For newbies just entering the crypto assets field, the experiences summarized from market fluctuations may help you avoid some common traps. This insight is particularly important given the current market's uncertain direction and increased volatility.

First, it is important to recognize that the hot projects in the crypto market often come and go like a fleeting cloud. Taking FIL and LUNA as examples, many altcoins exist primarily to create short-term gains rather than for long-term holding. Attempting to hold onto a project from the beginning until the end is likely to end in vain. This is because no project can escape the influence of market cycles; when the hype fades, it often leaves behind a mess. Therefore, when profits reach expectations, it is essential to cash out profits in batches to avoid ending up with nothing after all the hard work.
Secondly, it is crucial to learn how to identify 'bull traps' and 'bear traps' in the market. When the coin price breaks out again after consolidating at a high level, it may be a good time to sell. Especially in recent market conditions where false breakouts have occurred frequently, this is often a strategy used by institutional funds to induce retail investors to chase the highs; at this time, reducing positions or exiting should not be hesitated. Conversely, when the coin price consolidates at a low level and then makes a new low, only to be quickly pulled back, it is very likely to be the 'last washout.' At this time, one should overcome the fear mentality and maintain a moderate greed.
In addition, paying attention to coins that perform against the trend can provide valuable market information. When the overall market declines, if a certain coin remains flat against the trend, it may indicate that it is accumulating momentum for an upward move; if it manages to rise slightly against the trend, it may even foreshadow a significant increase coming soon. This usually reflects the intention of strong capital to support the price. Conversely, when the market is generally rising, if a certain coin remains flat or declines slightly against the trend, it may expose a lack of capital interest, which is a potential weak signal.
Finally, effective position management is the key to successful investing. Although this may contradict intuition, 'let profits run and cut losses' is an important principle. The right time to increase positions should be after the coin price breaks through previous highs and confirms a strong trend; rather than continuously adding positions during a downturn, ultimately falling into a serious entrapment situation.
Remembering these experiences will help you better seize opportunities and avoid risks in the complex and fluctuating crypto assets market.