market, following experienced people saves a lot of blood and tears compared to blindly venturing out!
