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

Author: Based Money Lich King

Compiled by: TechFlow

In the last market cycle, both in the bear and bull markets, I made many mistakes due to my lack of experience. However, these mistakes were valuable lessons for me. I paid a high price for the market, but I also avoided many traps that caused me to lose almost all my gains. I summarized these lessons into a set of rules and strictly followed them. 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 meaning of these rules is to help you survive in this high-risk market. You must know that even in a bull market, risks still exist and you may "explode" 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 among the first to attend a highly anticipated blockchain event

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

Rule 2: Never use perpetual contracts rashly

Perpetual swaps are for giga whales, not for the average retail investor. Most people are not GCR, Hsaka, Andrew Kang, or Nexus. You should not trade perpetual swaps. They are a tool that giga whales use to fill positions or make small bets with low leverage. 10x leverage or more is like letting yourself be controlled by the devil, don't try it. Perpetual swaps are the fastest way to get rid of your money, bar none.

Rule 3: Always assume others have bad intentions

You are in the "Wild West" of finance. There are no real friends here, even if someone acts like your friend. There are countless stories of people being cheated in the market, betrayed, attacked, or even defrauded by the people they trusted. You should assume that these people may be strangers with bad intentions or even potential scammers. Don't trust anyone easily and assume that everyone will sell your assets in the market.

Rule 4: Don’t idolize the founder

Founders are the most important people to be wary of in this market. They often cause losses to investors and token holders. For example, Do Kwon, Dani Sesta, Andre Cronje, etc. have disappointed investors many times, as well as Chef Nomi, the Starknet team, the founder of Celsius, etc. Don't treat founders as heroes and assume that they will deceive you, because they are likely to do so.

Rule 5: If the team is acting suspiciously, you must “create panic” and “pretend to care”

This rule is a supplement to Rule 4. If you find that a founder or team has questionable behavior, you should actively "create panic" (FUD) and "pretend to care" (concern troll) for your own assets. By questioning the behavior of the project, encourage more people to join the questioning team until the team abandons its suspicious behavior. Those who blindly support the team may lose everything, and you need to protect your own interests.

Rule 6: Never lock up your tokens

Locking up your tokens for months is one of the biggest mistakes I have ever made. Don’t do this! Locked tokens are at risk of smart contract hacks. Also, when teams know that investors’ tokens are locked up, they tend to do some shady things. For example, the Opening Ceremony of TempleDAO is a classic example. Don’t lock up your tokens to avoid putting yourself in a passive position.

Rule 7: Stay Away from Sisyphus

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

Rule 8: Don’t buy into skyrocketing assets

Don't chase assets that are going parabolic. You may succeed occasionally, but the probability of failure is much higher than success. Instead of taking risks, it is better to wait patiently for the market to correct.

Rule 9: Focus on market value, not unit price

Many people fall into the myth of unit price, especially supporters like XRP who think XRP can rise to $10,000 or Shib can rise to $0.01. But in fact, these goals are impossible to achieve. We should judge based on whether the market value is achievable, rather than focusing solely on price. However, if others are willing to believe in those unrealistic price targets, you can let them be.

Rule 10: Remember to take profit

If you are currently having financial difficulties in your life, it makes perfect sense to sell some of your assets to address those problems. This market will always be there, and there will always be opportunities. Many people experience profit taking because they chase a goal number in their mind (such as 50,000, 100,000, 200,000). If these numbers can change your life, then take your profits decisively. As Foo said, the goal is to make two years' salary from the market. This sense of financial security will make you a better trader and make your life easier. This mindset adjustment will benefit you in the long run.

Rule 11: Don’t connect to unfamiliar apps

Always be careful before using any new application as it may result in your assets being stolen. It is recommended to test it with a wallet with a small amount of money first and then use the main wallet after ensuring it is safe.

Rule 12: Don’t believe in the concept of a “supercycle”

The so-called "super cycle" is the idea that the market will continue to rise. Is this really a super cycle? I can't be sure. But if it is 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 at the right time. Bear markets are not scary, don't give up because of them. In fact, the biggest gains often come at the end of a bear market. I am a living example of this. In a bear market, you should focus on improving your abilities, honing your trading skills, and preparing for the next bull market.

Rule 14: Don’t buy tokens with “occult” related themes

Buying such tokens may bring some unforeseen consequences. If you are a materialist and do not believe in these, at least know that the founders of these tokens are often of questionable morals and bad intentions. Choose your investment carefully.

Rule 15: Stand up for your beliefs with all your heart

This is the most important rule and the only way to stay grounded and humble. Although we may not be able to do it perfectly, trying to practice it is a form of growth in itself.