The Law of Survival in Crypto: The Secret to Big Money Lies in Emotional Management

After years of navigating the crypto market, I increasingly realize a harsh truth: most people lose not because the market is too brutal, but because they cannot control their emotions and trading habits. Especially with small accounts, the feeling of “must trade continuously to have a chance to turn the tide” is the fastest way to crush your account. This article is not about 10x gains or coins that multiply hundreds of times, but about how to survive long enough to eventually make big money.

1. Continuous Trading: The Starting Point of Account Erosion The most common mistake among beginners is equating frequent activity with being highly diligent. But in crypto, high trading frequency often means high fees, many mistakes, and constant emotional wear. I once witnessed a trader who was a former programmer, very skilled in technical analysis. But during the 2018 bear market, he kept trying to catch the bottom – guessing the top, and as a result, his account nearly halved. Later, he summarized very honestly: “It’s not that the market doesn’t give opportunities, but I wanted to catch every wave, only to get slapped by the market repeatedly.” In reality, the gap between accounts is not created by trading every day, but by a few correct decisions over a year. For example, after the crash on 12/3/2020, those who patiently gradually invested at low prices captured the long-term rally. Meanwhile, most traders, out of fear or impatience, sold early or kept flipping positions, inadvertently kicking themselves out of opportunities.
2. Keep Cash: Always Have the Power to Choose Holding some cash is often seen as “missing opportunities.” But in reality, cash is the strongest weapon when the market becomes irrational. When the market is extremely euphoric, many fear missing the boat and go full margin, full spot. But just one correction can cause their psychology to collapse. Conversely, those with cash can calmly wait for panic sell-offs driven by emotions, where risk/reward ratios become attractive. This is even more true in derivatives trading. Many people share: “The biggest pressure always comes when you are too eager to make money.” When entering a trade with the mindset “must win,” traders are very likely to break discipline, move stop-losses, hold onto losses, and ultimately blow up their accounts. Having cash means having the opportunity to correct mistakes.
3. Don’t Understand the Project’s Logic, You Will Pay the Price Sooner or Later Crypto is a fertile ground for all kinds of projects: from serious to scams. Some whitepapers are very polished, slides look like a million-dollar startup, backed by KOLs – and FOMO spreads quickly. I’ve seen many people rush to buy hot coins because “everyone is talking about it,” only to get caught at the top. Coins that can be held long-term are those you truly understand: what problem they solve, where the money comes from, and why they have long-term value. Bitcoin is a typical example. Early holders of BTC can withstand the 80% crash in 2018 not because they are brave, but because they believe in the decentralized logic and its role as a store of value. Remember: trading real money is very different from demo. Full margin demo trading is easy, but real money dropping 10% can make you panic. Before each trade, ask yourself: Why am I buying?Where am I wrong?What is my stop-loss level? Answering these three questions can help you avoid most basic mistakes.
4. The Happiest Place Is Often the Most Dangerous In crypto, “good news is a sign to be cautious.” When a coin is constantly mentioned in the media, and the community is cheering, it’s very likely that the price has already reflected the expectations. In 2021, many altcoins surged immediately after good news announcements, then quickly dropped 40–60%. Latecomers became liquidity for whales to exit. Also, trading around holidays or special occasions should be done cautiously. Thin liquidity makes prices easily manipulated by large orders. Trying to trade during these times is no different from gambling.
5. Cut Losses: Admit Mistakes to Protect Capital There’s a well-known saying in investing: “Bull markets make everyone look like a genius; bear markets reveal who’s really swimming without clothes.” Cutting losses is not a failure, but an early acknowledgment of being wrong to preserve capital. Those who “hold onto their beliefs until the end” often end up with accounts close to zero. Many long-term survivors share a common trait: strict stop-loss. For example: Losing 15% means exiting, no negotiationsLosing over 5% in a day means stopping tradingA winning streak does not mean increasing volume recklessly Regarding technical indicators, don’t learn too many. Moving averages, volume, support and resistance zones are enough to build a simple but effective system. Most importantly, execute mechanically, without emotional negotiation. Conclusion Surviving in crypto is not a sprint, but a marathon of discipline and emotion. Trade less, research more; control the urge to “make money immediately”; patiently wait for high-probability opportunities – these are simple-sounding principles that eliminate most players from the game. In a 24/7 market, lasting long is more important than quick wins.