At the age of 22, I plunged into the world of cryptocurrency without much understanding. I had no strong family background or extensive personal connections, just a laptop and a phone. In the rapidly changing year of 2024, my account balance quietly surpassed eight figures.
Many people may think that achieving such results in the crypto world must involve some secret skills or profound techniques. But I want to honestly tell you: technique is not the key to success or failure; mindset is the decisive factor in this game.
Friends in e-commerce often worry about inventory backlog; those in the real economy inevitably encounter various disputes. Many people envy us cryptocurrency traders, as we don’t have to worry about inventory or deal with complex business disputes. However, only those who have personally experienced the ups and downs of the crypto world understand that this market is actually a psychological battlefield without gunpowder.
In these six years of ups and downs, I have summarized six survival rules in the crypto world. I sincerely hope that these experiences can help you avoid some detours and achieve financial 'freedom' as soon as possible.
[Six Iron Rules of the Cryptocurrency World | Understanding them is better than studying a hundred techniques]:
1️⃣ Rapid rise and slow drop hide the secret of accumulation.
When the market shows a rapid rise and a slow decline, it is often a sign that large funds are secretly accumulating. At this time, don’t be scared by short-term declines; the key is to grasp the market rhythm.
2️⃣ Rapid drop and slow rise may signal an exit.
If there is a rapid drop followed by a feeble rebound, it is likely that the institutions are unloading. At this time, do not be tempted by small profits, or you may easily become the last one holding the bag.
3️⃣ Volume at the top, there may be a possibility of continued rise; no volume at the top, be decisive to exit.
Trading volume is an important indicator for judging market trends. When there is volume at the top, it indicates that the market still has some vitality and may have room for further increases; but if there is no volume at the top, it means that the market is nearing its end, and it is best to exit quickly.
4️⃣ Don't act rashly when there is volume at the bottom; only when there is sustained volume can one safely enter.
Sudden volume at the bottom may be a false signal created by institutions to lure retail investors in. Only when the trading volume continues to expand does it indicate that a true market consensus is forming, and it is relatively safe to enter at this time.
5️⃣ In the cryptocurrency game, emotion is king, and consensus guides direction.
Don’t be blinded by those complex candlestick structures; the essence of the market is a psychological game among people. Trading volume is a mirror of market consensus, through which we can see the true direction of the market more clearly.
6️⃣ The realm of 'nothingness' is the true winning formula.
In cryptocurrency trading, one must achieve the state of 'no attachment, no greed, no fear.' Only by letting go of these distractions can one truly increase their win rate. Those who can wait in cash for the right opportunity are more likely to seize significant market movements.
Lastly, I want to say that on the road of cryptocurrency trading, your only enemy is yourself. The economic data of the beautiful country, the official announcements of projects, the actions of major players, these seemingly important pieces of information are actually just the surface. What truly influences your trading results is the fluctuation within your heart.
In cryptocurrency trading, it's not about who rushes in the fastest when the market starts, but rather who can remain calm and rational amidst price fluctuations.
If you, like me, are struggling in this market full of opportunities and challenges, and have experienced the regret of chasing highs, the pain of cutting losses, the reflection during reviews, and the growth after introspection... then I hope my experiences can inspire you.