A monthly salary of 3,000 yuan, an annual income of 36,000 yuan, and a total lifetime income of 1.44 million yuan is expected;
With a monthly salary of 4,000 yuan and an annual income of 48,000 yuan, the accumulated wealth in one's lifetime is expected to reach 1.92 million yuan;
With a monthly salary of 5,000 yuan and an annual income of 60,000 yuan, the total income expected in a lifetime is 2.4 million yuan;
With a monthly salary of 6,000 yuan and an annual income of 72,000 yuan, the accumulated wealth in one's lifetime may reach 2.88 million yuan;
With a monthly salary of 7,000 yuan and an annual income of 84,000 yuan, the estimated lifetime income is 3.36 million yuan;
With a monthly salary of 8,000 yuan and an annual income of 96,000 yuan, the total income in a lifetime is estimated to be 3.84 million yuan;
With a monthly salary of 9,000 yuan and an annual income of 108,000 yuan, the accumulated wealth in one's lifetime is expected to exceed 4.32 million yuan;
A monthly salary of 10,000 yuan, an annual income of 120,000 yuan, and a total lifetime income of 4.8 million yuan is expected;
With a monthly salary of 20,000 yuan and an annual income of 240,000 yuan, the accumulated wealth in one's lifetime may be as high as 9.6 million yuan;
A monthly salary of 30,000 yuan, an annual income of 360,000 yuan, and an estimated total lifetime income of 14.4 million yuan;
With a monthly salary of 40,000 yuan and an annual income of 480,000 yuan, the accumulated wealth in one's lifetime is expected to reach 19.2 million yuan;
With a monthly salary of 50,000 yuan and an annual income of 600,000 yuan, the total income expected for a lifetime may reach 24 million yuan.
However, there are very few people who earn over 10,000 yuan a month, and even fewer who earn over 20,000 yuan a month. Most people's monthly salary still hovers below 10,000 yuan. It seems that the average person's lifetime income is barely enough to buy a house.
So, if you are in the cryptocurrency circle, how much do you want to earn before you stop?
If you are over 50 years old, then my suggestion is that holding 10 bitcoins is enough. After all, the value of Bitcoin is likely to soar to millions in the future. Conservative estimates show that one bitcoin is worth a million, and 10 are worth tens of millions. Holding 10 bitcoins is equivalent to having the lifetime income of an ordinary working elite!
If you are in your forties, 5 bitcoins are enough;
If you are in your thirties, 2 Bitcoins are enough;
If you are young, 0.5 bitcoins is enough;
If you were a kid, 0.36 bitcoins would be enough.
If you are in your 30s or 40s and hold 20 bitcoins, you have the key to a free life; if you hold 100 bitcoins, the world is yours to explore. Come on, my friends in the cryptocurrency world!
Although there are many ways to make money, the lessons learned are often similar.
My experience of 13 times increase in the cryptocurrency market in one year and my investment strategy:
The first principle is product selection and timing: research good targets and figure out how to buy them:
There are several main indicators for buying a good target:
1. Fundamentals: If the fundamentals are good, you can hold them for a long time. In this way, at least you will be stuck for 3-4 years at worst, but you can still make several times more in the next bull market.
2. Price: the purchase price is not high and is relatively low
3. Timing. If there is a trend later, the return on investment will be faster, for example, if there is strong positive news later, such as buying at the end of a bear market, it will be better than buying at the beginning of a bear market. After all, it will take 1-3 years for your money to be trapped in the early bear market. If you buy at the end of a bear market, the trend will pick up quickly, and your money will soon increase several times.
The second principle: Study the top indicators clearly and make large positions to buy low and sell high based on the entire bull market cycle.
The core bull market top indicators that I personally have been using in the internal community:
1. BTC market capitalization share, if it is bullish, it is likely to fall below the previous low of 36. If it falls below 40, you should pay special attention. For example, 9.7 is a big drop after the market capitalization share hovered around 40.
2. The eth/btc ratio, if it rises above 0.1, the target is around 0.12, or even 0.14-0.2. If it rises above 0.1, we should pay attention to the risk of a large callback.
The third principle is the currency standard. The currency standard is a very important core idea of mine. I use the currency standard to open a grid and earn coins.
I am a Bitcoin-based investor. Although many people buy various altcoins, in the end 96% of them cannot outperform those who hoard Bitcoin. Therefore, my goal is to earn Bitcoin by using the ups and downs of the market, especially by choosing the right products to earn Bitcoin. I use the quantitative grid method to open Bitcoin-based grid orders. This way, my risk will be lower. If other currencies rise relative to Bitcoin, I will sell them in batches and buy Bitcoin. If the market falls, I will sell Bitcoin and buy these currencies (because Bitcoin will fall less than other currencies).
The fourth principle: Combination of long-term and short-term trading systems: For example, my long-term position is to hoard coins, and I will never do short-term high-selling and low-buying.
For my short-term positions, I use a quantitative grid to automatically help me buy low and sell high. Like the order below, the profit from the grid's buy high and sell low is almost the same as the profit from the increase in my holdings.
The fifth principle: be patient, ambush at low levels, hold your coins patiently, and don’t chase high prices.
You must be patient. Valuable coins will definitely rise, but the sectors are rotating, and it is impossible to get all the skyrocketing coins.
If the coins you have are not moving and you want to sell them to chase the rise of other coins, you should study the coins you bought carefully, including its team, business, track, official website, community (twitter, instegram), etc.
Don’t wait too long and sell out when the price goes up a little. You may end up waiting so long but not getting a big increase.
As the saying goes, it is harder to keep coins than to be a widow. The best way to hold coins is to open a grid, especially a coin-based grid. This can outperform hoarding coins and the risk is relatively low.
The sixth principle: You must think carefully about your trading rhythm and trading cycle.
Many people watch the market every day, but they don’t know what cycle they should watch. If they watch the minute line, the bull and bear markets will switch every minute, which will make them unable to sleep well and eat well.
Generally speaking, we should look at the larger cycle first and then the smaller cycle.
If you are a long-term holder, look at the weekly chart, then the daily chart, and the four-hour chart, and occasionally the 1-hour and 30-minute charts, mainly as a buying opportunity. Basically, don't look at the 1-minute and 5-minute charts. I made a big mistake in the past, often looking at the 1-minute and 5-minute charts, and then worrying about gains and losses. In the short term, there is a high probability that the coins will become less and less. Many people can't even make legal currency, let alone increase the coins in their hands.
Look at the time period of the K-line to determine the maximum holding time: 1 minute, tens of minutes; 5 minutes, several hours; 15 minutes, one or two days; 1 hour, several days; 4 hours, several weeks.
The basic principles of Dow Theory combined with the actual situation of the cryptocurrency world can be summarized in the following six points:
First, the average price includes and absorbs all factors. Fundamentals, policies, news, and funds can all affect the supply and demand relationship, and all of these will be directly reflected on the market, and the market will eventually digest and absorb them through price changes.
Second, the market has three trends. Dow divides trends into three categories: primary trends, necessary trends, and short-term trends.
The main trend is like the tides of the sea, which is a long-term trend, similar to the four seasons of the cryptocurrency world, and the bull and bear cycles have no beginning and no end.
The secondary trend is the wave in the tide, representing the retracement of the primary trend, generally retracement to the three important Fibonacci positions of 38%, 50%, and 62%. The short-term trend is the ripple, which refers to the slight fluctuations in it. The slight fluctuations are highly uncertain and change rapidly.
Third, the general trend can be divided into three stages. The first stage is the accumulation stage, which is similar to the birth of yang after the cathode. It means that the bear market has reached its end. Although everyone is bearish, the market has fallen to the point where it can fall. At this time, the main force begins to absorb the goods in batches.
The second stage is the bullish upward stage. Favorable news begins to appear, most retail investors who understand some technology begin to gradually enter the market, and prices begin to rise gradually.
The third stage is the climax sprint. At this time, major media begin to report good news and make bold predictions for the continued rise in prices. Retail investors actively buy and no one wants to sell, for fear of missing out on this once-in-a-lifetime opportunity to make money. But in fact, the main force of bottom buying has already begun to ship.
Fourth, the various average prices must verify each other. For example, if the common increase of Bitcoin and mainstream coins exceeds the peak of the previous mid-trend, it can be called a large-scale bull market! Similarly, if the common decline of Bitcoin and mainstream coins falls below the neckline position of the high-level oscillation stage in the bull market trend,
Fifth, trading volume must verify the trend. Dow believed that volume should be placed second in technical analysis. When prices are developing along the general trend, trading volume should also increase accordingly.
Sixth, only after a definite reversal signal occurs can we judge that an established trend has ended. A major trend has inertia and generally moves in the main direction for a while, so we must wait until the trend is confirmed to reverse, such as the head and shoulders pattern confirms that it has broken through the neckline before the trend is considered a reversal.
Dow Theory is a macro-technical analysis system. Its purpose in actual trading is to capture the largest part of important market movements, that is, the middle part of the tastiest fish belly.
Its advantage is that it is relatively successful in determining the general trend of bull and bear markets. However, its disadvantages are also quite obvious. The signals are usually delayed, and generally speaking, 20%-25% of the profit margin will be missed.
The secret method of the cryptocurrency circle, if you master one of them, you can start a life of sudden wealth. One trick can really make you successful.
1. The longer it goes sideways, the higher it will rise; the longer it goes sideways, the higher it will rise.
Horizontal fluctuations are a sign of bottom-up accumulation, and the more chips absorbed, the greater the ambition.
2. If the stock price suddenly drops while going sideways, it must be a small drop, and it will rise after the drop. If the stock price suddenly rises while going sideways, it must be a small rise, and it will fall after the rise.
The sideways trading is the potential accumulation stage, and the oscillation is the strong accumulation stage, which is manifested in the form of washing the market, which means going up and down, which is simple and crude, but it works every time.
3. If it doesn’t hit a new low, it will soon rise; if it doesn’t hit a new high, it will not be good.
If there is no new low, it means that the main force is entering the market to continue to purchase and the bottom will soon be reached. If there is no new high, it means that the dealer is secretly selling, which is very bad.
4. When measuring to the sesame point, if it is low, there will be a big rise, and if it is high, there will be a big fall.
The sesame-point volume is all on the sidelines, with no one buying or selling. Either they are all holding on to their chips and waiting for the price to rise, or the dealer has run out of chips and is waiting for the price to fall.
5. After it rises to the top and then falls slightly, look up again. After it falls to the bottom and rebounds, touch the feet again.
The purpose of poking its head again is for the dealer to sell off the unsold goods, and the purpose of touching the feet again is to collect the chips shaken off the bottom.
Today, I will tell you about the asset allocation in the cryptocurrency circle to keep the fruits of victory.
Regarding asset allocation, most of the investors in the cryptocurrency circle have a concept but no specific practice. Many people speculate in cryptocurrency, but in fact they are imitating Pixiu. The funds only flow in but not out. They only see a steady stream of funds being invested in the cryptocurrency market. They only have profits on paper but do not withdraw the profits, resulting in no actual profit. Although they have experienced many rebounds, they are ultimately trapped.
The cryptocurrency market is volatile. The market created by concepts and hype cannot be sustained. The bull market is short and the bear market is long. If you cannot exit at a high point in the middle to take profit, you will basically face the situation: the money earned by luck will be lost by strength.
Although there are some bigwigs who have achieved financial freedom by holding digital currencies for a long time, they are all individual cases. Behind these individual cases, the silent majority has withdrawn from the market. For ordinary people, it is not advisable to just hold on to digital currencies. Instead, they should have a more detailed and clear asset allocation and be goal-oriented.
In simple terms, personal asset allocation in the cryptocurrency world can be summarized into two focuses, one trading strategy, and a method of rebirth:
Two focuses: position management + capital allocation;
Trading strategies: short, medium and long-term strategies;
The method of rebirth in Nirvana: start from scratch and start again.
1. Funding allocation
Let's talk about fund allocation first. For personal investment, the funds can only be the available funds and idle funds that will not affect your survival. Therefore, borrowing money, lending, mortgaging and speculating in cryptocurrencies are all unacceptable. We are playing with investment, not gambling with our lives.
In terms of fund allocation, with the balance between risk and return as the standard, a sound fund allocation that can withstand market risks must be a diversified combination of low-risk, medium-risk, and high-risk products.
The investment targets in the current financial market are classified according to risk preferences as follows:
Low risk: cash, bank deposits, money market funds, bonds
Medium risk: gold, funds, real estate
High risk: stock market, foreign exchange, digital currency
In terms of fund allocation ratio, investors with different risk preferences vary greatly:
Risk Averse: Low risk: 60%, Medium risk 30%, High risk 10%
Conservative investors: Low risk: 40%, medium risk 30%, high risk 30%
Risk appetite: Low risk: 20%, medium risk: 30%, high risk: 50%
The essence of the cryptocurrency market is high risk and the expected high returns brought by high risk. Therefore, for ordinary people, it is irrational to invest all available funds in the cryptocurrency market without realizing the risks and returns of the cryptocurrency market.
The financial market cannot be a one-sided market. Very few people can make money in the market. We need to rationally allocate the flow of funds, especially in the currency market. We must be cautious rather than blindly go all in.
2. Position management
After clarifying the allocation ratio of various risk assets, we can look at the position management of the cryptocurrency market (taking 50% of the available funds invested in the cryptocurrency market as an example).
Position management in the currency market involves two aspects: one is the position level of cash utilization, and the other is the position management of specific digital currencies.
In terms of cash utilization, in a non-obvious bull market, the position levels of conservative investors are as follows:
Cash: 30%
Digital assets: 50%
Liquidity: 20%
Cash is used to wait for the trend, and is gradually used to increase positions when the trend comes; the digital asset position accounts for 50%, which is not a one-time purchase and holding ratio, but is achieved through fixed investment and market prediction to increase positions in batches; 20% of the working capital is to cope with the short-term market and seize potential opportunities to buy. When the opportunity is over or there is a misjudgment, it should be sold in time to outflow the working capital ratio.
Regarding the positions of digital currencies, you can refer to the following position ratios:
BTC、ETH：60%。
Platform coins: 20%, platform coins of mainstream exchanges, such as HT, BNB, and OKB.
Mainstream coins: 10%, which must meet two conditions: the coin must be in the top 50 in terms of daily trading volume and market capitalization.
Altcoins: 10%, seeking short-term opportunities.
As the leaders in the market, Bitcoin and ETH have absolute advantages in terms of market capitalization, liquidity, and target audience, and are must-have currencies.
In addition, the platform coins of mainstream exchanges with stable profit models and user bases are also must-have currencies. Whether it is the market of mainstream coins or the market of local altcoins, platform coins will perform well. As long as there are transactions, the liquidity of platform coins will not be a problem.
As for the current cryptocurrency market, it is a one-sided market. Mainstream cryptocurrencies follow the BTC market and do not have many opportunities for independent market trends. They only experience greater volatility when they rise or fall together. Therefore, considering stability and profitability, a small amount of allocation is sufficient.
For most altcoins, there is only short-term market trend, and there is no value or necessity for medium- and long-term holding. After several years of development, the era of altcoin storytelling is over. Blockchain projects that have no practical application scenarios and no technical uniqueness basically have little hope.
3. Trading strategy
Next is the trading strategy. Unless professional investors who have been deliberately trained have a relatively complete trading strategy, most people have no strategic thinking. They confuse the concepts of short-term, medium-term, and long-term, and the management of buy and sell positions. Instead, they blindly look for various methods, constantly try and error, but do not summarize and practice a strategy that suits them.
As for trading strategies, to put it simply, one is the short, medium and long-term trading strategy, one is the take profit and stop loss, and the other is the buying strategy. It is enough to master these three points and apply them flexibly.
For short, medium and long-term trading strategies, you need to distinguish each of your transactions, whether it is a short-term transaction, a medium-term transaction or a long-term transaction.
Short-term: The battle ends within 3 days to 2 weeks, and the longest is about 1 month;
Medium term: 2 weeks to 3 months, up to 6 months;
Long term: more than 6 months.
Transactions at different times need to be strictly executed. Short-term transactions generally chase market hotspots in a short period of time. When the market changes, you must exit at any time; mid-term corresponds to trend market, in this process you can gradually build positions and increase positions; long-term market corresponds to large cycles and fixed investment strategies.
Whether it is short-term, medium-term or long-term trading, the key to your profitability in the market is to buy low and sell high. Therefore, no matter what the market is like, we need to stop profit and stop loss in time to grasp the profits at each stage of the market.
It is not easy to calculate the stop profit. Just respond flexibly according to your own expectations and the specific market situation. Don't worry about selling too early and making less money. Compared with losses, making a profit is already a victory over most investors in the market. After experiencing so many market conditions, everyone can find that it is not difficult to make a profit on paper, but it is difficult to stop profit in time.
It is relatively easy to make a plan for stop loss, but it is difficult to execute it, especially when one is paranoid and goes against the trend. There are countless cases where one misses the stop loss and gets trapped because of one's emotions.
If you don’t know how to stop loss, you can follow the following method:
Short-term: Loss within 20%, stop loss immediately if there is no result after buying. Short-term is to get short-term opportunities. If the judgment fails, cut it off and stop loss immediately. Do not delay and try to wait for the market to improve.
Mid-term: Loss within 30%, stop loss at once. Because mid-term positions are not bought all at once, but in several times, relatively speaking, the average price is similar to the cost of exiting the short-term with a 20% loss, or even less.
Long-term: loss of about 30%. Note that this is not a liquidation operation, but a stop loss in batches. Each stop loss is for a profitable position established at a low level.
The buying strategy does not mean a one-time all-in operation, nor does it require a light position every time. Instead, it requires differentiated buying based on whether the transaction is short-term, medium-term, or long-term.
Short-term: full position. Since it is a short-term investment, just buy it all at once. There is no need to wait, because the opportunity is fleeting.
Mid-term: Buy in 1-3 times. The first time is to intervene with a light position and wait for the development of the market. After obvious signals appear, you can gradually increase your position.
Long-term: Buy in batches, similar to the fixed investment strategy, through long-term continuous investment, to achieve the purpose of reducing the purchase cost. When buying in batches, the space and time should be opened up a little. You can't make up for the position several times when the price drops by 5% or in just one week. At least 10% of the space is needed, and it takes two weeks to one month. It is recommended to appropriately reduce the sensitivity to short-term fluctuations and slowly learn to operate in large cycles.
4. Nirvana Rebirth Method
Finally, let’s talk about the method of Nirvana rebirth. It is actually very simple. No matter what the reason for your current position, and no matter whether your account is profitable or losing money, since the current result has been caused, it means that your previous methods and strategies were problematic. The only way to escape reality is to start over again.
To put it bluntly, sell all the digital currencies in your account, exchange them for stablecoins or cash, and then start again according to the various methods mentioned above. Each operation must be made rationally, with methods and strategies, so that there will be no previous burden.
But this is actually the most difficult part. It is equivalent to starting over again, telling yourself that all past operations were wrong, and admitting your failure.
There is also a second meaning of nirvana rebirth. The currency market cannot have long-term thinking, but must constantly clear positions and start again at high points or appropriate prices according to the changes in the bull and bear markets.
Otherwise, it is inevitable that you will be restricted by historical positions and operations. You will be unwilling to stop losses when you should, and you will be too greedy when you should stop profits. In the end, the money you earned will be returned to the market. You will see a steady stream of real money being invested in the currency circle, but no funds are being withdrawn. This is a completely paradoxical market.
Of course, this does not mean that you should cut your losses and start over when the price is low, but you should have the awareness of clearing the gap and try this operation when you think it is appropriate, urgent, or when the market rebounds to the right time. After all, it is much easier to travel light than to travel far with a heavy load.
Ten years of hard work have gone into sharpening a sword. I would like to share these words from the bottom of my heart to guide those who are destined to do so and avoid taking detours. Cryptocurrency trading is not difficult. I have never felt tired, but rather enjoyed it. Just like those late-night game enthusiasts, how could they feel tired?
Want to double your account, want to eat big money, want to successfully return your investment
Follow the rainy day and get in position for the main bull market trend in advance!
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