If there’s one thing the crypto market never lacks, it’s stories. Wild drawdowns, meme-fueled rallies, and fortunes lost and found at breathtaking speed.
But behind the Twitter noise and Discord hype, most traders quietly face the same truth: winning is nice, but not losing is better.
As the crypto market tiptoes toward a potential reversal, economist and trader Alex Krüger isn’t telling anyone to chase fireworks.
Instead, he’s handing out a crash course in caution. Forget FOMO and moonshots. For those hoping to survive another round in the world’s wildest market, these four habits could be a lifeline in how not to lose money in crypto.
1. Buy Dips, Not Headlines
It’s easier said than done, but crypto market history keeps proving it right. Data from TradingView shows that the biggest gains follow periods of panic, not euphoria.
Case in point: during Bitcoin’s May 2025 retreat, $220 million in long positions were wiped out in just an hour.
The few with dry powder to buy into cascading sell-offs ended up riding the inevitable rebound, while latecomers buying green candles paid the price.
Studies on dollar-cost averaging in the crypto market reinforce the lesson. Those who patiently buy the fear, not the hype, end up with smoother returns over time.
2. Be Patient, Shortcuts Cost More Than They Save
Markets are noisy, brutal things, but patience is the trader’s best friend. And when buying Bitcoin, it pays to HODL, not trade.
Numbers don’t care about feelings: year-long Bitcoin holders have reliably outperformed quick-flip day traders, even in brutal bear markets.
Analysis suggests that major drawdowns usually shake out in 12-18 months, and those jumping in and out on gut instinct tend to churn away gains. The bottom line?
The people who treat downturns as opportunities, not emergencies, are the ones compounding their capital while everyone else is hitting the panic button.
3. Dodge Memecoins and High-Issuance VC Coins
Sure, everyone’s heard about that one friend who turned a few bucks into a vacation fund with a meme token. But for every survivor, thousands get wiped out, all for the entertainment value of a frog GIF.
In 2025, memecoin volatility hit insane highs: mainstays like DOGE and newcomers like POPCAT saw intraday swings over 50%, and total memecoin rug pulls and hacks topped $2 billion this year alone.
The US SEC clocked over 90% of meme launches on Base as code-insecure or outright scams.
High-issuance VC tokens aren’t a free lunch either: $16 billion in new funding has flowed in since January, but less than 15% of these shiny projects have ever been audited for safety, according to Bitget and Galaxy.
According to Glassnode data, just 5% of altcoins are in profit in today’s crypto market. Most retail entrants, often late to the party, find themselves holding rapidly devalued bags as early backers race for the exits.
4. Don’t FOMO into the Crypto Market
If there was ever an MVP for blowing up portfolios, impulsive, emotions-first buying would hold the title. Kraken’s recent survey says it all: more than 60% of retail traders say FOMO cost them money in the past year. As Krüger warns:
NFTevening found 84% of all new crypto traders are in the red during year one, and FOMO is usually the culprit. It’s a simple trap: chasing headlines, rushing into pumps, abandoning anchor points in your strategy.
The consistent winners in the crypto market are those who accept that missing one rocket is better than burning out on the launchpad.
The Bottom Line
The bravado of the crypto market is legendary, but real survival requires humility and discipline. As Krüger would tell you, making money in crypto comes and goes. Not losing it?
That carries you through every cycle. Buy the dips with care. Be patient. Avoid the circus of memecoins and VC casino tokens. And above all, leave your FOMO at the door.