Crypto trading ultimately comes down to not technical indicators, but psychological resilience and discipline.

Last year, Bitcoin experienced a correction cycle from $120,000 down to $87,000. During this period, an interesting divergence appeared: those "smart" accounts that buried themselves in communities and chased highs and sold lows saw their funds shrink, while some seemingly less active investors following fixed strategies saw their funds grow. Careful observation reveals that this reflects the fundamental difference in participants' mindsets.

**Three Bottom Lines to Follow**

**1. Beware of FOMO, Establish Independent Judgment**

Last month, a popular token surged 300%, attracting a flood of newcomers. A week later, the price retraced 60%, trapping many at the high. This is a typical case of "Fear of Missing Out" (FOMO) — the most frantic market moments are often when the last buyers enter.

The solution is simple but requires discipline: when your social circle is flooded with profit screenshots and calls of "Go go go," it’s a signal for you to gradually take profits; when the community is filled with lamentations and constant "cutting losses" sounds, it’s time to consider scaling into positions gradually. The hardest part of contrarian thinking is watching others make money while you hesitate, but in the long run, this restraint prevents you from becoming the final bag-holder.

**2. Strictly Diversify Positions, Keep Ammunition Ready**

I’ve seen people put all their assets into a so-called "zero-risk" project, only for the project team to disappear with the funds, losing everything. Such incidents occur periodically in the crypto space, but the lessons are often forgotten. The truth is: there are no absolutely safe projects, only reasonable risk management. Never put all your chips in at once, always reserve room for unexpected situations — this is not conservatism, but the basic rule of survival.