From stepping into the pit to awakening, a crypto veteran learned 15 bull market survival rules through blood and tears.

Author: Based Money Lich King

Compiled by: Deep Wave TechFlow

During the last market cycle, both bear and bull markets, I made a lot of mistakes due to lack of experience. However, these mistakes were valuable lessons for me. I paid expensive "market tuition", but I also avoided many pitfalls that caused me to lose almost all my income. I summarized these lessons into a set of rules and followed them to the letter. Today, I want to share these rules with you. The purpose of these rules is not to make you rich, that is your business. The real point of these rules is to help you survive in this high-risk market. You know, even in a bull market, risks still exist, and you may be "exploded" due to operational errors.

Of course, the following rules are not absolute, but they can help you reduce risk in this uncertain market.

Rule 1: Never be one of the first attendees at a highly anticipated

blockchain event

If a blockchain event attracts widespread attention, the first participants are often punished. For example, early investors in Sushiswap suffered losses, as did the Otherside deeds project, and there are many similar examples. Those who bought into Sushi too early ended up paying a heavy price. The correct strategy is to wait patiently, wait until market sentiment stabilizes, and panic selling (FUD) or excessive hype (hype) gradually subsides, and then evaluate whether the risks and rewards are worth it. If the entire crypto community (Crypto Twitter, CT) is buzzing about something, early participation often fails.

Rule 2: Never use Perpetual Contracts (Perps) hastily

Perpetual contracts are for giga whales, not for ordinary retail investors. Most people are not GCR, Hsaka, Andrew Kang or Nexus. You should not trade perpetual contracts. This tool is typically used by whales to replenish positions or make small bets with low leverage. Leverage of 10x and above is like letting yourself fall into the clutches of the devil, don't try it. Perpetual contracts are the fastest way to clear funds, bar none.

Rule 3: Always assume bad intentions in others

You're in the "Wild West" of finance. There are no real friends here, even if there are people who act like your friends. There are countless stories of people being cheated in the market. Many people have been betrayed, attacked or even defrauded by those they trusted. You should assume that these people may be strangers with malicious intentions or even potential scammers. Don't trust anyone and assume everyone will dump your assets in the market.

Rule 4: Don’t blindly worship the founder

In this market, founders are the type of people who need to be most vigilant. They often leave investors and token holders with losses. For example, Do Kwon, Dani Sesta, Andre Cronje and others have disappointed investors many times, as well as Chef Nomi, the Starknet team, the founder of Celsius, etc. Don’t treat founders as heroic figures and assume they will cheat you, because they probably will.

Rule 5: If the team behaves suspiciously, it must "create panic" and

"pretend to care"

This rule is in addition to Rule 4. If you see a founder or team behaving questionably, you should take the initiative to "create fear" (FUD) about your assets and "pretend to care" (concern troll). By questioning the project's behavior, more people are encouraged to join the questioning team until the team abandons its questionable behavior. Those who blindly support a team have everything to lose, and you need to protect your own interests.

Rule 6: Never lock your tokens

Locking up your tokens for months was one of the biggest mistakes I've ever made. Remember, never do this! Locked tokens may face the risk of smart contracts being hacked. Additionally, teams tend to engage in dishonorable behavior when they know investors’ tokens are locked. For example, TempleDAO's Opening Ceremony event is a typical case. Don’t lock up your tokens, lest you become passive.

Rule 7: Stay away from Sisyphus

Sisyphus once conducted a $60 million rug pull and is still at large. If possible, avoid him and the projects he is involved in as an "angel investor." In this circle, Sisyphus is the most notorious seller. His behavior can be said to be that of a "predator" and a "destroyer" on the chain. Stay vigilant and take responsibility for your assets.

Rule 8: Don’t buy assets that are skyrocketing

Don't chase assets that are experiencing parabolic price increases. Although it may occasionally succeed, the probability of failure is much higher than success. Rather than taking risks, it is better to wait patiently for the market to correct.

Rule 9: Focus on market cap, not unit price

Many people will fall into the myth of unit price, especially XRP supporters who think that XRP can rise to $10,000, or that Shib can rise to $0.01. But in reality, these goals are impossible to achieve. We should base our judgment on whether market value is achievable, rather than simply focusing on price. However, if others want to believe those unrealistic price targets, you can let them go.

Rule 10: Remember to take profit

If you are currently experiencing financial difficulties in your life, it makes perfect sense to sell some of your assets to address those issues. This market will always exist and there will always be opportunities. Many people chase a target number in their mind (e.g., 50,000, 100,000, 200,000) only to experience profit taking. If these numbers can change your life, then cut your profits decisively. As Foo said, the goal is to earn the equivalent of two years' salary from the market. Such financial security will make you a better trader and make your life easier. This mindset adjustment will serve you well in the long run.

Rule 11: Don’t randomly connect to unfamiliar apps

Always be careful before using any new application as this may result in your assets being stolen. It is recommended to use a wallet with a smaller amount to test first, and then use the main wallet to ensure safety.

Rule 12: Don’t believe in the concept of “super cycles”

The so-called "super cycle" refers to the view that the market will continue to rise. Is this really a super cycle? I can't be sure. But if not, I don’t want to make the mistake of believing in this concept again.

Rule 13: Don’t give up in a bear market

When we enter a bear market again, hopefully you have followed Rule 10 and taken profits appropriately. The bear market is not scary, don’t give up because of it. In fact, the biggest gains tend to occur at the end of bear markets. I am a living example. In a bear market, you should focus on improving your abilities, honing your trading skills, and getting ready for the next bull market.

Rule 14: Do not buy tokens related to "occult" themes

Purchasing such tokens may have some unpredictable consequences. If you are a materialist and don’t believe this, then at least know that the founders of these tokens often have questionable ethics and bad intentions. Choose your investments carefully.

Rule 15: Stand up for what you believe in wholeheartedly

This is the most important rule and the only way to stay grounded and humble. While we may not be able to do it completely, making the effort to do it is a form of growth in itself.