According to Lookonchain, traders should prioritize risk management by consistently taking profits, avoiding FOMO during market rallies, and steering clear of high leverage positions (source: Lookonchain on Twitter, June 23, 2025). These strategies are essential for minimizing losses and protecting gains in volatile crypto markets. Following these trading principles can help investors safeguard capital, especially during periods of rapid price movement in assets such as BTC and ETH.

According to Compounding Quality, Howard Marks' book The Most Important Thing offers practical lessons on risk management, market cycles, and disciplined investing that are directly applicable to cryptocurrency trading strategies. The analysis emphasizes the importance of understanding risk, controlling emotions, and avoiding herd mentality, which are crucial for navigating high-volatility crypto assets like BTC and ETH (Source: Compounding Quality on Twitter, June 21, 2025). These principles can help traders refine entry and exit points and manage portfolio risks in the dynamic crypto market.

According to Michaël van de Poppe (@CryptoMichNL), traders should avoid using leverage during FOMC meetings, as volatility often creates misleading initial price movements. He observes that a fake move commonly occurs directly after the Federal Reserve announcement, while the true directional move on Bitcoin (BTC) and major altcoins usually happens following Chairman Powell's speech. This pattern is critical for crypto traders to monitor, as timing trades around the FOMC can significantly impact profitability and risk management (Source: Twitter/@CryptoMichNL, June 18, 2025).

According to Ai 姨 (@ai_9684xtpa), AguilaTrades faced losses as BTC experienced a short-term drop, turning his previously profitable 20x long position into a $1.58 million unrealized loss. Within the past 15 minutes, he reduced his BTC exposure by 632.64 BTC, cutting his position to $350 million with an average entry price of $106,014.2 and a liquidation price at $100,650. AguilaTrades also transferred $5 million USDC from Bybit to Hyperliquid as additional margin. This aggressive margin management and position adjustment highlights the volatility and risk management strategies among major BTC traders, potentially impacting market liquidity and short-term price action. (Source: @ai_9684xtpa on Twitter, June 17, 2025)

According to Brad Freeman (@StockMarketNerd), understanding and respecting the limits of one’s knowledge is essential for successful stock-picking, referencing Warren Buffett’s 'circle of competence' and 'no called strike game' principles (source: Twitter, June 13, 2025). Freeman highlights that his worst investment decisions resulted from acting outside his expertise. For traders, this emphasizes the importance of in-depth sector analysis and avoiding unfamiliar assets, a principle equally crucial in the volatile cryptocurrency market, where lack of understanding can amplify risks and losses.

According to Investopedia, understanding the percentage gains required to recover from trading losses is crucial for risk management in crypto markets. For example, a 20% portfolio loss requires a 25% gain to break even, while a 50% loss demands a 100% gain for full recovery (source: Investopedia, 2024). This asymmetric recovery underscores the importance of stop-loss strategies and disciplined position sizing for crypto traders, especially during high volatility periods. Monitoring drawdowns and calculating necessary recovery gains helps traders optimize risk-reward ratios and prevent irreversible capital erosion.

According to @EmberCN, James Wynn's trading activity highlights a key risk for crypto traders: rebate income from exchanges is not covering rapid trading losses. Wynn earned $530.9 in rebate income but, after several trades, his position dropped to $225.4, losing $305 in just 18 hours. Even with $137 in new rebates, his latest short-to-long position shift at 3 AM resulted in a further $174 loss. This real-time case underscores the importance of risk management over chasing rebate income in volatile crypto markets (source: @EmberCN, June 9, 2025).

According to @AltcoinGordon, effective crypto trading requires a disciplined approach with a clear plan, regular profit-taking, and maintaining a stable portfolio to mitigate rapid losses. Traders are advised to lock in gains during price surges and avoid emotional decisions, as market volatility can quickly erode profits (source: Twitter/@AltcoinGordon, June 7, 2025). This practical risk management advice is crucial for both short-term and long-term crypto market participants aiming to maximize returns while minimizing unexpected setbacks.

According to Ai 姨, while practical trading tutorials attract significant traffic, most users tend to ignore risk disclosures, leading to increased vulnerability to large single-order losses and sudden market dumps. Traders are advised to limit large single trades to mitigate the risk of being caught in sharp price drops, which can result in substantial losses and erode prior gains (source: Ai 姨 on Twitter, June 7, 2025). This highlights the importance of disciplined risk management strategies in volatile crypto markets.

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.