Years ago, when I just entered the crypto space, like most retail investors, my losses and gains seemed entirely dependent on luck, and I couldn't grasp the patterns.
However, after staying in the crypto space for a few years, through continuous learning and absorption, along with constant sharing and guidance from mentors and seniors, I finally started to understand and form my own investment system!
Initial Stage: From 100,000 to 1 million (2020-2021).
1. Seize DeFi Summer+ (2020).
Strategy: Early participation in liquidity mining (such as Uniswap+, SushiSwap+).
Key Operations:
Use a principal of 50,000 to provide ETH+-USDT liquidity, with an annual return of 300%-1000%.
Mining tokens (UNI, SUSHI) soared after listing, earning over 500,000.
Lessons:
Impermanent loss is a big risk; you need to calculate the breakeven point of the LP pool.
2. Early Bull Market Layout (2021).
Strategy: Heavily invest in BTC+, ETH, and small positions in altcoins.
Key Operations:
BTC rose from 10,000 to 60,000, with holdings increasing 6 times.
ETH rose from 400 to 4800, with holdings increasing 12 times.
Small coins (like SOL+, MATIC+) can multiply 20-50 times in part of the position.
Result: At the end of 2021, assets exceeded 5 million.
Second, Advanced Stage: From 5 million to 15 million (2022-2023).
1. Escape the peak of the 2021 bull market.
Strategy: Observe market sentiment + on-chain data.
Key Indicators:
Sudden increase in BTC supply on exchanges (whales start unloading).
Fear and Greed Index > 90 (Extreme Greed).
BTC futures funding rates are abnormally high (overheating among bulls).
Operations:
In November 2021, when BTC was close to $69,000, sell 80% of the position in batches.
Keep 20% in spot to avoid missing out.
2. 2022 Bear Market Bottom
Strategy: Dollar-cost averaging + adding positions at key support levels.
Key Operations:
Start dollar-cost averaging BTC below $20,000 (buy weekly).
Gradually add positions below $1000 for ETH.
Layout Layer 2 sectors (ARB+, OP+).
Result: When the bull market started in 2023, the value of holdings rebounded to 15 million.
3. Capture narrative hotspots in 2023.
Strategy: Anticipate market hotspots in advance.
Key Operations:
BRC-20 (ORDI+): Buy at 3, buy at 3, sell at 90, 30 times profit.
Solana ecosystem (BONK+, PYTH+): Low-level layout, with some positions 10-50 times.
AI Sector + (RNDR+, TAO): Build positions in early 2023, explosive growth in 2024.
Three, Explosive Stage: From 15 million to 30 million.
1. The main wave of the bull market in 2024.
Strategy: Trend trading + swing arbitrage.
Key Operations:
After the BTC ETF approval, the price rose from 30,000 to 70,000, doubling the holdings.
ETH Cancun upgrade drives the L2 sector (ARB, STRK) to rise.
Meme coin frenzy (PEPE, WIF) short-term trading profits.
2. Precision Contract Sniping (High Risk).
Strategy: Low leverage (5-10 times) + trend following.
Key Operations:
**Open long when BTC breaks 50,000**, set stop-loss at 48,000, and ultimately rise to $70,000.
Add positions after ETH breaks 3000**, target 4000, with a profit of 30%+.
- Risk Control:
Single contract position should not exceed 5% of total capital.
Strictly stop-loss to avoid emotional holding.
3. Cross-Market Arbitrage.
Strategy: Utilize exchange price differences + arbitrage.
Key Operations:
Binance vs. OKX BTC price difference arbitrage (annualized 15%-30%).
BTC spot vs. futures positive arbitrage (lock in risk-free returns).
Fourth, summary of core profit logic.
1. Long-term value investment (50% position).
BTC and ETH as core assets; hold long term.
Leading projects in Layer 2, AI, Depin, and other sectors.
2. Trend Trading (30% position).
Invest during the main wave of a bull market; dollar-cost average at the bottom of a bear market.
Combine technical analysis (EMA, RSI) to improve win rates.
3. Short-term speculative trading (20% position).
Seize market FOMO sentiment (such as meme coins and new public chains).
Quick in and out, don’t fall in love with positions.
4. Strict risk control (most important!).
Never go all in; single asset positions should not exceed 20%.
Stop-loss discipline; force exit if losses exceed 10%.
Cash flow management; keep 30% cash to deal with extreme conditions.
Five, advice for ordinary investors.
1. Don't fantasize about becoming rich overnight; 90% of contract players end up at zero.
2. Dollar-cost average in bear markets, take profits in bull markets; cycles are more important than techniques.
3. Pay attention to on-chain data; whale movements are more real than K-lines.
4. Keep learning; the market is evolving, and strategies must be updated.
In 2025, opportunities to make money in crypto still exist, but most people will only lose money.
To survive in this market and make money, you need strategies, cognition, and execution, not just luck.
1. You need to clarify which cycle the current market is in.
In 2025, the most important reference factor will be Bitcoin's halving (April 2024). Historical data indicates that after halving there is typically a half-year of fluctuating accumulation, followed by a main wave. Therefore, if the first half of 2025 is still in a low-level fluctuation, it will be a golden period for adding positions.
If the market has already surged to a high position, you need to be prepared to defend; don’t chase high and sell low.
Early Bull Market (Low-Level Fluctuation): Position BTC, ETH, and potential altcoins, patiently waiting for the market to start. Mid Bull Market (Main Wave): Pay attention to market sentiment, take profits at highs, and don’t get attached.
End of Bull Market (FOMO at its peak): Take profits, gradually liquidate positions, and avoid becoming the bag holder.
2. Choose the right investment strategy.
There are only three ways to make money in the crypto space: hold, swing trading, and contract leverage.
Conservative (dollar-cost averaging):
Suitable for ordinary people; don’t chase highs, don’t panic, don’t trade frequently; only buy mainstream assets like BTC and ETH.
2025 Strategy: Buy on dips, invest monthly, hold steadily for 1-2 years until the bull market cashes out.
Advanced (Swing Trading):
Suitable for those with some experience, making high sell and low buy trades when market trends are clear.
2025 Strategy: Watch trends, go with the flow. Don’t be greedy when prices rise and don’t panic when they fall; remember to take profits and stop losses.
Aggressive (contract leverage):
High risk, but if the direction is right, the speed of making money is fast.
2025 Strategy: Low leverage, strict risk control; don’t go all in, don’t trade mindlessly.
3. Which sectors to focus on in 2025?
BTC and ETH: Always core assets, a safe haven for capital.
Layer 2 (scaling sector): As ETH develops, the L2 ecosystem may explode, such as Arbitrum, Optimism, etc.
AI + Blockchain: The A boom may drive related projects; pay attention to industry leaders.
GameFi/NFT: If a bull market comes, these sectors may experience explosive growth again, but quality projects need to be carefully identified.
4. Mindset and execution are the most critical.
If you can’t hold, you won’t make big money: From 2020 to 2021, many people sold BTC too early and regretted it.
Only make money from what you understand in a bull market: sometimes doing nothing is more profitable than chaotic operations.
Always have a profit-taking and stop-loss plan: it’s not about making the most money, but about making money steadily.
Conclusion.
The core logic of making money in the crypto space in 2025 is: go with the trend, hold positions patiently, control risks, and don’t think about becoming rich overnight. As long as you can capture the main wave of the bull market, layout in advance, and take profits at the right time, financial freedom is not a dream. But if you mindlessly go all in and frequently chase highs and sell lows, the final outcome may be losing money and exiting.
In the cryptocurrency market, conditions change rapidly. How to accurately capture opportunities with 8 major technical analysis indicators in the crypto space, analyzing their application methods and practical skills to help you better identify market signals and improve your trading success rate.
Crypto Technical Analysis Indicators Introduction 1. Moving Average (MA): A tool for trend judgment. Definition: Moving averages smooth out data fluctuations by calculating the average price over a period, helping you judge the overall market trend.
Application Skills: Golden Cross: Short-term moving average crosses above long-term moving average, often seen as a buy signal. Death Cross: Short-term moving average crosses below long-term moving average, suggesting a potential sell opportunity.
2. Relative Strength Index (RSI): Overbought and oversold signals.
Definition: RSI measures the speed and magnitude of price changes, with a value range of 0 to 100.
Application Skills:
When RSI exceeds 70, it usually indicates that the market is overbought, increasing risk.
If RSI is below 30, it may be an oversold area, indicating a buying opportunity.
3. Average True Range (ATR): Volatility Indicator.
Definition: ATR is used to measure market volatility; the higher the value, the more severe the fluctuations.
Application Skills:
Can help you set reasonable stop-loss levels, for instance, set the stop-loss at 1.5 times the current ATR to reduce risk.
4. MACD Indicator: Dual validation of momentum and trend.
Definition: MACD uses the difference between two exponential moving averages (EMA) to generate momentum signals.
Application Skills:
Cross Signal: MACD line crossing above the signal line is a buy signal; conversely, it is a sell signal.
Histogram changes: Expansion or contraction of the histogram helps judge the strength of the trend.
Volume validation: Regardless of which indicator you use, volume is always an important basis for judging market sustainability; be sure to observe it together. Conclusion: Technical analysis is just part of crypto trading; successful trading requires continuous learning, practical summaries, and good risk management. I hope the indicators and practical combinations introduced in this article can help you.
Having been in the crypto market for over 10 years, I consider myself to have outperformed 90% of contract traders in the market. I have experienced capital pools, contracts, and arbitrage, and have also been ruthlessly harvested by market makers. I have encountered all the pits that the market has to offer in this mysterious field full of opportunities and challenges. Some people become rich overnight while others lose everything.
When you grow from several thousand to tens of thousands, you will touch some ideas and logic for making big money, and your mindset will stabilize significantly.
After that, continuously replicate successful experiences.
Don't always fantasize about millions or even a billion; start from your actual situation, avoid empty talk, after all, boasting will only make the bull comfortable.
Two years ago, I met a senior in Shanghai who easily withdrew over 12 million from the crypto space using the simplest method. He taught us that the way of the great is always simple; if you overcomplicate trading, the more factors you consider, the less accurate your judgment will be.
Those who lose money trade like this; wanting to profit is actually very simple, just find a method that suits you and you are good at, and do it repeatedly. Before you know it, your account balance will increase.
Here are a few tips he shared; as long as you can learn them, it's not a problem to earn some pocket money, even if you don't make dozens or hundreds of times like the predecessors.
First, wait a bit for the high and low arrangement. When the market is in consolidation, it is best to observe for a while, as the market will change after consolidation. After a clear trend appears, that’s when we should act.
Second, don’t get attached to hot positions; regularly change holdings. If you start and finish a position, you may end up with nothing. All short-term hot positions are speculation; once the heat passes, funds will immediately exit. If you're slow, you'll be left alone in the wind.
Third, an upward gap suggests hope for a large rise; when K-lines slowly rise, a large opening bullish candle appears, and volume increases, indicating the market is entering an acceleration phase. At this time, we must be patient, hold our positions steady, and what follows will be a large profit.
Fourth, don’t fall in love with large bullish candles; exit decisively at the end of the day, regardless of whether it’s at a high or low. After a large bullish candle appears, there will always be a pullback. Even if it hits the limit up, you should exit. We need to prevent profit drawdown.
Fifth, buy on red lines even if you bought incorrectly on a downtrend, and sell on green lines even if you sold incorrectly. Here, 'lines' refer to moving averages or important support or resistance levels. Short-term traders generally only look at daily moving averages and daily attack lines. I don't like to drag things out; generally, I only hold for three days, at most no more than a week, even if the prospects look good afterwards, it has nothing to do with me.
Sixth, don’t get attached to mid-high positions; don’t sell, don’t dive, don’t buy; stay still during sideways movement. This can be considered a basic principle for survival in the crypto space. If you want to survive in the crypto space for a long time, you must remember this phrase.
Seventh, buy in; prepare first, it’s better to enter less than to over-invest. No matter how confident you are, you shouldn’t put all your funds in at once. Because in the crypto space, the only constant is change.
Eighth, learn to read news and interpret market information; when major news comes out, it is usually when cryptocurrency prices fluctuate the most, potentially rising or falling sharply. Traders need to make judgments; for beginners, it's advisable to mainly observe during significant news.
Ninth, learn to read the technical aspects, master knowledge of technical indicators. Learning technical indicators is a long-term accumulation; set yourself a learning plan to study moving averages, KDJ, Bollinger Bands, K-lines, volume-price relationships, capital flows, etc.
Tenth, make a trading plan. Don’t trade frequently; frequent trading not only incurs high fees but also affects trading psychology, losing rational judgment.
Eleventh, do good risk control; during trading, properly set stop-loss and take-profit levels. Control risk and keep both profit and risk within an acceptable range. When the price reaches the stop-loss or take-profit point, the system will automatically help me.
