In the crypto market, the most common mistake beginners make is rushing to follow the trend after seeing others make money. The result is often buying high and getting trapped, cutting losses and exiting, and after a round of market cycles, the account shrinks by half. Instead of blaming bad luck, ask yourself: Do you have an investment system?

Without a system, there is no execution. The crypto market is highly volatile, and a bad mindset can easily lead to wrong decisions. To truly break free from being harvested, you must establish your own investment framework. This framework roughly divides into four directions.

**First Direction: Learn to Select Coins**

Choosing the right coin is half the victory. The characteristics of trash projects are obvious, but beginners often can't see them. How to judge if a project is worth investing in? Consider three dimensions.

Technical innovation is fundamental. Review the white paper, see if the team has real breakthroughs in technology, or if they are just copying others' code and changing parameters. Those purely imitative projects lack competitiveness. Application scenarios determine the ceiling. What real problems does the project solve? Why do users need it? If all they can say is hype about concepts, be cautious. On-chain data reflects the truth. Is the user base growing? Is the trading volume healthy? Data on the public chain explorer cannot be faked, and it’s more convincing than any publicity.

**Second Direction: Manage Your Money Well**

Many people are very casual about fund management. This is actually the main reason for losses. Here are some suggestions:

Investing with idle funds is a basic principle. Set aside funds that do not affect daily life; it’s usually recommended not to exceed 10%-20% of disposable income. Even if you lose it, your quality of life won’t be affected, and your mindset can stay stable. Diversify with a strategy. It’s not about splitting money evenly, but classifying risk: allocate to core assets (stable, low risk), potential assets (medium risk), and risky assets (high risk). Core assets can have a larger proportion, while potential and risky assets should be kept in smaller positions. This way, the overall risk is controlled, and you won’t miss opportunities.

**Third Direction: Strict Stop-Loss and Take-Profit Mechanisms**

This is what many retail investors lack most. Seeing account floating losses makes them soft; seeing floating gains makes them greedy, and in the end, they end up working for the exchange.

Set stop-loss levels in advance. Different asset types have different stop-loss points: core assets should be sold if they drop 20%-30%; potential assets at 30%-40%; risky assets at 40%-50%. Act decisively when these levels are hit—don’t hold onto false hope. Take profit is equally important. When core assets increase by 50%-100%, consider locking in gains; for potential assets with larger gains, reduce positions gradually. Don’t wait for a meteoric rise, as that often leads to a sharp fall and all previous gains are lost. Regularly review your operations. Each month, analyze which decisions were right, which were wrong, and why. Record your experiences so you can avoid repeating mistakes.

**Fourth Direction: Cultivate the Right Mindset**

Ultimately, whether you can make money long-term depends on your mindset. Skills can be learned, discipline can be cultivated, but mindset takes time to refine.

Rationality is key. Conduct thorough research before buying; don’t impulsively trade based on rumors. Chasing highs and selling lows is the trap that most retail investors fall into, often losing profits that way. Patience is another essential lesson in investing. Although the crypto market offers many opportunities, making big money is always a marathon. Stories of overnight riches are just stories; don’t take them as your goal. Greed and fear are the biggest emotional traps in the market. Greed can cause you to miss take-profit opportunities; fear can make you sell at the bottom. Learn to find a balance between these two emotions—that’s already half the battle won.

Building an investment system is not something that happens overnight. It requires continuous learning, adjustment, and optimization through practical experience. Everyone’s risk tolerance is different, and the system should be tailored accordingly. The core is to have a framework, discipline, and patience. Persisting with these can completely help you avoid being harvested.