Six Rules for Long-Term Success in the Cryptocurrency Market

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Cryptocurrency 2025

You may have heard stories about how someone got rich by mining a bunch of bitcoins in 2012, successfully sold their NFT image , or received free coins in an airdrop, which they later managed to resell for a profit. These are great success stories, and you can only be happy for those who managed to be in the right place at the right time. But how can you make success in the cryptocurrency market stable and independent of chance? Six unspoken rules for a cryptocurrency investor will help you with this, which we will tell you about in this review.

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Rule number one: Create a financial cushion

The first and probably the most important rule of longevity in the crypto market is a capital reserve. The size of your financial reserves is of decisive importance. To become a successful crypto investor, you absolutely need a financial "cushion".

However, it should not be confused with a reserve of funds in case of some unforeseen life circumstances. This is capital that you have not yet invested anywhere, and it is in reserve outside the cryptocurrency market.

Many newbies think that they can earn from scratch, i.e. without any money at all. Let us note right away: this option is possible if you actively participate in various airdrops, launchpads and launchpools. But this is a completely different approach, and it is beyond the scope of this review. If you want to engage in trading and investments, then in addition to the funds that you plan to invest in the market, you will need additional capital.

Rule 2: 20% of funds in liquid assets

Keep at least 20% of your funds in liquid assets. These are assets that can be quickly and without significant losses converted into cash. In other words, this is something that you can easily sell and get money for it almost immediately. It is necessary to keep part of your funds in such instruments so that in the event of a sharp decline in the cryptocurrency rate for various reasons, you have the opportunity to buy them at a favorable price.

funds in liquid assets

Remember that the market will never adjust to you. You have to be on the same page with it and try to buy assets at the most favorable time. For example, the picture above shows the recent sharp decline in the Bitcoin to USDT rate. As you can see, in just one week, the BTC rate has fallen by 30%. This is a great time to add to your position. But to do this, you need reserve funds in liquid assets.

Rule 3: How to Identify the Perfect Moment to Buy and Avoid the FOMO Trap

time is money

Another important piece of advice is to ask yourself not what coins to buy, but when to buy them. The second question is much more important. If someone advises you to invest in something immediately, it is better to conduct your own research and make sure that a particular cryptocurrency project is reliable and promising: study its white paper, development team, partners, and reviews from other investors.

Only after this can you start analyzing the charts and looking for the moment to make deals. Do not rush. The market will not go anywhere and will always provide an opportunity for investment. In addition, there are periods when it is better not to trade, but to study the cryptocurrency market, new instruments or projects. This happens when the market is in the overbought zone and is trading near the maximums. In this situation, it is much more useful to devote your time to learning something new and wait for a more favorable moment to make a deal.

In principle, timing – determining the best time to make trades – is more art than science. For example, buying at the bottom is not always justified. It is not for nothing that there is a trader's saying: "He who buys the first bottom, the second is given as a gift." On the other hand, when everyone is shouting from every iron that everything is growing and taking off, and even a random deal brings profit, it is worth thinking about the possibility of an impending collapse and being especially careful with new purchases.

fear of loss of profit.

The most important thing is not to fall into the FOMO trap, which is an abbreviation for the English expression "Fear Of Missing Out". Traders and investors are especially susceptible to this syndrome, when they experience an almost irrational desire to buy something immediately due to anxiety and worry about missing out on something very important and valuable.

This is especially evident when there is a sharp rise in the exchange rate of some very popular coins that everyone has heard about: bloggers talk about them in their videos, analysts write articles, and ordinary traders discuss them on social networks and forums. These are simply ideal conditions to fall into the FOMO trap.

Usually, a recent chart of such a coin is cited as an argument, with the words: "Well, I told you it would grow. You see, a week ago it cost this much, and today it's already this much." And a crowd of newbies rushes to buy this coin immediately, ignoring possible risks and not taking into account that such sharp price increases can be temporary and are often accompanied by an even greater correction.

The thing is that many projects grow in price solely due to PR, and not due to the growth of their intrinsic value. Such coins have been nicknamed "shitcoins". As a rule, they have no real value, no development prospects, and are created only for the purpose of quickly enriching their creators. Here are a few of them:

BitConnect ($BCC) is a typical scam pyramid that stole billions of dollars of investors' money.
OneCoin didn't even have its own ticker, as it's not a coin, but essentially a fraudulent scheme that collected about $4 billion from gullible investors and was never listed on any exchange.
PonziCoin ($PONZI) is a popular project named after Charles Ponzi, the creator of the largest financial scam of the early 20th century, in which he paid profits to his investors at the expense of new investors' money.
Osama ($USM) is a token with the logo of Osama bin Laden that caused an international scandal.
The Shiba Insider ($SHIB) is a version of the Shiba Inu created to enrich its creators.

As we can see, the business of Charles Ponzi and his followers is flourishing. Therefore, be extremely careful and cautious, especially with tokens that are not traded on major cryptocurrency exchanges .

Rule 4: Use convenient tools for analysis

Use convenient live charts for analysis with a rich set of technical analysis tools from TradingView. Oddly enough, this is not at all obvious for beginners who try to analyze the charts of their chosen coins directly in the exchange application. It is not convenient to do analysis in it and many analytical tools are simply not there.

analysis by tradingview

Please note that the exchange application is designed to monitor the current situation, and not to conduct a full-fledged technical analysis.

Rule 5: Learn to read charts like a pro

Another tip: draw on the chart of the chosen cryptocurrency, mark support and resistance levels, channels, trend lines and other important elements. Feel free to create scenarios of future price movements using the Price Projection tool to imagine how you see possible market trends.

reading charts

It will then be very useful to compare the actual price movement of the asset with your forecast. This exercise will help develop your forecasting skills and improve your understanding of the cryptocurrency being traded. Over time, it will be useful to look back at your "cave painting" and remember what you were thinking before you entered the trade and compare it to how the market actually moved. Everyone becomes very smart and capable after the fact, but comparing your past vision with the present can be very useful. It allows you to better understand your own mistakes and improve your skills for more accurate forecasting in the future.

Rule 6: Don't trade futures until you've learned to trade the spot market.

spot trading

A piece of advice that all newbies should heed: do not move to futures trading until you have achieved success in the spot market. Futures trading, due to the increased size of your trades using funds provided by the exchange, can not only increase the profitability of your trading operations, but also increase the risks.

Surely many are afraid that they will not have time to jump on the "carriage" of the growing market train leaving the platform. Many beginners are afraid that they will not have time to earn a lot of money in the current bull market. And they experience great disappointment, seeing how many coins have taken off, and they did not have time to participate in this movement.

Be prepared for the fact that no one can completely get rid of the feeling of missing out on the crypto market. There will always be sectors with incredibly successful coins that you will learn about at the moment when they have already shown thousands of percent growth. It is important to understand that random profits, even incredibly large ones, can turn against you over time.

Those people who accidentally or on someone's recommendation earned money on one coin, doing it absolutely thoughtlessly, in the long run will lose not only this money, but also their initial capital. It is very important for beginners to learn how to systematically generate income, and not rely on chance. Therefore, systematically generating profit is much more important than earning a lot, but once.

Conclusion

In the cryptocurrency market, each investor is responsible for their own decisions. Our six rules, which we have described in this review, will serve as a reliable basis for building your investment strategy. However, remember that the market is constantly changing, and what worked yesterday and today will not necessarily work tomorrow. Be flexible, analyze information and always make decisions independently. We hope that these six rules will help minimize your risks and increase your chances of long-term success.

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