I know an old senior who invested 100,000 yuan in the crypto space and now has a market value of 42 million. He said something that enlightened me: 'This market is filled with a crowd of people; just control your emotions, and this market becomes a cash machine!'
There are many ways to trade cryptocurrencies, but not all methods can be learned. We all hope to achieve good returns with the simplest methods, while friends in the crypto space are not unable to find good coins but think too complicated! Here comes the focus of today: a set of trading techniques that are both simple and highly effective!
1. Trading Strategy: First, clarify whether you're a cheetah or a turtle.
'Mindless all-in' is not a strategy; 'averaging down on a drop' is gambling!
Trend Following (suitable for impatient traders): Watch BTC, ETH and other large coins, use moving averages and MACD to judge bull and bear markets, jump in directly when the trend appears (for example, when ETH breaks $3000 and trading volume doubles).
Swing Trading (suitable for those with more time): Focus on altcoins, sell when up 10%-20%, cut losses when down 5%, quick in and out (refer to the meme projects on the SOL chain).
Arbitrage Hedging (suitable for tech enthusiasts): Moving bricks across exchanges, arbitraging contract and spot price differences, making money from market loopholes (for example, if the price difference between Coinbase and Binance suddenly widens).
Bitter Lessons: In 2024, a friend went long on BTC using a trend strategy, but faced a drop due to US interest rate hikes, held on without cutting losses, and ended up blowing up—strategies must match the market phase!
2. Entry Signal: Don't rely on 'feelings', pull the trigger like a sniper.
'Feeling it will rise' is mysticism; 'condition triggered' is science!
Technical Indicators: RSI below 30 (oversold) + sudden increase in volume, go long with closed eyes; MACD death cross + large on-chain transfer to exchanges, run quickly.
News: The Federal Reserve goes dovish, a country passes a Bitcoin bill; when such news comes out, a decision must be made within 5 minutes (refer to the 2024 Salvador second BTC buy-in causing a surge).
On-chain Data: Whale wallet movements (for example, V God transferring out 100,000 ETH), immediately check large holders' movements on tracking sites.
Real-Life Case: My neighbor, Old Wang, doubled his money in three months last year with the strategy 'go long when Coinbase's premium exceeds 2%'—simple signals repeated are better than your random analysis!
3. Exit Signal: Knowing how to buy makes you a student; knowing how to sell makes you a master.
'Double and go' is a fairy tale; 'preserving capital first' is reality!
Hard Stop Loss: If capital loss exceeds 5%, even the king of heaven must cut losses! (Don't believe in 'averaging down', how many thought like that before LUNA went to zero?)
Dynamic Profit Taking: After floating profit of 50%, move the stop loss line to the cost price to enjoy any further gains (for example, if BTC rises from 40,000 to 60,000, then drops back to 55,000, it auto-closes).
Time Stop Loss: If there's no movement after three days, even if there's no loss, withdraw; capital efficiency cannot be wasted (especially applicable to altcoins).
Counterexample Warning: There was a girl who went long on ORDI, made 80% profit but didn't sell, thinking 'it will reach $1000', and as a result, the project team dumped it, now stuck at the peak—greed is a disease, it needs to be treated!
4. Position Management: Don't put all your eggs in one basket, and don't let them all fall to the ground!
'All in to get rich' is a TikTok script; 'diversifying to control risk' is the way to survive!
Total Position Red Line: Use at most 50% of your capital to trade cryptocurrencies, keep the other 50% in stablecoins to earn interest (isn't an annualized 8% attractive?).
Single Coin Limit: No matter how much you believe in a coin, don't exceed 20% of your total position (think about how many were all-in on SOL when FTX collapsed?).
Leverage Multiple: Leverage above 10x is suicide; 3-5x with a stop loss is the way to go (earning ten times with 100x leverage is not enough if it blows up once).
Mathematical Truth: If you bet 2% of your capital each time, even if you are wrong 50 times, you won't go bust; but if you bet 50% each time, being wrong just twice leaves you with 25%—survival is key to output!
5. Risk Control: You're not preventing losses; you're preventing yourself.
Market risk is not terrifying; being unable to control your hands is deadly!
Black Swan Checklist: Think ahead about what to do if 'Elon Musk suddenly turns bearish' or 'Binance gets hacked' (for example, immediately close 50% of positions).
Emotional Switch: After three consecutive losses, take a mandatory day off, uninstall the app for safety.
Environmental Isolation: Don't check the community during a market crash (panic is contagious), turn off price alerts (fiddling can be fatal).
True Story: During the 312 crash, a friend avoided losses with the rule 'auto shut down if drop exceeds 30%', and a week later, rebounded to profit— you don't need to predict the storm, just build a safe haven.
Conclusion: Making money relies on systems, getting rich relies on luck
Brothers, this system seems simple, but 90% of people can't do it—because human nature loves to fantasize about 'getting rich overnight', and is too lazy to execute discipline.
From today, print out your trading records, score them against these 5 points, and three months later, you'll come back to thank me.
Remember: In the crypto space, living long is the real deal!
