At the age of 22, with a heart full of naivety and curiosity, I dove headfirst into the unknown world of cryptocurrencies. I had neither a wealthy family background to pave the way for me nor extensive connections to support me; all I had was a laptop to monitor the market and a phone for communication. Time flies, and in the ever-changing and unpredictable year of 2024, my account balance surprisingly broke through eight digits.
Many people might subconsciously think that my achievements stem from some unknown secret techniques or profound trading skills. But today, I want to tell you without reservation: In this brutal and tempting cryptocurrency market, technology has never been the core factor determining success or failure; mindset is the real key to victory in this fierce game.
Friends in e-commerce often worry about their mountains of inventory, fearing that unsold products will cause cash flow difficulties; those in industry often find themselves in various complex business disputes, overwhelmed with work. In contrast, many people envy us in cryptocurrency trading, as we don't have to worry about inventory management or deal with troublesome business disputes. However, only those who have personally experienced the market's ups and downs know that this seemingly easy market is actually a cruel psychological battlefield without gunfire.
In these six years of treacherous struggles, I have experienced countless instances of chasing highs and getting trapped, cutting losses to exit, and growing through deep reflection. Now, I have summarized six survival rules for the cryptocurrency market. I sincerely hope that these rules, earned through blood, tears, and experience, can help you avoid some detours in this market full of opportunities and traps, and achieve financial freedom sooner.
[6 Major Laws of the Cryptocurrency Market | Understanding them is far better than苦苦学习千般技巧]:
1️⃣ The rise is as swift as the wind, while the fall is as slow as a turtle; this is the secret of accumulating positions.
When the market shows a rapid rise and a slow decline, it often hides the secrets of large funds secretly accumulating positions. At this moment, we must not be intimidated by a short-term drop; the key is to keenly grasp the market rhythm and judge whether this is a short-term adjustment or a trend reversal.
2️⃣ The decline is as fierce as a tiger, while the rise is as weak as silk; be cautious of selling signals.
If the market experiences a rapid decline, followed by a weak rebound, it is very likely that the big players are secretly offloading their positions. At this moment, we must not be tempted by a small rebound profit, as this can easily lead to becoming a bag holder, trapped at high levels.
3️⃣ Volume at the top seems promising; leave quickly if there’s no volume at the top.
Trading volume is one of the key indicators for judging market trends. In the top area of the market, if there is an increase in volume, it indicates that the market still has some vitality and may have room for further growth; however, if there is no volume at the top, it means the upward momentum has exhausted, and the market is nearing its end. At this point, it is crucial to exit decisively to avoid profit loss or even losses.
4️⃣ Do not act impulsively when volume appears at the bottom; take action only when there is sustained volume.
When the market is in the bottom area and suddenly experiences an increase in volume, it could be a deliberate illusion created by the big players to lure retail investors in. Only when the trading volume continues to expand and the market shows a clear upward trend does it indicate that true market consensus is forming; it is relatively safe to intervene at this point.
5️⃣ The cryptocurrency market is like a battlefield; emotions determine wins and losses, and consensus points the way.
In this unpredictable market of cryptocurrencies, we must not be misled by those complex K-line structures. The essence of the market is a psychological game among people, and trading volume is a mirror reflecting market consensus. By observing changes in trading volume, we can gain clearer insights into the true direction of the market, allowing us to make more accurate decisions.
6️⃣ The highest state of 'nothingness' is the key to victory.
The highest realm of cryptocurrency trading is to achieve a state of 'no attachment, no greed, no fear.' Only by letting go of these distractions can we maintain a clear mind during trading and truly improve our winning rate. Those who can endure solitude and wait for the right opportunity are more likely to seize great opportunities when the market arrives and achieve rapid wealth growth.
Finally, I want to tell you solemnly that on the road of cryptocurrency trading, your only enemy is yourself. Economic data from the United States, official announcements from projects, and the actions of major players may seem important, but they are merely the surface of the market. What truly influences your trading results is the turbulence within your heart.
In cryptocurrency trading, it has never been about who rushes the fastest when the market starts but about who can remain calm and rational amidst price fluctuations, not being swayed by greed or fear.
If you, like me, are striving in this market full of opportunities and challenges, and have experienced the regret of chasing highs, the pain of cutting losses, the deep reflection during reviews, and the continuous growth after introspection... then I hope my experiences can serve as a guiding light for you, helping you walk a more stable path in the cryptocurrency world.