Let me share with you the blood and tears of my ten years in the cryptocurrency world.
Back then, I was just like you, diving into the crypto space with dreams of getting rich, only to be repeatedly harvested by the market. At my worst, I lost a million and almost had to pack up and leave. But it was these lessons that led me to realize 8 rules for survival. With these rules, I not only recovered my losses but also achieved financial freedom.
First rule: Manage your money well. If you have less than 100,000, focus on one coin; don’t follow others into asset allocation. With 200,000 to 300,000, you can handle two coins; 500,000 can stretch to three or four at most. Remember, in a bull market, concentrate your firepower; in a bear market, keep light positions and watch. If you’re losing, be quicker to run than anyone else!
Second rule: The trend is your best friend. Don’t always think about bottom fishing and top escaping; downtrends and rebounds are traps set by market makers, and upward corrections might just be pit traps. You can learn tech analysis from the news, but don’t guess the intentions of the main players; following the trend is the way to go.
Third rule: Act when the market is lively. The biggest fear in the crypto world is being stubborn; when the market heats up, pounce like a hungry wolf, and when the wind changes, run faster than a rabbit.
Fourth rule: Stop-loss and take-profit are your lifelines. Accept your losses, and know when to take profits. Set your stop-loss points, and remember to gradually raise your selling price when you’re in profit; don’t let the ducks you’ve got fly away.
Fifth rule: Buy and sell quickly, accurately, and decisively. Seize opportunities without hesitation; if it’s time to buy, then buy; when you hit your target, don’t be greedy; if it’s time to sell, then sell. The biggest taboo in the crypto world is indecisiveness.
Sixth rule: Before increasing your position, give yourself two slaps. Ask yourself: If I were holding no positions now, would I dare to enter at this price? If yes, then add; if no, then hold back.
Seventh rule: Long-term is gold, short-term is silver. Don’t keep staring at the five-minute candlestick charts and fidgeting; big money is made by following the major trend. Too much short-term trading can lead to a mindset explosion.
Eighth rule: Bottom fishing is a skill. Don’t think that just because it has dropped a lot, you can bottom fish; the crypto world specializes in dealing with all kinds of disbelief. Remember, in this market, only a few people can make money.
Finally, I’ll leave you with a saying: The market tests not your skills, but your mindset. Follow these eight rules, and while I can’t promise you will get rich, I can guarantee you will avoid several years of detours. Remember, in the crypto world, living long is the real skill!
