Crypto investors in the circle are dividing quickly. Some can steadily accumulate amid volatility, while others frequently step into traps. The difference isn’t in the amount of information, but in whether they grasp a few ironclad market rules.

These rules may sound simple and blunt, but few people stick to them — precisely because of this ruthless discipline, which ultimately determines the fate of their accounts.

**Level 1: Manage risk properly; full position is never an option**

90% of beginners make the same mistake: when prices soar, they can’t resist chasing, and end up being trapped at the top. This isn’t an IQ issue, but a psychological one. True players do the opposite — when the market is bloodied and most people dare not look at the app, that’s actually the best window for deployment.

Another trap is holding a full position in a single coin. That’s like betting all chips on one number, and the outcome is predetermined. Keeping about 30% in liquid funds allows you to bottom fish during crashes. Full position equals cutting off your own retreat; no matter how tempting the opportunity, you can only watch helplessly.

**Level 2: Understand the truth about consolidation**

Consolidation isn’t rest; it’s preparation before a trend reversal. High-level sideways trading often indicates risk accumulation, while bottoming out may signal an impending reversal. 80% of liquidations happen during sideways periods — that’s when hands get itchy and traps are easiest to fall into. Waiting for confirmation of the trend direction is more profitable than rushing to buy in.

**Level 3: Learn to think contrarily**

A scary big red candle on the K-line? That’s often not a signal, but an opportunity. The market’s bottom is found in despair. Conversely, during frantic surges, vigilance should be at its highest. Buying on red, selling on green may sound counterintuitive, but that’s how the market operates.

**Level 4: Crashes follow patterns**

The speed of a crash determines the strength of the rebound. The slower the decline, the gentler the rebound; the crazier the drop, the greater the rebound potential. When a waterfall decline occurs, prepare to scoop up chips — at this point, risks are actually released most thoroughly.

**Level 5: Strategy is key for both entering and exiting**

In the bottom zone, add 10% to your position for every 10% drop — this effectively lowers your average cost. At high levels, after a sharp rise, if sideways signals appear, don’t be greedy — withdraw your principal first and let profits run freely. Conversely, during sideways periods in a plunging stock, sticking to cutting losses is more rational.

The crypto circle isn’t short of opportunities; what’s lacking is execution. These five rules may seem simple, but few people truly follow through.