The Survival Rules in the Cryptocurrency World: The Profit Logic of Not Being Greedy and Impulsive
To achieve wealth accumulation in the cryptocurrency world, the core lies in establishing a mature trading system and disciplined operations. Based on 8 years of practical experience, my path can be summarized as: from system refinement to exponential growth—my first ten million took 1.5 years (building the trading system), followed by achieving ten million level growth in 3 months, 40 days, and 5 days respectively, with 75% of the profits concentrated in the last six months.
1. Avoid the "Deadly Traps" of Contracts
Contracts are essentially zero-sum games, and none of the players I know are long-term profitable. Even if they profit in the short term, it usually ends up being due to leverage risks going to zero. The essence of trading communities is 'scalping transformation'; they make money from retail investors' fees and emotional taxes, not from market dividends.
Advice: Relying on contracts to recover losses = gambler’s fantasy. 99% of contract profit cases in the market are survivor bias; quitting leverage = quitting the wealth destroyer.
2. The "Life and Death Line" for Spot Traders
1. Unwinding Logic:
• Lightly stuck (loss < 50%): Can be unwound through position management (such as dollar-cost averaging to lower the average price) + trend judgment (take profit at the peak of the bull market);
• Heavily stuck at high positions: Must wait for the next cycle (bull-bear transition averages 2-4 years), the key is in "waiting" and "shorting."
2. Core of Profit: Sell when the crowd is vocal, and go to cash before the divergence.
95% of retail investors lose money due to:
• Making small profits during the main bull market wave, increasing positions at the peak during euphoric times;
• Being governed by “fear of missing out” after taking profits, entering too early to pick up the main funds.
Practical Advice: Set a hard stop-loss line (such as 80%-150% profit), and after reaching the target, go completely to cash, blocking out all noise about "XX coin will rise 10 times."
Cryptocurrency is highly volatile; this article is merely a personal experience sharing and does not constitute investment advice. The market is in a fluctuation state 70% of the time, 20% down, and only 10% in an upward trend—controlling desires and respecting cycles is the fundamental way to navigate through bull and bear markets.
If you want to seize this bull market, learning on the go will definitely be too late; it’s best to have someone guide you quickly into the basics.
