The first lesson to enter the crypto world is, simply put, learning to protect your principal. The money you invest is your "ammunition" for battle; once it's gone, the game is over. So first and foremost, be clear: never trade with money that affects your quality of life. Secondly, stop-loss is not optional but a mandatory requirement. Set your exit point for losses in advance to prevent a single loss from expanding infinitely—it's like wearing a seatbelt when driving, not to annoy you but to save your life.

Regarding capital allocation, a common mistake among beginners is putting all eggs in one basket. Buying all-in on a coin just because it’s hot, only to be wiped out in one market move. The correct approach is to learn to build positions gradually, diversify (but not excessively). All-in gambling mentality is especially dangerous in crypto; a sudden extreme fluctuation can knock you out easily.

For leverage contracts, the advice for newcomers is: don’t touch them. Leverage can indeed amplify gains, but it also amplifies losses even more. Without years of real experience in spot markets, jumping straight into contracts is like trying to run before you can walk—highly likely to end in a nasty fall. First, use real money in the spot market to feel the market pulse, and only after gaining enough experience should you consider advanced strategies.

The patterns of market ups and downs are also worth pondering. Instead of wasting effort guessing the short-term top or bottom, it’s better to respect the market and follow the trend. The market is always right—this sounds like a cliché, but it’s especially true in crypto. Use basic technical analysis (like moving averages, trend lines) to identify direction, then go with the flow—being trend-following is smarter than fighting against it.

Here’s an interesting market rule: when good news is exhausted, it often turns into bad news; when bad news is exhausted, it can become good news. When a highly anticipated event (like mainnet launch or exchange listing) actually happens, the market’s reaction may be opposite of what you expect—because the expectations have already been priced in. Conversely, when the worst news hits, prices may bottom out and rebound. This reflects the swings in market psychology.

Warren Buffett’s famous quote, "Be fearful when others are greedy, be greedy when others are fearful," is especially useful in crypto. When FOMO is rampant and everyone is chasing gains, stay sober and consider gradually taking profits. Conversely, when the market is panicking and everyone is selling, it’s a good opportunity to pick up projects that have been unfairly sold off. But this doesn’t mean blindly bottom-fishing—rational judgment is still necessary.

The last point, perhaps the easiest to overlook: don’t invest in what you’re not familiar with; don’t touch what you don’t understand. Don’t buy just because a coin sounds high-end or a big influencer says it will rise. Spend time researching the project’s fundamentals—what real problem does it solve? Is the team reliable? Are there technological innovations? Is the community active? Only invest in what you truly understand, so you can survive longer in this market.