How to stop losing money in crypto market

I’ve been trading crypto since 2017 and gained some experiences that I think might be useful for people who want to earn money from this field. As English is not my first language so please excuse any mistakes.

Rule #1: Only invest idle funds.

We all know that cryptocurrency is a high-risk investment, so you can only invest with your spare cash. This means that even if you lose everything, it won't have much of an impact on you.

One common error here is that you are too greedy and believe you can earn a lot of money. This way of thinking frequently leads to poor decisions, such as investing too much money in cryptocurrency or lending money to friends or family. And when the market does not go as your expectation, you will be unable to repay the loan. The consequences are so bad that you are not only heavily indebted, but you are also putting people in a bad position.

Rule #2: Only invest when you don’t have to make ends meet.

I saw many people who were struggling to live a normal life but still invested like a moth to a flame in the hope of changing their circumstances.

You must understand that this money game is full of sharks and wolves, also known as Game Makers. The people with the highest win rate are project owners, crypto-exchange owners, brokers, investment funds, and so on, while the rest are Game Players with the lowest win rate. If you are struggling to make ends meet, you should prioritize earning active income from your work in order to create a sustainable and stable income before considering financial investment.

Rule #3: Invest in good projects.

This sounds obvious but not everyone understands it thoroughly. The majority of people who fail to make financial investments, particularly those who frequently invest in multi-level financial projects with extremely high returns, because they rely on the advice of others rather than making their own decisions.

Apart from a lack of financial experience to evaluate and classify a project, most investors do not make their own decision to participate or not in a project because they do not know where or how to begin.

Rule #4: Dollar-cost averaging (DCA) investment strategy.

DCA according to the ratio 6-4. 60% to invest in secure projects and 40% in venture projects. But this rule depends on your personality. It can be 50-50 or 70-30, 80-20. But remember shouldn't put all your eggs in one basket.

Rule #5: Set a profit target and stick to it.

Many new investors first step into the crypto market make the mistake of taking gains too soon and not cutting losses. These two fundamental errors cause investors to either make little profit or lose a lot of money, if not lose all.

Always note that "taking gain is never wrong," but it must be done correctly and in sufficient quantities. You must set a profit target from the start. Set the target at x2 for safe and long-term investment projects; for higher-risk investment projects, set the target at x5, x10, even x30, x40...

Rule #6: Control your greed, fear and regret.

This rule seems simple at first glance, but it is extremely difficult to put into practice. As a result, you're more likely to end up in a tragic situation. For example, you invest in a project from the beginning and purchase the project's coin at a low price, but because you can't control your fear, you sell as soon as the price rises. Then, as the coin continues to rise, you can’t control your greed to jump in. And at this point the tragedy occurs, because the price has already reached its peak.

Rule #7: After each successful take profit, convert into assets.

The ultimate goal of Game Makers is not to hold the most coins, but to have as much USD as possible. So If you are already making a profit from this financial market, you can convert into assets with long-term growth potential, such as real estate.

The above are my rules of investing. Nice to discuss with you all.