Having spent 7–8 years in the crypto space, I’ve built an eight-figure portfolio and learned some invaluable lessons along the way. Here’s a summary of my hard-earned experience:
1. Divide Your Capital Wisely – Split your funds into five parts, investing only one-fifth at a time. Maintain a 10% stop loss; this way, a single mistake costs just 2% of your total capital, and even five consecutive mistakes would only result in a 10% loss. On the flip side, aim for a take-profit target above 10%. This strategy keeps you from getting trapped in bad trades.
2. Follow the Trend – To increase your success rate, trade with the market momentum. In a downtrend, every bounce is a trap for buyers, while in an uptrend, each dip is a golden buying opportunity. Ask yourself: Is it easier to make money by catching falling knives or by buying established pullbacks?
3. Avoid Chasing Pumped Coins – Whether it’s a major cryptocurrency or an altcoin, most assets struggle to maintain strong, repeated uptrends after an explosive short-term surge. Once a coin stagnates at high levels, it usually drops—yet many traders still take unnecessary risks hoping for another rally.
4. Use MACD for Entries & Exits – A golden cross of the DIF and DEA lines below the zero line, moving upward, signals a strong entry point. Conversely, when MACD forms a death cross above the zero line and starts declining, it’s often a sign to reduce your position.
5. Never Average Down in a Losing Trade – The idea of "averaging down" has led many retail investors to ruin. Increasing your position while in a loss only deepens your troubles. Instead, focus on scaling up when you’re already in profit—this way, you ride momentum rather than fight against it.
6. Volume is Key – Trading volume is the heartbeat of the market. Watch for breakouts with increasing volume when prices consolidate at low levels, and exit decisively if a surge in volume at high levels results in stagnation—this often si
