Financial freedom at 28! Entered the crypto space at 25 and earned 8 figures in 3 years.
A bloody warning: 99% of people fail due to 'mindset', not technology!
At 25, I jumped into the crypto space with all my savings of 50,000; by 28, I made enough money from trading cryptocurrencies for a lifetime, with assets exceeding 10 million. No team,
Without any insider information, and not having worked a day — now I wake up naturally every day, walk my dog, drink tea, watch K-lines. Worries? Non-existent.
But if you think this is a 'feel-good motivational article', you can swipe away now.
The truth I want to say may send chills down the spines of 80% of people in the crypto space.
Making 10 million does not require extraordinary abilities; you just need to understand the principles of making money.
First, you need a bait, which is the cash flow from your off-market income. For example, 50,000-100,000 a year. This is to ensure you don’t have to sell assets and miss opportunities.
Second, in the face of good opportunities, such as a bull market or bear market in crypto, do not invest excessively. This excess does not mean you cannot have a super heavy position; it means you cannot let the joy of the moment cloud your judgment, leading to unnecessary actions, and absolutely avoid using leverage, borrowing, etc.
Having achieved these two points, for the third, you need a bubble opportunity. A bubble opportunity refers to when everyone’s assets are skyrocketing, playing the same asset, and everyone is wealthy. Note that during this time, you must sell, turning the bubble into an art. The market can allow everyone to have floating profits, but it cannot allow everyone to make money. When everyone has floating profits, that is the bubble opportunity; sell decisively.
Moreover, you need to have gone through 1-3 bubble opportunities, mastered the methodology to deflate bubbles, and the money you earn should not be used for any purpose until there are no more bubbles to buy in.
If you purely hold onto a position, you are likely unable to hold it. You must actively apply methodologies; it is not about just holding on. If you have a lot of money, you can hold, but if you have little, you must give up some safety to bet on the bear market cycle.
When everyone advises you not to buy, when everyone says it cannot be bought, there is a huge cognitive gap.
They are the source you can get close to bubbles. If they all say it's good, you will definitely get dragged down; there are no opportunities.
Assets of the bubble explosion type must not be shitcoins or air coins; if you sense the possibility of them dying, you should not choose them.
You must have traversed through two cycles and still continue to rise; only BTC is certain.
Another aspect is the mindset.
I have a particularly contradictory problem: if I don’t get married or have children in my life, saving money to become wealthy means that when I grow old, I will have the habit of frugality but no heirs to inherit my wealth. Isn’t that quite sad? But if I don’t do this, I might also end up broke when I grow old, which is also sad.
Rest assured, even if you save frugally, you will not become a wealthy person. The process of making money, if it does not ignite your interest to the point of losing sleep, and lacks intrinsic motivation beyond making money, you will not become wealthy, nor will there be anything for someone to inherit.
You must spend when necessary; a normal life. I once took a frugal path, which was a madman's behavior. Now I understand that it is actually wrong. Most people cannot manage it. In the end, they will mentally collapse.
After making 10 million, how to preserve it.
1. Some assets are opportunities of the times; the next one will have to wait. There will be such assets after BTC. But you have to wait.
The assets may change, but human sentiments do not.
2. Can you maintain the same standard of living after having a net worth of 10 million? It's not about saving; it's about maintaining the same level as before; this is the key.
3. You cannot expand or create chaos; starting to spend wildly after making money is a sign of decline.
4. Break free from the cognitive pressure caused by social relationships at all levels, such as when others ask to borrow money from you, seek your investment, or emotionally blackmail you.
Some people will be led away by women, and some will be led away by friends. Once you have money, there will definitely be people trying to find ways to get money from you.
You are everyone’s client around you; you must maintain vigilance; most people cannot pass this hurdle.
Those who break through will lose a lot and gain solitude.
Survival rules in the crypto space: 15 iron rules to navigate through volatility.
In the ever-changing crypto space, survival is the ultimate victory. There is no celebration for the lucky; only long-term victories for those who strictly adhere to the rules. The following 15 survival rules are key guides for navigating market cycles.
1. Capital is paramount: Prioritize safety; it is better to miss out than to take risks. Ignoring the risks of ambition will ultimately backfire on all returns.
2. Avoid greed for stability: Give up the fantasy of getting rich overnight; accumulating small profits is better than high-stakes gambling. Restraining desires allows you to seize real opportunities.
3. Diversify to avoid risks: Use asset combinations to spread risk and keep over 20% in cash. During market reversals, liquidity is your lifeline.
4. Strictly adhere to discipline: Stay away from currencies in a downward trend, refuse to chase highs and sell lows. Impulsive trading will only cost you 'tuition' in the market.
5. Have a method for entering and exiting: build positions gradually during sideways trends, and decisively take profits when targets are reached. Do not be greedy or overly attached to battles; only then can you see the truth.
6. Respect the risks: There is no end to the money in the market, but your balance may go to zero. Knowing when to take profits is the key to laughing until the end.
7. Decisive stop-loss: Cut losses in a timely manner when fundamentals deteriorate. Hesitation can turn small losses into deep abysses. Preserving capital is essential for the future.
8. Go with the flow: Look at weekly charts for long-term, monthly charts for ultra-long-term. When the trend reverses, take profits timely without resisting.
9. Beware of extremes: reversals often occur after drastic rises and falls. Always remain clear-headed about 'irrational exuberance'.
10. Better to have less than more: 90% of the market is noise. Learn to stay in cash and wait; missing out is not regrettable; making mistakes can be fatal.
11. Patience wins: Instead of blindly looking for opportunities, it is better to wait for trends to clarify. Top trading wins by waiting.
12. Know when to stop: Set profit targets and take a break promptly upon reaching them. Maintaining rationality is more important than pursuing extremes.
13. Stop-loss is a responsibility: Stop-loss is a bottom line, while profits depend on the market. Don’t mistake luck for skill; luck can ruin plans.
14. Time compounding: Frequent trading depletes capital. Sticking to trends and enduring loneliness is the key to maintaining prosperity.
15. Unity of knowledge and action: No matter how perfect the strategy, without execution capability it is mere talk. Use discipline to combat the inner demons and let rationality lead trading.
These rules encapsulate countless painful lessons. Only by embedding the rules deep within can one become a true survivor and victor amidst the turbulent waves of the crypto space.
Iron rules of crypto trading:
First, for those currencies with complex situations that you cannot clearly see, do not rashly enter. Pick the softest persimmon; trading cryptocurrencies is the same.
Second, do not invest all your money in the same currency at once, even if you are very optimistic about it, and even if you prove later that you were right, do not buy it all at once. Because abnormal situations change rapidly, and no one knows what will happen tomorrow.
Third, if you mistakenly buy a currency in a downward trajectory, you must quickly sell to avoid further losses.
Fourth, if the currency you bought has not yet incurred losses but has entered a downward trajectory, you should quickly exit and observe.
Fifth, it is advisable to pay less attention to currencies that are not in an upward trajectory. Regardless of what happens in the future, do not accompany the main force to build positions. Retail investors do not have time to accompany them.
Sixth, do not fantasize about making money while constantly trading short-term, entering and exiting every day. Frequent trading might give you a thrill but will cost you a lot of money; the only benefactor will be the exchange. You won't have that high level of skill; you are not the market maker. Do not buy too many currencies; it’s best not to exceed 10. You do not have the energy to monitor all of them. It’s like wanting to marry five wives; even if you are fit, you cannot satisfy them all. The story of Wei Xiaobao only happens in novels.
Seventh, just because this currency is very cheap and has dropped a lot, that is not a reason for you to buy it; it is never a reason!! It may become even cheaper!
Eighth, this currency is already very expensive and has risen a lot, this is not a reason for you to refuse to buy or sell. It may still rise higher!
Advice.
1. Do not easily throw away strong coins; prioritize strong coins, taking half measures, and invest in both trending and strong coins, balancing investment and speculation.
2. The most important quality for traders is adaptability in the market.
3. Qualitative analysis must be done well. Qualitative analysis on a large cycle, weekly chart for selecting currencies, monthly chart for appraisals, and daily chart for tracking.
4. Follow the rules strictly; use Bollinger Bands or moving averages that you find feasible to view the market situation.
5. Ability is not taught; it relies on technical proficiency, repeating successful experiences, and making profit a habit. Earning regularly is more important than making a big profit.
As someone who has struggled in the crypto space, I have summarized 12 iron rules of trading, each one a painful lesson; reading this could save you 100,000!
1. East-West time difference: Stay up late to monitor the crypto market which is primarily concentrated in European and American time (Beijing time 21:30-7:30), and significant rises happen in the early morning! So, do you want to make money? Staying up late is a must! Sleep at 20:00, wake up at 4:00 to monitor the market; that’s the schedule of a qualified trader.
2. Don’t panic during day-time drops: Is it a big drop during the day while foreigners are pumping the market at night? Don’t be afraid! At 21:30, when foreigners jump in, they will pull it back in no time! Remember: daytime drops are buying opportunities; never chase highs during daytime rises, as they will likely drop back at night.
3. The deeper the pin, the stronger the signal: The candlestick pin (long upper and lower shadows) is a common tactic of the market makers; the deeper it goes, the stronger the reverse signal!
After a pin, it is often the best time to buy or sell; don't let market makers trick you out!
4. News landing is negative: Before major meetings or favorable news, prices will definitely rise, but once the news lands, they will immediately drop back! So, plan ahead; when the news comes out, run quickly and don't be greedy!
5. Heavy positions will lead to liquidation; light positions are the way to go: Holding heavy positions? Congratulations, you are already on the liquidation list of the exchange! Market makers specifically target heavy position users, pulling and crashing, causing you to be liquidated in no time! Therefore, light and diversified positions are the way to survive!
6. After stop-loss, the price often drops; after taking profit, it often rises: After a short position stops out, the price drops, and after a profit-taking, the price rises. Market makers do not want you to make money! Therefore, be cautious with your stop-loss and take profits in batches; don’t let market makers lead you by the nose!
7. Just a little bit away from breaking even: Stop dreaming: will you break even soon? The rebound suddenly stops! How could the market makers let you escape easily? So, when close to breaking even, reduce your position appropriately; don’t be greedy!
8. Excitement = waterfall warning: When you are overly excited, the waterfall is about to come! Market makers use your emotions to harvest you; staying calm is the way to go!
9. When you have no money, the whole circle is full of opportunities: When you are broke, every currency is rising, and FOMO emotions are high! But remember, 80% of the market is manipulated; do not easily enter; patience in waiting makes you a winner!
How can one survive long-term in the crypto space? To survive and succeed in the crypto space for a long time,
You can follow these key strategies:
1. Risk management.
Invest using spare money, avoid using high leverage or loans.
Set a stop-loss point; once the preset loss limit is reached, sell decisively to avoid further losses.
2. Investment strategies.
Diversify investments: Do not invest all funds in one project; instead, spread investments across different currencies and projects to reduce risk. Hold long-term: For quality projects, maintain a longer holding period to utilize the compounding effect for wealth growth. Sell at the right time: When significant negative news appears at market highs, it may be a good time to sell.
3. Information acquisition and processing.
Establish your own information sources such as CoinMarketCap+, Defllama+, etc., to obtain accurate market data.
Learn to discern the authenticity of information to avoid being misled by false information.
4. Psychological adjustment.
Stay calm and do not be influenced by short-term market fluctuations.
Set reasonable expectations to avoid over-trading and frequent operations.
5. Continuous learning.
Regularly learn about blockchain technology and digital currency knowledge, stay in sync with industry developments, participate in community discussions, and exchange experiences with other investors to broaden your horizons.
6. Balance life and investment.
Ensure that investment activities do not interfere with your daily life and health.
Maintain physical and mental health to better cope with challenges in the investment process.
Trading cryptocurrencies is akin to life; when you grasp life, you also grasp the crypto space. The truth is simple: knowing and acting in unity allows you to navigate smoothly and remain undefeated!
(If you are still underwater and cannot see the market trend, buying when bullish and selling when bearish, follow my homepage for tips; while providing 'fish', also share 'fishing' techniques to enhance your operations and become the sharpest blade in the market!)
