Crypto Survival Handbook: Understand Market Laws Correctly, Take a Less Circular Path

Staying sideways without panic, riding hot rallies without chasing — you’ll see the market rhythm much more clearly.
Dear friends, the crypto market is not short of opportunities, but it’s also not short of traps. Many people lose not because of lack of knowledge, but because they let emotions lead the way. This article does not discuss complex indicators but focuses on practical rules that help you avoid unnecessary “learning fees.”

1. Going sideways is not boring — it’s when the market is incubating
   The sideways phase makes many people impatient because there are no “waves.” In reality, major moves are often prepared during the quietest times.
   Conversely, sharp upward surges are usually short-term explosions. When you jump in at the peak of enthusiasm, it’s very likely that big money is preparing to “dump.”
   Golden rule:
   Buy when cold, sell when hot.
   When everyone shouts “to the moon,” the risk has quietly increased.
   Smart money usually enters when the market is quiet and gradually exits as the crowd celebrates.
2. Recognize True Strength — Don’t Be Misled by Sudden Rallies
   Steady, gradual increases are often healthier signs than short-term spikes.
   Hot rallies often come with short-term peaks — at this point, consider taking partial profits instead of chasing.
   After a breakout, it’s normal for the price to retest the support zone, like the market’s breathing.
   Hold the key levels → still valuable to hold.
   Break deep → no longer an opportunity, but a risk.
   When an uptrend or downtrend accelerates, it’s usually a warning sign that a reversal is near.
   A gradual decline is less scary than a sharp drop — the latter erodes psychology and accounts.
3. Price and Volume — The Truth That Cannot Lie
   Volume is always the “vote” of money flow.
   Decreasing volume during a decline → could be a bottom-finding signal.
   Slow decline but increasing volume → be cautious, selling pressure remains high.
   Breaking important zones with strong volume → that’s the real opportunity.
   Rising prices but weak volume → fake rally, easy to be dumped.
   Many rallies look beautiful but lack backing money. Conversely, slow, steady volume increases are the real signals to watch.
4. Cycle Thinking — The Key to Staying on the Right Path
   Crypto often moves in roughly four-year cycles. Past notable milestones: 2013, 2017, 2021.
   Within the big cycle, observe smaller cycles to avoid losing direction.
   Each cycle has a theme:
   2017: ICO
   2021: DeFi & NFT
   The next cycle may revolve around RWA (Real World Assets) or other innovations.
   Even if the story changes, money flow follows familiar laws:
   Bitcoin → Major coins → Altcoins → Meme coins
   When meme coins explode wildly, it’s usually the end of the wave. When logic gives way to frenzy, risks are very high.
5. Psychology Determines How Far You Can Go
   These rules are not for memorization but to turn into trading habits:
   Don’t chase hot markets
   Don’t fear cold markets
   Always have clear entry and exit plans
   Markets change, but human nature remains the same. The same applies to money flow.
   Maintaining a stable mindset helps you outlast most players.
   Crypto is full of opportunities. What’s rare is those who survive long enough to seize them.
   Success doesn’t come from always hitting the top and bottom, but from avoiding obvious traps.
   The lights are always on. The question is whether you open your eyes to see the way.
   Learn to move in rhythm — that’s your greatest asset.