Many people face the same dilemma after entering the crypto world: when exactly should they exit? The answer to this question often determines whether you make a profit or suffer a loss.

From my seven years of market experience, the most common mistake is failing to distinguish between shakeouts and market tops. In 2018, I invested 150,000 yuan, which grew to 18 million over seven years. I experienced moments where my account shrank by 97%, and also crazy days with a million yuan profit, but the key to survival lies in mastering a few ironclad trading rules.

**Shakeouts and Market Tops: One keeps you earning, the other prompts you to cut losses in time**

Early on, I couldn't tell the difference between these two, which led to big losses. Once, a coin I held surged 20% rapidly and then started to decline slowly. I was scared and quickly sold all my holdings, only to see it rise another 50% afterward. It was then I realized I had fallen into the trap that market makers love.

Trading volume is the true "speaker." Market tops are often characterized by "high volume sharp declines," while shakeouts are "shrinking volume with slow declines." I personally experienced this during Ethereum's rally last year: after a 35% single-day surge, it immediately turned downward, but I noticed that the volume during the decline didn't significantly increase, leading me to judge it as a shakeout and avoid bottom-fishing. A month later, a new rally indeed followed.

Market makers are most aware of retail investors' psychological weaknesses. After a rapid price increase, a slow decline often triggers most people's instinctive fear of profit shrinking, prompting hurried selling. True opportunities are often hidden within these panic waves.

**Shrinking volume at high levels: the most easily overlooked warning sign**

In 2019, I held a mainstream coin that repeatedly oscillated at high levels. For a period, the trading volume suddenly plummeted sharply, but I didn't pay much attention. A week later, the coin's price started a "half" decline. This lesson taught me that abnormal changes in volume can signal a turning point more reliably than the price itself.

What does shrinking volume at high levels indicate? It shows that holders are no longer optimistic about the future, and large funds are quietly exiting. Being greedy at this point is too dangerous. Conversely, a sudden moderate increase in volume at low levels can be a good opportunity for stealth accumulation.