4 Practical Rules to Help Traders Avoid 80% of Traps in Crypto

The crypto market is not a place to rely on luck to get rich overnight. This is a playground where big money constantly sets traps, while newcomers immediately find themselves in the position of the “tuition payer” as soon as they enter.

To survive and make money, you must understand how the market operates—not just chase after calls to “get on board” or “to the moon.” Here are the 4 most important practical rules to help any newcomer avoid most mistakes:

❶ When the Price Surges Wildly, Absolutely Do Not Chase

Vertical price spikes are common in the crypto market, but most are “FOMO traps” created by big players.

Easy-to-spot phenomenon: A coin suddenly rises 100%–200% in a few hours or 1–2 days. Media, group chats, and communities start chanting “you’ll regret not getting in.” Newcomers rush to chase the price → and immediately get trapped.

Reason: A rally without pauses = a “lure-and-dump” pattern. Big money wants to sell but needs others to buy, and the fastest way is to create FOMO.

Flawless strategy: Only consider entering when the price has pulled back and returned to a clear support zone (e.g., MA30, MA60, or a 2–3 day sideways region). Prioritize coins with high liquidity and stable volatility. Accumulate in portions instead of “going all-in” at once.

A price that surges too quickly isn’t necessarily an opportunity—sometimes it’s just a “sophisticated trap sugar-coated.”

❷ Read K-Line Correctly: Don’t Let a Single Red/Green Candle Fool You

Many newcomers see a big green candle and think “the trend has arrived,” but in reality, the market doesn’t rise in vertical jumps—it rises in steady, incremental steps.

Practical observation tips: Series of many small green candles → sustainable uptrend This is a sign of big money accumulating gradually, avoiding sharp moves to keep a low profile.

Many consecutive large green candles → short-term top warning If candles increase >5% over several sessions, the trend is often about to reverse.

Rising without pullbacks → extremely high risk No price base = unsustainable.

Fast rally – long sideways → likely distribution phase This is when the market tests sentiment; the weakest holders end up holding the bag.

Remember: Green candles are not always strength—sometimes they’re just the hook.

❸ Volume Is the “Truth Meter”: Without Volume, All Signals Are Meaningless

Not analyzing volume means trading blindly. Price can be “painted,” but volume is much harder to fake.

Two survival principles:

1. Sharp drop but NO volume → Panic sell (not dangerous) Drop is due to weak sentiment, not big money dumping. Usually recovers quickly.

2. Moderate drop but VOLUME DOUBLES → Bad sign (should exit) This is when “big money is fleeing the market.”

4 other important signals: Price rises but volume drops → False rally, dangerous. Big money not participating.

Price drops but volume drops → Downtrend is weakening, possible bottom forming.

Price makes a new low but volume contracts → High chance of a rebound.

Volume spikes at resistance zone → Beware of sudden reversals.

Volume says what price doesn’t dare. Trust volume more than candles.

❹ Stop Looking at 15m, 5m—Trends Can Only Be Seen on HIGHER TIMEFRAMES

New traders often get caught up in small price swings, causing constant emotional swings: Up 3% → “Altcoin season is here!” Down 4% → “I’m broke, better cut losses now!”

That’s trading on emotion, not logic.

Proper timeframes for trend analysis: Weekly (W): identify general trend. Daily (D): find reasonable entry points. 4H: fine-tune entries—but only after the larger trend is clear.

Golden rules: Weekly downtrend → all daily rallies are just technical bounces. Weekly uptrend → all drops are buying opportunities. Price breaks major support (MA60, MA200, previous lows) → cut losses immediately, don’t hesitate.

When the big trend reverses, fighting the market only leads to one result: losing.

In Summary

To survive in crypto, engrave these 4 words in your mind: DISCIPLINE – PATIENCE – EMOTIONAL CONTROL – RISK MANAGEMENT

Anyone who masters these 4 rules, even as a newcomer, can avoid most of the traps that other traders pay for with real money.