Investing in the cryptocurrency market, I will share an executable plan. If you can execute it, making 1 million from 10,000 is achievable. In 2024, trading cryptocurrencies full-time for 11 months, I turned 2000u into over 2 million U, which is equivalent to over 10 million RMB, achieving a 1000-fold profit. In the cryptocurrency market, to truly achieve financial freedom and compound interest, having methods, techniques, and forming your own profit system is crucial! Once mastered, the cryptocurrency market will be like your 'ATM', with making money as easy as breathing! After over 10 years in trading cryptocurrencies, my path to wealth can be summarized as follows: The first 10 million took the longest and was the most painful, as the trading system was constantly reshaped and polished, taking a year and a half. The second 10 million took three months, the third 10 million took only 40 days, and the fourth 10 million took just 5 days. 75% of the funds were earned in half a year.
Five Major Laws of the Cryptocurrency Market
1. Law of Elasticity
Due to the inherent characteristics of the digital currency market, daily fluctuations are very large. During a decline, the market drops like a falling ball; the steeper the drop, the faster the rebound; the deeper the drop, the higher the rebound. Rebounds during a slow and steady decline often lack energy, have little participation value, and limited operational space. However, a sharp drop followed by a retaliatory rebound or an oversold rebound has considerable participation value and operational feasibility due to better profit-making opportunities.
2. Law of Timing
Patience is required when waiting for a buying opportunity, but selling opportunities should not be waited upon. The operation of grabbing a rebound is different from operations in an uptrend. In an uptrend, one generally sells only when the price has stopped rising and begins to pull back; however, in a rebound market, one should not wait until the rise is about to end before selling. Emphasis should be placed on early selling in rebound operations, generally decisively taking profits after some gains; if, for some reason, one has not yet made a profit and the market rebound is about to reach its theoretical target, one should also sell decisively. The duration and upward space of a rebound market are both limited; waiting until a peak is confirmed to sell is usually too late.
3. Law of Decision Making
Investment decisions should primarily be based on strategy, with predictions as a supplement. The trend development of a rebound is often not obvious, and the variables in market development are considerable, making predictions difficult. Therefore, participation in rebound markets should focus on strategy and use predictions as a reference. When investment strategy conflicts with investment prediction, decisions should be made based on strategy, not on the results of predictions.
4. Law of Transformation
A rebound may not necessarily evolve into a reversal, but a reversal must evolve from a rebound. However, in a downtrend, there can only be one rebound that transforms into a reversal; all other rebounds will trigger a larger downtrend. Traders often get trapped in the middle of a rise while blindly betting on a reversal opportunity, so one must not mistakenly treat a rebound as a reversal.
5. Law of Pullback
In contrast to the law of elasticity, during an uptrend, the market rises like a parabola; any rise cannot occur continuously without a pullback. Once a stage has reached a peak, it will inevitably face a pullback. Generally, the faster and higher the rise, the quicker and deeper the pullback; if the rise is slow and oscillatory, the pullback will usually be very small. Therefore, the more explosive the breakout rise, the higher the success rate of betting on a pullback.
1. First calm down, then summarize • Don’t trade impulsively: If you lose money, don’t rush into retaliatory trading, thinking you can make it back all at once, as this often leads to greater losses. First, calm down and avoid impulsive actions. • Find the cause: See if you were chasing highs and cutting losses, using too much leverage, or simply following the crowd blindly? Identify the problem and don’t make the same mistake next time.
2. Adjust strategy, reduce risk • Steady investment: After losses, don’t engage in high-risk activities, such as high leverage or contract trading; try spot trading or dollar-cost averaging for a stable approach. • Diversify investments: Don’t put all your money into one coin; spread investments across mainstream coins like Bitcoin and Ethereum, as well as potential coins to reduce risk. • Set profit and loss limits: Before each trade, you should have an idea of how much profit or loss will lead you to exit, without being greedy or fearing a missed opportunity.
3. Acquire knowledge, improve skills • Deeply understand the project: The cryptocurrency market changes rapidly; continuous learning and understanding of the project's fundamentals and technology are essential for better opportunity grasping. • Stay updated on market dynamics: Policies, market sentiment, and technological developments must be monitored to avoid being left behind.
4. Steady and methodical, avoid impatience for quick gains • Regularly invest in mainstream coins: If funds allow, regularly invest a fixed amount in mainstream coins like Bitcoin and Ethereum to smooth out market fluctuations over time. • Participate in DeFi projects: Some low-risk DeFi projects, like staking and liquidity mining, can yield some profits, but one must pay attention to smart contract and platform security. • Avoid high leverage: High leverage carries significant risks; while profits may be good, losses can lead to liquidation, especially after a loss, one must be more cautious.
5. Adjust mindset, accept reality • Accept losses: In investing, there are gains and losses; what’s important is to learn from them. • Set reasonable goals: Don’t expect to break even in a short time; set a reasonable timeline and goals for yourself, and take it slow. • Don’t borrow to trade cryptocurrencies: Even if you face losses, don't think about recovering through borrowing or diverting living funds, as this could lead to greater troubles.
Opportunities are reserved for those who are prepared!
Seizing opportunities is the key to success!
What are you still hesitating about!
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