Many people enter the crypto world, study a bunch of technical analysis, become experts in candlestick patterns, but in the end, they still get caught off guard. Actually, this stuff is really not hard to understand — in the end, it’s not about whether you can read charts.

**Level One: Principal is the Lifeline**

Using rent money and living expenses to trade crypto is not investing; it’s gambling. Once your mindset collapses, your fingers won’t stop, and you’ll go all-in, trade impulsively, and cancel stop-loss orders. I’ve seen too many people lose from 100,000 to 10,000 this way. Using spare money is the baseline, not a recommendation.

**Level Two: Don’t Force Yourself Into Unknown Things**

"This wave is different" — one of the five most expensive phrases in the crypto circle, and many people fall for it. Instead of stubbornly holding onto an unfamiliar project, it’s better to cut losses early. That’s not admitting defeat; it’s about surviving and exiting. Holding onto bad positions is called persistence in a nice way, but actually it’s handing the right to lose money over to the market.

**Level Three: Doing the Opposite Is Where the Gains Are**

The real way to make money is actually counterintuitive. When others chase the rally, you’re afraid; when others are terrified and selling off, you have the chance to buy low. But the most likely time to get wrecked is precisely during these moments — thinking you’ve "suddenly realized" something after making a small profit.

**Level Four: Control Your Mouth and Your Heart**

Not wanting to sell when prices are rising, and refusing to cut losses when prices fall — this is the standard death trap for retail investors. Less thinking "I feel like," and more asking yourself: Do I really understand this project? How much could I lose in the worst case? Can I accept that?

The market’s cruelest place is right here: avoiding ten crashes, but losing once on a "bottom-fishing" attempt; when the account is up, everyone is a stock god, but when it falls, they instantly become philosophers. Remember, the market is not a lover; if you need to run, just run. Don’t watch it rise and be reluctant to let go.