Mu Qing, after more than ten years in the crypto world, offers some experience and warnings for newcomers: worth collecting and studying repeatedly!
1. Platform Selection
2. Don't trade contracts, but you need to understand them.
What are contracts? Contracts are akin to buying and selling in traditional financial markets, but in the virtual currency market, the leverage can go up to 125x... (excessively high). When we say don't trade contracts, we're advising against high-leverage contracts because the risks are enormous. If the leverage is set too high, no matter who you are, you'll end up giving your money to the dealer. But why should you understand contracts? I mean, you need to know the basic contract knowledge to prepare for the future bull market. I oppose high leverage, but I support you in learning about low-leverage options. For instance, when the bull market comes, you could open a three-times or five-times contract; isn't that a highly cost-effective way to accumulate wealth? If you, as a crypto enthusiast, don't understand how contracts work, you're not qualified.
3. Don't chase highs and sell lows. Chasing highs and selling lows is a big taboo in any market. When you see a rise, you want to chase it; when you see a fall, you want to cut losses. In the crypto world, the price movements can be huge, so remember, don't chase highs and sell lows. If a coin skyrockets, just observe; 80% of the time, you're just taking over someone else's position (only 20% can profit if you judge correctly). If a coin crashes and you happen to be holding it, set a stop-loss. If it falls below your stop-loss, just let it go; don’t cut losses after a two-point drop. If you believe in the coin, set a stop-loss you can tolerate. Unless it's a stop-loss, don’t cut losses yourself, and don’t check the market after taking any profit or stop-loss; it will affect your mindset.
4. Don't heavily invest or gamble; don't use money that affects your livelihood to enter this circle. There are two outcomes to heavy investment and gambling: the first is bankruptcy and debt; the second is reaching the peak of life (think about whether you are destined for that; all those around me who gambled have ended up with losses). Moreover, only invest spare money; never let it affect your ability to eat. If you can't afford meals and come to gamble, what's the difference from pursuing a PhD?
5. Fraud Prevention Tips: There are a lot of scammers in the crypto world; here are some common examples:
1. If someone private messages you on Telegram, just block them; they're 100% scammers.
2. Private placements in the primary market without background checks are 95% likely to be scams or failed projects.
3. Pi Yao coins refer to those that can be bought but not sold. Whenever you trade with primary coins, remember to check if the contract address is safe.
4. Those who want to take you to trade contracts are just looking to profit from your losses. They want you to follow their trades on their small exchange platform. Just scold them directly.
5. Avoid fishing links; never authorize unknown links; your wallet could be hacked.
6. Track selection is very important; don't just focus on skill trees. There are many ways to play in the crypto world: spot trading, DeFi, meme coins, chain games, NFTs, new listings, airdrops, staking, and so on. But please remember, you are not here to just dabble in skill trees; you are here to make money. You don't need to participate in every track; this will definitely lead to more losses than gains. In the crypto world, the money is made by deep researchers in each track, not by dabblers like you. Personally, I tried to dabble in everything and later realized it was a losing game.
7. Don't try to make mistakes on your own; listen to others and let go of your prejudices. The cost of making mistakes on your own is too high; in this circle, one wrong step can lead to total loss. Listen to others' opinions, set aside your biases, and don't look down on anything. For example, regarding BRC20, I honestly looked down on those playing with it. When I first saw this mechanism in March, I thought it was just a pure scheme. I didn't participate initially, but later this thing broke my understanding and made me pay the price for my biases. I missed out on freedom once again. So when you enter this circle, you must come with a learning mindset, let go of prejudices, and learn gradually.
8. The most important rule in the crypto world: Double your capital. Regardless of which track you participate in, be it spot trading, contracts, or meme coins, remember one iron rule: you must withdraw your capital once you double it!! No one can eat both the head and tail of a fish! You can hold onto your spot trades, but for meme coins with high volatility, you must withdraw your capital once doubled! Because the leader has turned floating profits into losses more than once! Don't worry about whether you'll earn less; not losing is earning! Withdraw your principal when you double your investment! Let the profits roll! It sounds simple, but it's particularly difficult to execute; human nature is like this~ So everyone should weigh it carefully~ (The same goes for contracts! When you double, close half of your position).
My method for trading cryptocurrencies is very simple and practical; I reached an eight-figure income in just one year. I only trade one pattern, entering the market only when the opportunity is right. I don’t trade without a pattern and have maintained a win rate of over 90% for five years!
Most of the time, I just fish and work out. From entering the crypto world with 50,000 to making 10 million, then going into debt of 8 million, then making 20 million, and now achieving financial freedom. In the past two years, from May 24, 2022, to November 10, 2024, in less than two years, starting with less than 500,000, I achieved a return rate of 1,006,626%, making over 45 million. Here are some practical and useful suggestions for newcomers to the crypto world!
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