Monthly salary of 3,000, annual income of 36,000, lifetime total income is expected to reach 1.44 million;
Monthly salary of 4,000, annual income of 48,000, lifetime wealth accumulation may reach 1.92 million;
Monthly salary of 5,000, annual income of 60,000, lifetime total income is expected to be 2.4 million;
Monthly salary of 6,000, annual income of 72,000, lifetime accumulated wealth may reach 2.88 million;
Monthly salary of 7,000, annual income of 84,000, lifetime income is expected to be 3.36 million;
Monthly salary of 8,000, annual income of 96,000, lifetime total income is estimated to reach 3.84 million;
Monthly salary of 9,000, annual income of 108,000, lifetime wealth accumulation is expected to exceed 4.32 million;
Monthly salary of 10,000, annual income of 120,000, lifetime total income is expected to be 4.8 million;
Monthly salary of 20,000, annual income of 240,000, lifetime wealth accumulation may reach 9.6 million;
Monthly salary of 30,000, annual income of 360,000, lifetime total income is estimated to be 14.4 million;
Monthly salary of 40,000, annual income of 480,000, lifetime wealth accumulation may reach 19.2 million;
Monthly salary of 50,000, annual income of 600,000, lifetime total income is expected to reach 24 million.
However, there are very few people with monthly salaries over 10,000, and even fewer earning over 20,000. Most people still linger below 10,000, seemingly indicating that the lifetime income of ordinary people can barely afford a house.
So, how much do you want to earn in the cryptocurrency space before you are willing to stop?
If you are over 50, my suggestion is to hold 10 Bitcoins; after all, the future value of Bitcoin is likely to soar to the million level. Conservatively estimated, one Bitcoin could be worth a million; 10 Bitcoins would be ten million. Holding 10 Bitcoins is equivalent to having a lifetime income of a typical elite worker!
If you are in your forties, then 5 Bitcoins are already sufficient;
If you are in your 30s, 2 Bitcoins are enough to meet your needs;
If you are in your youth, 0.5 Bitcoin is already enough;
If you are still a child, then 0.36 Bitcoin is already enough.
If you have entered the 30s to 40s age group and currently hold 20 Bitcoins, you have the key to a free life; if you hold 100 Bitcoins, the whole world will be at your command. Go for it, friends in the cryptocurrency space!
There are various ways to make money, but the lessons learned are often quite similar.
My cryptocurrency journey of 13 times return in one year and investment strategy:
The first major principle, product selection, and timing: study good targets and understand how to buy them well.
Several indicators for buying good targets include:
1. Fundamentals; good fundamentals can be held for the long term, so at worst, you might be trapped for 3-4 years, but in the next bull market, you could still make several times the profits.
2. Price; buy at a relatively low price.
3. Timing; if there is a trend later, recouping will be faster. For example, if there is strong positive news later, buying at the end of the bear market is better than buying at the beginning. After all, at the beginning of the bear market, your money might be trapped for 1-3 years; buying at the end of the bear market, the trend will rise quickly, and your money will quickly multiply.
The second major principle: study the top indicators clearly, and make low buys and high sells based on the entire bull market cycle with large positions.
I personally have always used the core indicators for the bull market top in internal communities:
1. The market cap proportion of BTC; if at the bull peak, it is highly likely to drop below the previous low of 36, and if it drops below 40, special attention is needed. For example, 9.7 is a significant drop after hovering around a 40 market cap proportion.
2. The ETH/BTC ratio, when it breaks above 0.1, aims to reach around 0.12, or even 0.14-0.2. When it breaks above 0.1, pay special attention to the risk of significant pullback.
The third major principle, coin-based. Coin-based is a very important core philosophy for me. I use coin-based grids to earn coins.
I am Bitcoin based; although many people buy various altcoins, ultimately 96% of people cannot outperform those who hold Bitcoin. Therefore, my goal is to use the market's fluctuations to earn Bitcoin, especially by selecting my targets to earn Bitcoin. I open Bitcoin-based grid orders using quantitative grids, which keeps my risk relatively low. When other coins rise relative to Bitcoin, I will sell them in batches to buy Bitcoin. When the market drops, I will sell Bitcoin to buy these coins (because Bitcoin tends to drop less relative to other coins).
The fourth major principle: combining long and short trading systems: for example, my long positions are for holding coins, and I absolutely do not engage in short-term high selling and low buying.
I use quantitative grids for my short positions to help me automatically perform high selling and low buying. The profit from grid high selling and low buying is similar to the profit from the appreciation of my holdings.
The fifth major principle: patience, accumulating in low positions, holding coins patiently, and not chasing highs.
You must be patient; valuable coins will certainly rise, but the sectors will rotate, so it's impossible to catch every coin that rises explosively.
When the coins in hand are stagnant, and you want to sell them to chase other coins, take the time to study the coins you have—its team, business, sector, official website, community (Twitter, Instagram), etc.
Don't sell everything just because you waited too long and then saw a slight increase; after waiting so long, you missed out on the significant rise.
As the saying goes, holding onto coins is harder than holding onto a lover. The best way to hold coins is actually to set up a grid, especially a coin-based grid, which can outperform coin hoarding with relatively lower risk.
The sixth major principle: You must think carefully about your trading rhythm and trading cycle view.
Many people watch the market every day but do not know what time frame they should be looking at. If looking at minute charts, it results in constant bull-bear transitions, leading to poor sleep and appetite.
Generally speaking, start by looking at the larger cycles, then go down to the smaller cycles.
If you are a long-term holder, look at weekly charts, then daily charts, and four-hour charts, occasionally check 1-hour and 30-minute charts; primarily to view buying opportunities, generally avoid looking at 1-minute and 5-minute charts. I have made big mistakes in the past by often looking at 1-minute and 5-minute charts, leading to anxiety. Short-term trading is likely to lead to fewer coins, as many people can't even make money in fiat currency, let alone increase the coins they hold.
Looking at the K-line time cycles determines the maximum holding time: for 1-minute, it's dozens of minutes; for 5-minute, several hours; for 15-minute, one or two days; for 1-hour, several days; for 4-hour, several weeks.
The basic principles of Dow theory applied to the cryptocurrency market can be summarized in the following six points.
First, the average price absorbs and digests all factors. Fundamentals, policy, news, and capital can all influence supply and demand relationships, and all of this will be directly reflected on the market, with the market ultimately digesting and absorbing through price changes.
Second, the market has three types of trends. Dow divides trends into three categories: major trends, necessary trends, and short-term trends.
The main trend is like the tides of the sea, belonging to the long-term trend, similar to the seasonal cycle of the cryptocurrency market, with no beginning or end to the bull and bear cycles.
Minor trends are the waves in the tide, representing pullbacks in the main trend, usually pulling back to these three important Fibonacci levels: 38%, 50%, and 62%. Short-term trends are ripples, indicating slight fluctuations that have high uncertainty and change rapidly.
Third, the major trend can be divided into three stages. The first stage is the accumulation phase, similar to yin and yang; it refers to the end of a bear market. Although everyone is bearish, it has already dropped as much as it can, and the major players begin to accumulate gradually at this point.
The second stage is the bullish attack stage, positive news begins to appear, and most retail investors with some technical knowledge gradually enter the market, causing prices to start to rise gradually.
The third stage is the climax sprint. At this time, major media starts to flood with good news and boldly predicts the continued rise in prices. Retail investors actively buy in, and no one wants to sell, fearing they will miss this once-in-a-lifetime opportunity to make money. However, in reality, the major players who bought at the bottom have already started to sell off.
Fourth, various average prices must mutually validate each other. For example, the joint increase of Bitcoin and mainstream coins must exceed the peak of the previous medium trend to be considered the arrival of a large-scale bull market! Similarly, if the joint decrease of Bitcoin and mainstream coins falls below the neckline of the high-level fluctuation phase in the bull market trend.
Fifth, trading volume must validate trends. Dow believes that volume is the second most important factor in technical analysis. When prices develop along the major trend, trading volume should also increase correspondingly.
Sixth, we can only determine that an established trend has ended when there is undeniable reversal signal. A strong trend has inertia and will generally continue to move in the main direction for a while, so we must wait until the trend confirms a reversal, such as the head and shoulders pattern confirming the break of the neckline before considering the trend reversal.
Dow theory is a macro technical analysis system, aimed at capturing the most significant segment of important market movements in practical trading, that is, the middle part of the most delicious fish belly.
Its advantage lies in successfully determining the macro trends of bull and bear markets, but its drawback is also obvious, as the signals are usually delayed, often missing 20% to 25% of the profit space.
Secret methods of the cryptocurrency world; mastering one can unlock a life of wealth. A single trick can truly make you prosper.
1. The longer the sideways trading lasts, the higher the price will go; the longer the sideways trading, the higher the potential rise.
Sideways consolidation is a sign of bottom accumulation; the more chips are accumulated, the greater the ambition.
2. When it fluctuates sideways and suddenly drops, it must be a small drop, and after the drop, it must rise. When it fluctuates sideways and suddenly rises, it must be a small rise, and after it rises, it must drop.
The sideways accumulation phase is characterized by strong accumulation, manifested as wash trading, which means back-and-forth fluctuations, simple and crude, but always effective.
3. Not creating new lows indicates a potential rise; not creating new highs indicates trouble.
Not creating new lows indicates that major players are continuously buying in, about to reach the bottom; not creating new highs indicates that the operators are secretly selling off, which is a big problem.
4. Small volume at a critical point means a potential large rise; a peak means a potential large drop.
The volume at critical points is observing; no one is buying or selling. They are either holding onto chips waiting for a rise or the operators have run out of chips waiting for a fall.
5. After a shallow drop to the peak, re-examine; after a drop to the bottom, bounce back and then touch the bottom.
Re-examining the peak is when the operators sell off the remaining goods again; touching the bottom is to collect the shaken-off chips from the bottom once more.
Today, let's clarify asset allocation in the cryptocurrency space to secure the fruits of victory.
Regarding asset allocation, although most cryptocurrency investors have concepts, they lack specific practices. Many people trade coins, actually mimicking a Pi Xiu, with funds only going in and not out. They only see continuous funds flowing into the cryptocurrency market, having only paper profits without extracting the earnings, leading to the reality of not making money. Despite experiencing many rebounds, they ultimately end up trapped.
The cryptocurrency market is highly volatile; trends created by concepts and hype cannot be sustained. Bull markets are short, and bear markets are long. If you cannot take profits at high points midway, you generally face the situation of: money earned by luck being lost due to inadequate skill.
Although there are some big players who achieve financial freedom through long-term holding of digital currency, those are exceptions. Behind the exceptions are the silent majority who quietly exit the stage. For ordinary people, hoarding is not advisable; rather, a more detailed and clear asset allocation should be made, guided by goals.
Personal asset allocation in the cryptocurrency space can be simply summarized as two focuses, one trading strategy, and one method of Nirvana rebirth:
Two focuses: position management + capital allocation;
Trading strategy: short, medium, and long-term strategies;
Nirvana rebirth method: start over from zero.
1. Capital allocation
First, let's talk about capital allocation. For personal investments, capital can only be your available funds and idle funds that won't affect your livelihood. Therefore, borrowing, lending, or mortgaging to trade coins is completely inadvisable. We are here to invest, not to gamble our life savings.
In terms of capital allocation, the balance of risk and return is the standard. A sound capital allocation capable of withstanding market risks must be a diversified combination of low-risk, medium-risk, and high-risk products.
For current investment targets in the financial market, they can be classified according to risk preference 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 capital allocation ratios, there are significant differences among various risk-tolerant investors:
Risk-averse: low risk: 60%, medium risk: 30%, high risk: 10%
Stable investors: low risk: 40%, medium risk: 30%, high risk: 30%
Risk-tolerant: low risk: 20%, medium risk: 30%, high risk: 50%
The essence of the cryptocurrency market is high risk, and the expected high returns that come with high risk. Therefore, for most people, investing all available funds in the cryptocurrency market without recognizing the risks and returns is inherently irrational behavior.
Financial markets cannot be one-sided; very few can make money in the market. We need to rationally allocate the flow of funds, especially in the cryptocurrency market, where caution is needed, rather than blindly going all-in.
2. Position management
Once the allocation ratios for various risk assets are clarified, we can look at position management in the cryptocurrency market (taking 50% of available funds invested in the market as an example).
Position management in the cryptocurrency market involves two aspects: one is the cash utilization level, and the other is the specific digital currency position management.
In terms of cash utilization, the position level for stable investors in non-obvious bull market conditions is as follows:
Cash: 30%
Digital assets: 50%
Liquid funds: 20%
Cash is used to wait for trending markets, and when a trending market arrives, gradually increase positions; the proportion of digital asset positions is 50%, which is not a one-time purchase holding proportion, but is gradually increased through systematic investment based on market predictions; 20% of liquid funds are for responding to short-term trends, seizing potential buying opportunities, and when opportunities pass or judgments are mistaken, timely selling is necessary, reducing the proportion of liquid funds.
For specific digital currency positions, refer to the following allocation ratios:
BTC, ETH: 60%.
Platform coins: 20%, such as HT, BNB, OKB from mainstream exchanges.
Mainstream coins: 10%, must meet two conditions: daily trading volume proportion and market cap ranking in the top 50.
Altcoins: 10%, for seizing short-term opportunities.
Bitcoin and ETH, as market leaders, dominate in market cap, liquidity, and audience, making them essential coins to allocate.
In addition, mainstream exchange platform coins with stable profit models and user bases are also essential coins to allocate. Whether in the mainstream coin market or the local altcoin market, platform coins will perform well as long as there is trading; the liquidity of platform coins is not a concern.
As for the current cryptocurrency market, it is a one-sided market, where mainstream coins follow the BTC market and do not have too many independent trend opportunities. There are only characteristics of greater volatility when moving together, so considering stability and profitability, a small allocation is sufficient.
For most altcoins, there are only short-term trends, and there is no value or necessity for medium to long-term holding. After years of development, the era of altcoins telling stories has ended; blockchain projects without practical application scenarios or unique technological features have little hope.
3. Trading strategies
Next is the trading strategy. Unless you are a professionally trained investor with a well-developed trading strategy, most people do not have a strategic mindset. They confuse the concepts of short, medium, and long-term trading and position management for buying and selling, randomly seeking various methods, continuously trial and error, without summarizing and practicing strategies that suit them.
As for trading strategies, simply put, one is short, medium, and long-term trading strategies; one is profit-taking and loss-cutting; one is buying strategies. Mastering these three points and applying them flexibly is sufficient.
For short, medium, and long-term trading strategies, you need to differentiate each of your trades as short-term, medium-term, or long-term trades.
Short-term: battles end within 3 days to 2 weeks, at most 1 month;
Medium-term: 2 weeks to 3 months, at most 6 months;
Long-term: over 6 months.
According to different trading times, strict execution is required. Short-term trading generally pursues hot spots in a short time frame, and when market conditions change, one should exit at any time; the medium-term corresponds to trend trading, where positions can be gradually built up; long-term trading corresponds to larger cycles and systematic investment strategies.
Regardless of short, medium, or long-term trading, the key to profitability in the market is still buying low and selling high. Therefore, no matter how the market moves, we need to timely take profits and cut losses, seizing profits at every stage of the market.
Calculating profit-taking is actually difficult; just respond flexibly based on your expectations and the specific market conditions. Don't worry about selling too early or earning a little less. Compared to losses, being able to earn is already overcoming the vast majority of investors in the market. After experiencing so many market conditions, everyone can actually discover that making paper profits is not hard; the challenge lies in timely profit-taking.
Regarding stop-loss, it is relatively easy to formulate a plan but difficult to execute, especially when being stubborn and going against the trend. Due to one's emotions, missing stop-losses leads to being trapped, and this situation is hard to count.
If you don't know how to stop-loss, you can execute it as follows:
Short-term: loss within 20%, immediately stop-loss without results after buying. Short-term is to seize short-term opportunities; if the judgment fails, cut losses immediately, and don't delay trying to wait for the market to turn.
Medium-term: loss within 30%, stop-loss in one go. Because the medium-term position is not a one-time purchase, but bought in several batches; relatively speaking, the average cost is similar to that of a short-term 20% loss exit, even less.
Long-term: around 30% loss; note that this is not a liquidation operation but a phased stop-loss, stopping losses on profitable positions built at low levels.
Buying strategy is not a one-time all-in operation, nor does it require light positions every time, but should distinguish between short, medium, and long-term buying based on the trading.
Short-term: all-in, since it is short-term, just buy in one go, no need to wait, because opportunities are fleeting.
Medium-term: buy in 1-3 batches, the first time is light position entry, waiting for market development. After obvious signals appear, you can gradually increase positions.
Long-term: buy in batches, similar to a systematic investment strategy, continuously investing over a long period to lower the average purchase cost. When buying in batches, both space and time should be kept apart; you can't buy multiple times after a 5% drop or just a week. At least a 10% space and a time frame of two weeks to over a month is recommended. It's advisable to gradually lower sensitivity to short-term fluctuations and slowly learn to operate in larger cycles.
4. Nirvana rebirth method
Finally, let's talk about the Nirvana rebirth method, which is actually very simple. Regardless of the reason for your current position, and regardless of whether your account is profitable or not, since the current result has occurred, it indicates that your previous methods and strategies have problems. The only way to escape reality is to start over from zero.
To put it bluntly, sell all the digital currencies in your account, exchange them for stablecoins or cash, and then restart according to the various methods above. Each operation must be a rational investment with methods and strategies to avoid carrying previous burdens.
However, this is actually the hardest part, equivalent to starting over. One must tell oneself that all past operations were wrong and acknowledge one's failures.
There is also a second layer of meaning in the Nirvana rebirth; the cryptocurrency market cannot have a long-term mindset but must constantly adapt based on market bull and bear transitions, repeatedly clearing positions at high points or suitable prices to restart.
Otherwise, it is inevitable to be restricted by historical positions and operations. When it's time to stop-loss, one is reluctant; when it's time to take profit, one is too greedy, ultimately leading to giving back the earned money to the market. One continually pours real money into the cryptocurrency space without extracting funds, which is a complete paradox.
Of course, this does not mean that you should cut losses and restart at a low position right now, but rather have the awareness of starting over. When you feel appropriate or urgent, or when the general market rebounds to a suitable moment, try this operation. After all, traveling light is much easier than carrying heavy burdens.
A sword is forged over ten years; these heartfelt words are meant to guide those with fate, to avoid detours. Trading coins is not a difficult task; I have never felt tired, instead, I enjoy it, just like those night-time gaming enthusiasts who never complain of fatigue.
Successfully recouped the original investment and doubled the account. Keep close to the past, seize the opportunity early, and enjoy the juicy profits!!!
Continuously pay attention: SKATE MEMEFI
