5 Years in Crypto: 5 Hard-Learned Lessons to Survive Every Cycle

I entered the crypto market in 2019. I have experienced DeFi Summer, the NFT craze, crazy bull runs, and freezing winters that cut to the bone. My account has burned out before, and at times, it has multiplied dozens of times. Today, I’m not here to talk about “mysticism,” nor to boast about profits, but to share 5 core experiences that can be converted into real money. If you can absorb 3 of these, chances are you’ve already surpassed 90% of small investors.

1. Rapid Rise, Slow Correction Is Clearing Out – Fast Rise, Breaks Down Is a Trap Rapid increase followed by slow correction: don’t rush to sell When prices surge strongly and then go sideways or adjust gradually, it’s very likely a process of shaking out impatient traders. The market needs to “cleanse” itself before moving further. As long as the main trend isn’t broken (for example, if the price still holds support on the larger timeframe), holding sometimes proves more effective than all swing trading strategies. Vertical spike then sharp drop: prioritize exiting Conversely, if a coin jumps by several tens of percent in a very short time and then quickly halves, it’s often a bait to lure buyers. Such volatility rarely forms a sustainable bottom. Trying to “catch falling knives” in these situations usually only causes accounts to bleed faster.
2. Shock Drop, Weak Rebound Is Distribution – High Price with Low Volume Is a Sign of End Strong decline followed by weak rebound: don’t rush to buy the bottom A quick drop accompanied by increasingly weak rebounds usually indicates selling pressure still dominates. A true bottom doesn’t form from a single bounce but requires time for accumulation, sideways movement, and multiple tests of supply and demand. Sideways in a high zone but volume decreases: be cautious If the price doesn’t fall but liquidity diminishes, it means funds are withdrawing. When no new players enter, the market is very prone to reversal. Prices may stay still, but risks are quietly increasing.
3. One Day Volume Spike Is Not Enough – Persistent Money Flow Is the Real Signal Many see a candle with extremely high volume at the bottom and believe “big money has entered.” In reality, it could just be matching trades to create noise. A more reliable signal is a period of narrow volatility, low volume, followed by steady volume increase over several days along with stable price growth. This often indicates large funds participating patiently and discreetly.
4. Trading Is a Psychological Game – Volume Reflects Crowd Emotions Price is just the final result; volume is what truly tells the story of greed and fear. When the community becomes overly excited, with abundant good news, everyone talks about getting rich quickly → risks gradually increase. When the market is in despair, few dare to discuss opportunities → sometimes it’s the best time to observe and prepare. Understanding crowd emotions helps you avoid being swept away by waves of sentiment, which cause most investors to buy high and sell low.
5. Surviving Is More Important Than Getting Rich Quickly – Discipline Is the Strongest Leverage Capital management Don’t bet everything on one trade. Properly dividing your capital helps you survive long enough to wait for big opportunities. Every position should have a clear threshold for mistakes. Self-management Take profits gradually when in profit, don’t wait for “absolute peak.” If you keep losing, pause for a moment. The market is always there, but your mental state isn’t always ready. Many fail not because of lack of knowledge, but because they can’t control themselves. Conclusion Crypto has never lacked opportunities. The rarest qualities are patience and discipline. Most losses don’t come from moving slowly but from running wildly in the dark. These experiences aren’t “sacred truths,” but the logic behind them repeats through every cycle: use rules to curb greed, use time to increase probability.