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A friend lost 2,200 yuan on a small altcoin, and this incident completely woke him up. He said that he had been chasing quick gains and making a fortune in the crypto market, until this bloody lesson made him realize a fundamental truth: in this market, those who survive the longest are never the most profitable traders, but the smartest ones who know how to avoid pitfalls.
Recently, he spent time reviewing his investment experience, from the initial joy of small gains, to the despair of huge losses, and finally summarized four survival rules. Today, I want to share these insights, especially for newcomers who just entered the space, hoping to help you avoid several years of detours.
First, let’s talk about why he got burned on that small altcoin. At that time, the coin skyrocketed over 4,300 times in a short period. Several friends around him also said they made a profit through it, and in a moment of impulsiveness, he rushed in. He didn’t bother to check the project’s background, technical strength, or application prospects; he just hurriedly bought in. Looking back now, that was a classic crypto investment mistake—greed combined with blindly following the trend. Retail investors love to do this—they always want to make quick money with small altcoins, but most of the time, they end up losing all their principal.
**First survival rule: Never touch unknown shanzhai coins; stick to mainstream cryptocurrencies.** This is the most valuable lesson he learned from investing 2200 yuan. Those unknown shanzhai coins have no real value at all; they are just manipulated by big players behind the scenes. Their price movements are 100% controlled by the manipulators, and retail investors who get in are just waiting to be cut. Mainstream coins are different—they are backed by established technical teams, have clear application scenarios, and high market recognition. Their price trends are relatively stable. Although they won’t make you rich overnight like shanzhai coins, they have the advantage of lasting longer and not dying out.