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Pitfall Avoidance Guide
Stay away from futures leverage: Leverage greater than 5x is highly susceptible to liquidation in extreme market conditions.
Beware of Dogecoin: 99% of projects with a market cap less than $1 million and a liquidity pool less than $500,000 will be liquidated.
Tax Compliance: Keep all transaction records (e.g., tax reports generated by CoinTracker).
Example:
Before the 2021 SOL surge, on-chain data showed continued increases in institutional wallets.
In 2023, ORDI (BRC-20 token) rose 100x due to the Bitcoin ecosystem narrative, and early adopters profited by monitoring the minting process on unisat.io.
Remember: The cryptocurrency market has distinct cycles, with accumulation in bear markets and gradual cashing out in bull markets. Avoid FOMO (fear of missing out) and chasing high prices!
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