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Surviving and making money in the crypto world isn't really about any special secrets. Some of the most effective methods are actually so simple that they seem insignificant, but it's precisely these "foolproof" approaches that have helped me avoid countless pitfalls. Today, I want to share some insights I've gained over the years.
**The first key: Don't blindly trust flashy indicators, learn to identify market makers' support**
Screens filled with technical indicators, volume comparisons, MA line combinations... I've seen too many people bury themselves in studying these, only to end up losing the most. Instead of fixating on those numbers, observe a phenomenon: when the market drops, some coins show significantly smaller declines. What's behind this? Most likely, market makers are supporting the price.
Why? The logic is simple—if they let it fall freely, retail investors will all exit. Once retail investors leave, who will they show the market manipulation to? So they dare not let these coins drop too much. Once you identify this signal, your job is to hold tight. The characteristic of supported coins is that they don't follow the decline, and they often won't miss the subsequent rebound.
**The second point: Two moving averages dominate the market**
The 5-day and 20-day moving averages—sounds old-fashioned? But these two lines, compared to more complex indicator combinations, are much more practical.
The operation logic is straightforward: for short-term trading, watch the 5-day MA—if the price stays above it, hold steady; if it breaks below, get out. For medium-term holding, watch the 20-day MA—if the price stays above, hold with confidence; if it drops below, stay alert.
Many people try to complicate simple things, thinking that adding more indicators can predict the market better. But in crypto, the most important thing is to catch the trend. Two lines are enough; adding more can lead to contradictions.
**The third secret: Volume-price relationship determines entry and exit**
The most common scenario during a major upward wave is volume-contracted rise—this is actually a good sign, indicating that the chips in hand are tightly locked, and there's no sign of market makers offloading. If you see volume decreasing during a decline, as long as the trendline isn't effectively broken, you can ignore it.
But one situation requires immediate reaction: volume breakout below the trendline. At this point, don't waste time thinking "I still believe in the future trend"—the market won't buy into your optimism. When it's time to reduce your position, do so; when it's time to run, run.
Most losses come from this point—being trapped by the feeling "it can still go up," and missing the best exit opportunity.
**The fourth bottom line: 5% stop-loss is an iron rule**
I've seen too many people lose 20%, 30%, and still stubbornly hold on, only to end up cutting at the bottom. Instead of doing that, it's better to set clear rules from the start.
My own standard is: if a short-term position hasn't shown clear progress after three days, get out; if the loss reaches 5%, cut the position without hesitation. This 5% stop-loss may seem strict, but it protects your capital and mindset. Once the discipline of stop-loss loosens, it easily turns into an endless hole.
Stop-loss isn't about admitting defeat; it's about continuing the fight at the right time. Protect your capital to seize the next opportunity. These methods aren't complicated, but because they are simple, most people tend to overlook them. Those who survive in crypto are often not the ones with the deepest research or most ideas, but those who can execute with the greatest discipline and firmness.