First, do not borrow money to trade cryptocurrencies, do not borrow money to trade cryptocurrencies, do not borrow money to trade cryptocurrencies.
If you borrow money to trade cryptocurrencies, it shows you have a gambler's mindset, and in the end, you will have nothing.
Second, do not go all-in with leverage, do not go all-in with leverage, do not go all-in with leverage.
Leverage +, all-in, gambler's mindset—by the end, you will have nothing.
Third, do not trade on small platforms; most small platforms are internal markets.
The internal market is just pulling a candlestick; your money has not entered the market but rather the account of that shell company.
The rules of the game itself dictate that most outcomes of leveraging will lead to zero; the capital behind enjoys watching a group of retail investors go all-in because the next moment, the money will fall into their pockets!
What if? What if going all-in wins?
This market is a contest of wits between retail investors and the large players; principles and patience are required to see the game. The gains come at the expense of other retail investors, and it is not a fair game.
If you happen to hit it big, even scarier, you'll think you're a god, and once there's a first time, there will be countless more. You will eventually lose the money you gained.
As for those myths of getting rich quickly, just listen to them; as a certain expert said, this world is a makeshift stage, where do so many myths come from!
When it consolidates and suddenly drops, it must be a small drop; after a drop, it must rise. When it consolidates and suddenly rises, it must be a small rise; after a rise, it must drop.
Consolidation is a state of accumulating chips at the bottom. There is a question that hasn’t been mentioned before: why do large players prefer to accumulate during a consolidation phase?
When the large players begin to accumulate at the bottom, due to continuous buying of chips, market purchasing power increases, and the supply decreases accordingly, making the price rise an inevitable result.
So after the large players enter the market, the price no longer makes new lows; this statement is very important.
So why choose to accumulate chips in a consolidation phase?
When the price is consolidating with little fluctuation, retail investors will automatically exit if they see no gains for a long time, making it easier for them to quietly pick up cheap chips at the bottom.
Even if I tell you these chips are cheap and you can hold them for a year without gains, can you endure it? Very few retail investors can.
The market has some short-term traders or speculative funds; to prevent giving these short-term traders opportunities to speculate, consolidation is the most powerful defensive form.
Consolidation has no huge fluctuations, making it difficult to attract the attention of retail investors; often, by the time you notice, the price has already reached the ceiling.
These are the advantages of consolidation. After a period of consolidation, when the large players have acquired a certain amount of chips, the consolidation pattern will begin to shift to a shaking mode, which involves moving up and down. The goal is to shake off those uncertain chips. Once those uncertain chips are collected, the large players will have reached their collection target, and then comes the rise.
Thus, after consolidation comes shaking; if it shakes downwards, it cannot be a significant drop. If it breaks below the large player's cost price, it is a major incident. Therefore, when it consolidates and suddenly drops, it must be a small drop, aimed at shaking off the uncertain chips.
The opposite is also true.
If it consolidates for a period and suddenly rises, it indicates a signal for shaking and washing the market. If it rises directly without shaking, it does not follow logic (unless it’s speculative funds that shoot and leave). The chips are held by each holder, and relying on the daily natural flow is simply not enough; only shaking can stir the market and speed up the flow of chips, achieving the goal of rapid collection.
Even if there is an upward trend, it should go up while shaking; on one hand, to shake off the following traders, and on the other hand, to sell high and buy low.
Of course, some large players will also use a model of first shaking the market and then consolidating, with the same objective.
Consolidation is meant to quietly collect chips, while shaking is to further collect uncertain chips.
In fact, consolidation and shaking are mutually inclusive; within a range, there are regular fluctuations that also count as consolidation. There can be no absolute consolidation—it's impossible for a line to run perfectly horizontal, so the concept of consolidation is broad.
This is another piece of advice aimed at newcomers in the crypto space (it needs to be etched in your mind).
First: Do not trade while in debt; trading while in debt means you are overdrawing yourself, and this is the most important.
Second: Interact more with veteran traders in the crypto space.
Third: You can spend a little money to join some paid groups; it’s up to you to decide who to choose, as long as you think this blogger is reliable and can teach you something, learn their trading ideas.
Fourth: Do not buy hot coins.
When a cryptocurrency is at its most popular, or when the market is crazily trading a certain coin, it is essentially nearing the end. At this point, if you had held this coin before, you might consider cashing out. If you do not hold this coin, it is best not to enter the market, as there is a 90% chance you will just be picking up the pieces.
Fifth: Do not play on small exchanges; small exchanges are always at risk of running away or cutting off the internet, and all the money inside will be inaccessible.
Sixth: Understand what are low-quality altcoins and mainstream coins. Low-quality altcoins are those traded on-chain, and due to their low market capitalization, they can fluctuate wildly, easily multiplying dozens or even hundreds of times, but the risks are equally high. Mainstream coins are those like Bitcoin, Ethereum, and Solana, which are public chain currencies.
Seventh: Understand what primary and secondary markets are. Coins that you can buy on all exchanges are in the secondary market. The primary market refers to on-chain transactions, such as buying on decentralized exchanges or WEB3 wallets. Newbies are not advised to play in the primary market, as it’s very easy to be scammed with meme coins.
Eighth: Understand what left-side and right-side trading are. Left-side trading: buying below the price when the market is not yet clear, mainly using limit orders. For example, trying to catch a bottom in a downtrend, thinking this position will stop the decline. This method carries relatively high risk. Right-side trading: waiting for the market to show direction, such as when the price starts to rebound or breaks through/breaks down key levels, then entering the market. This is chasing trends; it’s safer, but you may miss out on the initial profits.
Continuous learning is essential; a person cannot earn money beyond their understanding. Even if you earn a lot at first, if your understanding does not keep up, you will quickly lose it back, and it could lead to heavy losses. You must keep learning and enhancing your understanding! I hope every newcomer who just joined the crypto space can take fewer detours. Although you will encounter various setbacks and losses, these are what you need to face in order to grow quickly!
Playing in the crypto space is essentially a contest between retail investors and large players. If you do not have cutting-edge news or firsthand information, you can only get cut! If you want to strategize together and harvest the large players, you can come find me.
There is a saying I very much agree with: the boundaries of knowledge determine the boundaries of wealth; a person can only earn wealth within the limits of their knowledge.
Maintain a good mindset when trading cryptocurrencies; don’t let your blood pressure spike during a downturn, and don’t be overjoyed during a surge; securing profits is crucial.
For those who have limited resources, being pragmatic is the unshakeable way of survival.
