Having navigated the crypto market for many years, I’ve noticed an interesting phenomenon—those who make the most money are often not the technical experts, but rather those who stick to the "dumb methods." Some have turned their initial capital into hundreds of times more, while most beginners lose their principal repeatedly chasing rallies and selling in panic. What exactly is the difference?

**Avoid the Three Major Deadly Traps**

Chasing rallies and panic selling is almost a common disease among crypto newcomers. Whenever the market surges, the voices shouting "This time is really different" flood in. What’s the result? Many get trapped at the peak, and for three years, they don’t have the courage to open their wallets again. True market veterans, on the other hand, tend to exit during bloodbaths, bottom-fishing when emotions are at their worst and mainstream coins are halved.

Going all-in on a single coin is essentially gambling. Putting all your chips into one coin? Risky to an extreme. The smart approach is to always keep enough cash reserves so that when the market suddenly crashes, you have ammunition to absorb high-quality chips.

Full position and all-in are even bigger taboos. Market opportunities are actually more abundant than you think; operating with a full position means giving up all flexibility. Top traders understand the art of position control—even if they make a wrong call once, they still have a chance to turn things around.

**Six Iron Rules, Master These to Surpass Most People**

**Consolidation Always Leads to a Breakout**: Prolonged sideways movement will eventually fall; excessive gains will revert. Whether it’s high-level sideways trading or bottom oscillations, both are brewing for a breakout. Before the market shows a clear direction, it’s better to earn less than to rush in recklessly.

**Sideways Trading is a Breeding Ground for Liquidation**: Many treat sideways as a resting zone, but in fact, it’s when risks gather. When the market is uncertain, controlling impulses is the real skill.

**Build Positions During Extreme Pessimism**: A big down day closing with a large bearish candle can be an opportunity. The most fearful moments in the market are often the safest, and the most greedy moments are the most dangerous—this logic applies especially in crypto markets.

**Rebounds After a Sharp Drop Are Usually More Violent**: Have you seen a flash crash? If the rapid decline can be quickly halted, the rebound can be astonishingly strong. The characteristic of crypto is that it falls fast and rebounds even faster.

**Use Pyramid Averaging to Dilute Costs**: Don’t go all-in at once; adding to positions in stages at the bottom area shows a master’s style. Add a layer of position every 10% drop, gradually lowering your average cost. When the rebound comes, it’s time to harvest.

**Be Decisive in Taking Profits or Cutting Losses When a Trend Reverses**: A sudden sideways move after a sharp rise? Take profits and don’t cling to the market. After a sharp drop and sideways consolidation? Don’t expect a big rebound—closing early preserves your strength for the next opportunity. Those who act decisively can survive longer in crypto markets.

Federal Reserve FOMC meetings, macro policies, mainstream coin trends—these are the big backgrounds influencing market rhythm. But ultimately, what determines your account balance are these most basic and straightforward principles.