3 Harsh Truths That Determine Whether a Person Can Survive in the Crypto Market

Many investors enter the crypto market with the hope of “quickly changing their lives,” but most leave with their accounts evaporated and a sense of exhaustion. The reason is not due to “lack of luck,” but rather a lack of three minimum platforms to survive: correct understanding, trading discipline, and risk management mindset. 👉 Below are three truths distilled from countless painful lessons that almost anyone who wants to go the long way in this market must understand clearly.

1. Short-term profits are often just a “lucky illusion”, not trading ability. Many newcomers to the market enter with just a few hundred dollars, trading small waves, and during sideways market phases, they easily engage in “buy low - sell high.” The steadily increasing profits lead them to mistakenly believe that they have grasped the rules of pricing. But in reality, it is not the “newbie protection phase”, but just a phase of luck coinciding with the market wave. When the market reverses strongly, the illusion of capability disappears, and the account begins to plummet. The biggest trap for newcomers is confusing luck with skill. A winning streak does not prove your analytical ability – it only shows that the market has not knocked you down yet.
2. Refusing to cut losses is the fastest way to account burn. Most account fires do not come from a strong dump, but from a mentality of not accepting mistakes, from trying to hold onto losses in the hope that the price will come back. When the loss is small, do not take action. When the loss is greater, one is even less daring to act. When the market moves far from the entry point, the order has exceeded the account's capacity to bear and is liquidated. The paradox is that many people see cutting losses as a failure, whereas in reality: Cutting losses is not losing money – cutting losses is buying more time to continue to exist. A secure trading system always comes with two mandatory principles: Do not allocate more than 10% of your account to a single order or a single asset. Do not allow any order to lose more than 8–12%. Ignoring this discipline, no matter how good the analysis is, the account is still difficult to avoid disaster.
3. The Market Doesn't Kill Anyone Because of Losses: What Destroys an Account is the “Greed” Mentality Many people have previously multiplied their accounts 20–50 times in the memecoin market or during strong bull runs. However, after the account increases rapidly, the psychology of greed also rises: wanting more, wanting “to reach a certain number before cashing out,” wanting “to add a little more,” wanting “to recover what I just accidentally lost.” They start: Not taking profits when needed FOMOing at the peak Entering riskier trades to “quickly grow the account” Losing discipline thinking that one has “figured out the market” And then the account kept decreasing, the impatient mentality caused them to fall into a spiral: Loss → try to recover → more loss → try to recover harder → completely burned out The frightening thing is not the inability to make money, but the illusion of the money “that should have been there.” People are not sad about losses, but rather about “dropping from 30,000 to 10,000.” It is this mentality that causes investors to make irrational decisions.
4. Altcoin Trading: It's Not Gambling, But Finding Opportunities with a “High Probability” Altcoins are not off-limits — but you must understand the right way to play. Not every altcoin is worth entering a trade. The important thing is the probability, not the expectation of a big gain. An altcoin transaction that is safe enough must meet: ✓ There is clear cash flow and funding fees Negative long-term funding rates create an advantage when opening long positions. You can earn fees while also having a high probability of price increases. ✓ Liquidity and market capitalization are at a “moderate” level. Too large: hard to create strong waves. Too small: easy to have liquidity withdrawn or to manipulate the price. ✓ Do not rush into tokens that have just increased by 5–10 times These codes are often included in the liquidity provider's dumping plan. Latecomers only play the role of “putting money in for others to withdraw.”
5. Three Survival Principles to Limit 50% Account Burn Risk (1) Choose the right asset, avoid following the crowd. Prioritize codes with stable funding and clear liquidity. Avoid codes that are experiencing rapid increases or are excessively pumped. Do not buy because of “word of mouth,” “people are buying in,” or “the community is buzzing.” (2) Risk management like a machine Each code a maximum of 10% of total capital. Never average down. Profit 15–20%: take profit in parts. Loss 8–12%: cut immediately. (3) Psychological control – do not trade to “recover”, only trade when there is a reasonable entry point. Do not try to recover in one order. Do not expect to “turn the tables overnight”. Set long-term survival goals, not a “one-night life change”. Conclusion Crypto is not a place that turns the poor into the rich quickly. Crypto is a place where disciplined people take money from the undisciplined. Who can control greed – live. Who controls the risk – wins. Those who trade based on emotions will sooner or later become “liquidity providers.” To go far, start by preserving capital, then think about making money.