Since 2019, I have experienced the ups and downs, witnessed the explosive growth of the DeFi ecosystem, the crazy era of NFTs, and several nerve-wracking bear markets. I have ridden the roller coaster of accounts and tasted the thrill of doubling my investments. The biggest takeaway over these years is not some mysterious science, but five ironclad rules summarized from real money. Master three of them, and you can basically leave most retail investors behind.

**Identify Wash Trading and the Sickle — This is the First Lesson in Survival**

When the price suddenly surges and then slowly declines — this is often the tactic of market makers doing wash trading. Remember the SOL rally? From $20 straight to $60, then oscillating between $60-50, many people sold in fear. Who knew it would later surge to $200? The real purpose of wash trading is to shake off those weak-willed followers. As long as the weekly moving averages are holding up, holding often makes more money than frequent trading.

But there is a kind of rapid rise that is completely different. A coin jumps 40% within 24 hours, then gets cut in half within a few hours — this is classic bait-and-switch. Last year, Meme coins did this — rising tenfold before dawn, then being completely sold off at sunrise. Friends chasing the high ended up trapped at the top. This kind of market is usually a coordinated effort by project teams and big players to wipe out retail investors. Don’t think about bottom fishing — it’s really not worth it.

**Signals of Distribution Are More Obvious Than You Think**

After a flash crash, a slow rebound may look like a bottom opportunity, but this is precisely when funds are quietly leaving. The LUNA episode is a typical example — continuous limit-downs, with each rebound weaker than the last. Many thought it was a bottom, but in the end, they lost everything. The true bottom should be a period of consolidation and accumulation, not buying during a decline.

Another critical detail: high-level sideways movement with suddenly shrinking volume. What does this mean? Funds are already fleeing. Look at the 2021 Bitcoin sideways trading near $60,000 — but the volume was thinning out. Some people even claimed “the bottom is in,” but everyone knew what happened next.

**Rhythm Determines Life or Death**

Rapid upward movement combined with slow decline = wash trading. Sharp rise followed by instant cut in half = sickle. This logic applies across all cycles. The key is to have patience and distinguish the signals, rather than being scared by short-term fluctuations. On the technical side, don’t panic if the trend isn’t broken; holding is more challenging for your mindset than trading, but it also yields better profits.

**In summary: Learn to read the rhythm of the market, and you’ve won half the battle.**