Last week at a dinner gathering, a childhood friend looked particularly heavy-hearted.

Six months ago, he invested 80,000 yuan into the crypto market, firmly believing that "spot trading is guaranteed to make a profit." As a result, his account now only has a little over 10,000 yuan, and the blow to his confidence is understandable.

His approach is all too typical: hanging out in various chat groups, blindly following the crowd's buy and sell signals, adding to his position whenever the price dips, hoping for a rebound to break even. When he finally sees the market picking up, he’s reluctant to exit, sinking deeper and deeper.

Many people think that avoiding leverage makes trading safe, but they don’t realize the hidden pitfalls in spot trading—hitting one can wipe out your entire capital.

How to avoid repeating the same mistakes? First, understand that those "about to skyrocket" calls in chat groups are often just a front for market manipulators unloading their holdings. Following these signals usually results in becoming the bagholder. During a downtrend, adding to your position is like throwing stones at a drowning person—it only increases your losses. Knowing when to cut losses is crucial and must be done decisively.

Second, don’t put all your chips into a single coin. Black swan events are unpredictable, and high project concentration can wipe out your account with one bad news. Diversification may seem less exciting, but it helps you survive longer.

Third, it’s very important not to rely too much on others’ advice. Instead of listening to ambiguous stock tips, spend time learning about candlestick patterns. Be cautious of dense upper shadows, wait and see if the lower shadows are too long, and don’t rush into trades without understanding the trend—patience and observation are often the smartest strategies.

Finally, mindset is key. Trading ultimately depends on discipline and patience. Set clear rules for take-profit and stop-loss beforehand and stick to them. Don’t let short-term fluctuations dictate your actions—that’s how you stay in the game for the long haul.

The crypto market isn’t short of legendary stories; what’s missing are those who survive. Spot trading is not a game of lying back and winning effortlessly. Rational action, continuous learning, and strict self-discipline are the true principles for long-term survival in this market.