Those who survive in the crypto market are often not the ones who stare at the charts for ten hours a day, but those who know how to set limits for themselves.

I've seen too many friends who entered the space with great ambition, studying all kinds of technical indicators, only to see their accounts go steadily south. Where did things go wrong? It's not that the methods aren't advanced enough, but that human nature is the real hurdle.

**First, here are three pitfalls—just stepping on one is enough to hurt**

It's easiest to get impulsive when prices soar. When others are going crazy at the top, you need to learn to stay on the sidelines. The real opportunities to act usually come when the market is full of despair and no one dares to check the charts.

Never put all your eggs in one basket. Keep 20% cash on hand so you have ammunition when the market crashes. Those who go all-in can only accept their fate when a black swan hits.

Blowing all your ammo at once is a big taboo. Opportunities rotate quickly in the crypto market—miss one coin today, and another might take off tomorrow. Entering in batches gives you the ability to keep fighting.

**Now, a few practical tips**

It's best not to take action during sideways consolidation. When prices are choppy and direction is unclear, entering at this time is pure gambling. Wait until there’s a clear breakout and confirmed direction.

Don’t panic over a single big red candle. Often, this is just a shakeout move—panic selling actually creates buy-the-dip opportunities. Learn to think contrarian.

There’s always a rebound after a crash. The harder it falls, the stronger the bounce tends to be. The key is to stay calm—only those with cash on hand can catch falling knives.

Building a position is all about rhythm. I personally like to add a bit more every time the price pulls back 10%; this way, my average holding cost gets lower. Don’t go all in at once—leave yourself some room.

You need to distinguish the nature of a sideways market. After a sharp rally, sideways trading might be a sign of distribution—protect your capital if needed. After a steep drop, don’t fantasize about a V-shaped reversal—cut your losses decisively if necessary.

One last point: your hands will itch the most during sideways markets. Data shows most liquidations happen in choppy conditions because frequent trial and error eats away your capital. Sometimes, doing nothing is the best strategy.

These methods may seem clumsy, but they work. The ones who make money in the market are never those who trade the most, but the few who can control themselves and stick to their principles.