According to Compounding Quality (@QCompounding), preparing for losses is an essential part of a stock market investor’s journey, as losses are inevitable and must be managed effectively for long-term trading success (source: Twitter, June 5, 2025). This trading principle is equally relevant in the cryptocurrency market, where high volatility makes loss management and risk controls critical for both short-term traders and long-term investors. Understanding and accepting normal market drawdowns helps traders develop robust risk management strategies, leading to more disciplined decision-making and improved portfolio resilience (source: Compounding Quality, Twitter).

According to Patrick McCorry (@stonecoldpat0), all crypto income should be accompanied by immediately selling a portion to cover taxes, minimizing exposure to potential market volatility that could impact tax liabilities (Source: Twitter, June 1, 2025). This approach is critical for active traders, as it secures funds required for tax obligations and reduces the risk of being forced to sell at unfavorable prices later. Professional traders and investors are increasingly adopting this method to protect against sudden drops in crypto asset values that may otherwise result in tax shortfalls.

According to Compounding Quality on Twitter, Charlie Munger emphasized that avoiding common mistakes is more important than trying to outsmart the market. The tweet lists 10 specific investing errors to avoid, such as overtrading, neglecting risk management, and chasing hot trends without due diligence (source: Compounding Quality, May 31, 2025). For cryptocurrency traders, these principles highlight the importance of disciplined trading, risk controls, and thorough research to avoid emotional decisions that often lead to losses. Applying Munger’s advice can help crypto investors minimize costly errors and build long-term profitability, especially in highly volatile markets.

According to Compounding Quality (@QCompounding) on Twitter, avoiding losses is a crucial trading principle that directly impacts the long-term profitability of crypto portfolios. The source emphasizes the need for strict risk management, including setting stop-loss orders and maintaining disciplined position sizing to protect capital during volatile market conditions. For crypto traders, implementing these strategies can reduce drawdowns and improve overall returns, especially as digital assets continue to experience rapid price swings (Source: Compounding Quality Twitter, May 25, 2025).

According to Liquidity Doctor (@doctortraderr) on Twitter, traders should be cautious around the dates 26-27 May 2025, which are labeled as potential 'dump dates', followed by a recovery period from 27 May to 3 June, and a warning of possible 'mega crash days' between 6-8 June 2025. While these claims are based on anecdotal information and not backed by specific data, Liquidity Doctor advises traders to avoid counter-trades and exercise risk management during these periods (source: https://twitter.com/doctortraderr/status/1926342437821182072). Crypto market participants are encouraged to monitor price action and adjust strategies accordingly during these volatile windows.

According to OpenAI, both GPT-4.1 and GPT-4.1 mini have completed standard safety evaluations, with detailed results published in the new Safety Evaluations Hub (source: OpenAI Twitter, May 14, 2025). For crypto traders utilizing AI-powered bots and trading algorithms, these results provide critical insights about model reliability and compliance. Verified performance and safety metrics reduce operational risk for algorithmic trading strategies and improve regulatory trust in AI-driven crypto trading tools. The new transparency from OpenAI is likely to influence adoption rates of AI in the cryptocurrency sector, supporting more robust and secure trading systems (source: OpenAI Safety Evaluations Hub).

According to Compounding Quality on Twitter, Warren Buffett emphasized that 'cash combined with courage in a crisis is priceless' (source: @QCompounding, May 12, 2025). For cryptocurrency traders, this highlights the strategic importance of maintaining cash reserves to capitalize on market downturns and volatility. During periods of severe crypto price corrections, having available liquidity enables traders to buy assets at discounted rates and manage risk more effectively, underscoring risk management practices crucial for long-term trading success.

According to Milk Road (@MilkRoadDaily), Warren Buffett's strict investment principle of only buying what he fully understands has led him to avoid technology stocks such as Microsoft, despite his close relationship with Bill Gates since 1991 (source: Milk Road, May 5, 2025). For crypto traders, this approach highlights the importance of thorough due diligence and understanding project fundamentals before investing, especially in complex assets like cryptocurrencies. Traders can apply this principle to minimize risk and make informed decisions in volatile markets.