A friend asked me, how can you survive longer and still make money in the crypto world? My answer is straightforward—learn to read trading volume and establish trading discipline.

Seven years ago, I was sharing a rental in Shenzhen, and my monthly salary first went to cover the rent. Seeing friends around me talking about getting rich overnight, I couldn’t sit still anymore. I invested the 190,000 yuan I had saved up. Over those years, I’ve stepped into all kinds of pits and paid a lot of tuition. Looking back now, the account balance gave me real confidence—not because I got rich overnight, but because I found a steady way to make money in this market.

**Washouts and Market Tops, Don’t Confuse Them**

When I first entered the scene, my mentality was very fragile. Once, a counterfeit coin I bought suddenly surged 20%, then started to fall. I panicked and sold everything immediately. What happened next? It rose another 50%. That moment made me realize that a sharp decline after a rapid rise isn’t necessarily the end of the trend; it could very well be a shakeout by the market makers.

How to distinguish? Look at trading volume. It’s the most honest indicator. What’s the most dangerous signal? A sudden crash after a volume surge. I remember watching ETC—its price surged 30% in one day and then suddenly collapsed. I didn’t hesitate and sold everything at that moment. Later, it dropped another 40%. During the shakeout phase, trading volume gradually shrinks, but key support levels are not broken; market tops are different—they often involve high volume downward moves, with support levels being penetrated like paper.

**Silence at High Levels Is More Dangerous Than Excitement**

There’s another easily overlooked signal in the crypto world—sudden drop in trading volume at high levels. This "silence" is more frightening than any sharp decline.