A day in the crypto world is like a year in the human world—this not only reflects the intense market volatility but also serves as a true testament to the huge costs many newcomers pay due to lack of experience.

After years of struggling in the crypto market, I have witnessed too many heartbreaking cases: blindly following influencers, leveraged liquidation, being controlled by FOMO emotions to buy high and sell low... According to data, about 79% of beginners experience losses or even exit within the first year.

Instead of waiting until you suffer heavy losses and then regret, it's better to learn these risk-avoidance tips now. Let me share the experience I’ve summarized over the years to help you avoid detours.

**Mindset is the foundation, not gambler’s psychology**

When I first entered this space, I also made the classic rookie mistake—treating the crypto world like a casino. Investing not with spare change, but with living expenses, emergency funds, and sometimes borrowed capital. This is almost the starting point of all rookie collapses.

"Only invest what you can afford to lose completely" sounds cliché but is a fundamental principle. A simple test: halve the amount you plan to invest. If seeing this number makes you uneasy, then you’ve overinvested.

The reality is harsh—waking up to find your account halved overnight. A 20% fluctuation within a day in the crypto market is not rare. If you’re using living expenses or borrowed money, your mindset will definitely collapse, and you’ll end up making the worst decisions.

My personal capital discipline is as follows: total investment should not exceed 10% of liquid assets, and a single project’s position should not exceed 5% of total funds. Additionally, always keep three months’ worth of living expenses in a safe account to ensure a fallback.