Summary of the premiere of 'Binance Chinese Cryptocurrency Radio'

Yesterday, I listened to the premiere of the 'Binance Chinese Cryptocurrency Radio' and took notes. @butaidongjiaoyi I don't understand the teacher, it's all practical content. The original text was long, and after a few hours of summarizing, I condensed it into an overview.

The live broadcast covered 18 questions, encompassing multiple aspects such as technology, market, emotions, examples, tools, etc., all of which are practical!!! I hope it can help everyone trade better on Binance @binancezh.

The host is @sisibinance Teacher Sisi. I want to ask if users who focused on listening to the broadcast and taking notes missed the red envelope can have it reissued.

Question

Why choose to trade on Binance?

1. Binance has a large trading volume and is safe and reliable: Binance accounts for over 50% of the entire cryptocurrency market's trading volume, with the strongest liquidity and secure capital.

2. Additionally, Binance's UI/UX is very comfortable to use.

Personal interpretation: This is indeed the case. A few days ago, I also opened a short position on a Gamefi project. Currently, everyone's first choice for futures/spot is Binance. Only when there is no Binance do they choose others. The trading depth, usability, security, and Binance's longstanding reputation are unique.

Question

How can everyone replicate ETH's amazing operation? A single coin earned $5 million.

Ignore market conditions and noise filtering, combine ETF capital inflow, Grayscale ETF application, June SEC regulatory expectations, and technical analysis, and the correlation of Bitcoin's movements to comprehensively judge whether it is worth participating and at what levels.

The most important thing is: If everyone sees the direction clearly, then why do only a few people make money? This is my reason for betting on direction.

Personal interpretation: Judging and operating a trade is not a one-off decision; it depends on many factors, such as technical aspects, correlation with BTC, ETF news, and independent judgment.

This actually reflects: No matter what kind of trading you do, it must be the result of comprehensive judgment. Don't make impulsive decisions based on a single point.

Multi-faceted independent judgments can improve trading win rates.

Question

In the Binance futures trading competition, is there any adjustment in trading style?

I won't trade just for the competition; I trade for opportunities and profits. The ultimate goal of all investment contracts is to make money.

Personal interpretation: The key point is: trading is done as part of the competition, not for the sake of competition.

The purpose of futures and leverage is to make money, not anything else.

Question

How to cultivate trading style and system?

The core lies in practical experience, discovering one's own profit formula and trading scenarios.

My personal trading style: I lean towards research and ample sources of information, initially opening positions conservatively. However, once positions are opened, I make decisive actions and settle according to the strategy's goals.

Personal interpretation: I strongly agree that practice is the only criterion for testing truth. No matter what kind of trading idea it is, as long as the result proves it to be correct, it is a good idea.

Question

Long-term and short-term strategies.

Long-term dollar-cost averaging in Bitcoin is a relatively wise long-term investment strategy.

The second long-term strategy is a 3-4 year economic cycle, making some one-sided market bets during the bull-bear transitions.

Note: I will not short Bitcoin during the transition from bull to bear, but I will choose to short Ethereum or Solana.

Similarly, during the transition from bear to bull, if there are unique opportunities like financial crises, it is also possible to consider bottom fishing.

Short-term strategy: Futures leverage is one way. It requires everyone to have strong discipline and learn to go against human nature.

Personal interpretation: In terms of long-term and short-term strategies, I suggest directly memorizing and copying.

Question

How to do risk control?

1. In normal circumstances: I won't hold Bitcoin or Ethereum for more than a week, and I would choose leverage of 5-10 times. If it’s for weekly or monthly levels, leverage won't exceed 3 times.

The leverage for short-term altcoin trades is generally 3-5 times.

2. My trading style is relatively conservative, with risk control as the priority. I need to learn to restrain myself and not engage in high-leverage trades.

3. How to choose leverage: It depends on the volatility of the coin. If an altcoin has large daily fluctuations, then use at most 3 times leverage.

If a coin is in a sideways trend for half a year with small fluctuations, use 3-5 times or even 10 times leverage.

Personal interpretation: I think indeed assets are different, leverage is different, mindset is different, and gambling tendencies are different.

I personally also prefer this low-leverage, low-risk way of earning; the concept of 'slow is fast' is vividly embodied here.

High leverage does earn quickly and is thrilling, but developing a gambler's mentality is hard to resist, I feel it's like 'addiction'.

The only way to avoid addiction is to avoid contact.

Question

What strategies are suitable for both large and small funds?

1. There are not only futures trading as a way to make money; you can look for opportunities on-chain.

2. If you have grand ambitions, start with on-chain opportunities, find the right early entry points, and hold your positions.

3. For futures trading, remember to divide your positions into 4-10 parts, with each part's profit and loss being within acceptable limits.

Personal interpretation: For many people, futures are not the only way to make money; wealth can also be quickly accumulated on-chain, such as during the Meme and BTC ecosystem waves. I personally resonate with this.

Although I didn't earn much during these two waves, it was indeed quite thrilling. If there are ways to make big money with small funds, everyone can look at on-chain or primary markets (like some IDOs); I remember the Portal and BIO launched on Binance had dozens or even hundreds of times returns during the public offerings.

Question

How to spot pullbacks to capitalize on pullback opportunities?

1. To catch pullbacks, you need to learn basic technical indicators, such as moving averages, KDJ, MACD, etc.

2. Altcoin indicators may fail: Technical indicators for major coins like Bitcoin are relatively effective. However, altcoin indicators may fail, and it’s more important to focus on the main force's direction, chip distribution, and promotional rhythm.

Personal interpretation: Learning technical indicators is fundamental. Combining contrarian psychology and understanding the logic of the failure of altcoin indicators can provide opportunities for profit.

Question

How to use technical indicators, information, and logic?

1. Focus on the current price for orders and seize opportunities to catch black swans.

2. Use different indicators for different timeframes: Look at 1 minute, 5 minutes for ultra-short trades; for larger swings, look at daily, weekly, etc.

3. Choose key entry points, such as support levels, resistance levels, or the upper or lower Bollinger Bands.

4. Pay attention to momentum, which reflects the strength of token movements. Market trends typically follow the sequence of US stocks → Bitcoin → altcoins. Judging momentum strength must rely on continuous observation and practice, and momentum is also influenced by technical indicators.

Personal interpretation: Don't play anymore, I am learning in practice, memorizing it, and everyone is welcome to check once I have memorized it.

Question

Do you support using virtual accounts for trading?

1. If you don't have much capital at the exchange, you can use virtual accounts to familiarize yourself with trading and accumulate experience.

2. If you have some capital, I recommend real trading. Real trading can truly reflect market conditions.

I suggest everyone can open a real account with a small amount of funds (like a EUR account) to test, learning while doing is more reliable.

Personal interpretation: Following the reasoning of the previous user, virtual accounts are not as good as real accounts. I have encountered cases where I won all battles in virtual accounts but collapsed in real trading. After all, real trading involves real funds, while virtual accounts are all fake, which can significantly reduce psychological pressure.

Question

Personal interpretation: This psychological sacrifice approach is something I learned for the first time, it's amazing, creating one's psychological experience through deliberate liquidation.

I feel like I don't understand the teacher has also studied psychology, knowing how to hone one's mindset.

Question

Personal interpretation: I deeply resonate with this. I remember when I first entered the market, I was also a broke student. Operating in the secondary market through small loans indeed created a lot of pressure. Later, I repaid everything.

If you have no money, then play with $200 or $100. Making money at that stage is not important; ensuring living expenses is very important!

Learning and gradually accumulating capital is the most important. Always remember: slow is fast, and thick accumulation leads to thin output.

Community Q&A

Are there any promising altcoins worth bottom-fishing now?

1. The rise and fall of new altcoins are only related to 'attention economics.' Be cautious of high-control projects when trading to avoid blindly chasing highs.

2. Two suggestions for altcoin trading: After altcoins double, be sure to withdraw your principal; follow KOLs who are good at altcoins and leverage their information for filtering.

Personal interpretation: A few days ago, Shen Yu said very clearly that the general altcoin bull market no longer exists. Projects that can gain market recognition through innovation will perform well in the secondary market (like Kaito), while the vast majority of altcoins are just one-off operations.

Interest rate cuts are beneficial for the market; however, the positive effects are long-term, and after implementation, the short-term may be negative, which needs attention.

Community Q&A

How to choose promising altcoins?

1. The community is the core of altcoins: The success or failure of altcoins (Meme coins) depends on the community.

2. Choosing the right timing for entry is crucial: Either get insider information or rely on luck. There are no fixed standards for timing.

3. Manage positions well in altcoin trading: Withdraw principal after doubling, and strive for future gains.

Community Q&A

How to set reasonable stop losses?

1. The logic behind altcoins rising is due to narratives and someone pushing from behind.

2. Before buying, clarify the reasons; first figure out why to enter at this point.

3. Support your holding with buying reasons.

Personal interpretation: The teacher did not answer which altcoins to focus on but taught everyone to think about why to buy, how long to hold, and why it would rise. The underlying lifting logic and holding logic are the most important contents.

Teaching someone to fish is better than giving them fish; learning how to find profitable altcoins is more important than telling everyone a few that can make money.

Community Q&A

How to control take profits and stop losses?

1. Catch key levels to enter the market; if you miss it, it's better to wait.

2. Enter the long-term trading zone of the token.

3. If operating with full margin, it is recommended to take out some profits after doubling or having some profits and setting stop losses at the original price.

If you have no idea how to select entry points, then follow the trend when in doubt, supplementing with technical indicators, and persist in learning and validating.

Personal interpretation: I am already working hard on memorizing this. All these points are valuable information: double the capital; enter the trading zone; set stop losses if it breaks; only catch key levels.

Learning to follow trends, combining technical indicators, and persisting in learning are the best ways to control take profits and stop losses.

Community Q&A

What should we mainly look at on-chain?

1. First look at the Meme narratives on-chain; the narrative determines the upward trend.

2. Then look at community consensus: Community activity and team execution determine the potential of the token.

3. Three factors to consider: entry position and market cap judgment; before entry, check if the token's market cap is reasonable.

4. Follow reliable KOLs, but remember to make your own judgments to reduce risk.

I don't understand what the teacher will do:
1. Real trading strategies will be publicly disclosed: I will announce all my real trading operations, and when playing on-chain projects in the future, I will bring everyone along and disclose trading records.

2. The wallet will be completely transparent: My wallet will be fully public, with transparent operations that everyone can view at any time.

Is it necessary to stick to the current strategy of not making a profit or loss?

1. Quantitative trading is most suitable for volatile markets, with potential returns of up to 100%. However, it can easily incur losses during one-sided rises or falls.

2. Everyone can try using the trading platform's official AI robot, which feels quite effective.

Personal interpretation: If you don’t know how to create quantitative strategies and bots, you can directly use Binance's quantitative strategy robot.

Doing quantitative strategies in volatile markets may be quite profitable, with the highest annualized returns possibly exceeding 100%. The larger the funds, the more applicable it is.