When I first started trading cryptocurrencies, I earned about 4 million with an initial capital of 50,000. I graduated from college without ever having a job.
I've been playing in Kunming and Dali, not buying a house or a car. Monthly expenses are 3,500.
How I made money:
1. Starting capital of 50,000, doing projects in college, affiliate marketing, fake orders, delivery, filling in for apps, various small tasks, accumulated 50,000 yuan.
2. Entering the cryptocurrency market, I felt BTC was too expensive, so I just played with ETH, which has leverage, and then there are altcoin spot trades. Choose coins and manage positions well. Just executing this simple thought, I had minor losses when the market was bad, but when the market turned, I made significant profits.
⛅ Why enter the circle.
If you want to change your destiny, you must try the cryptocurrency market. If you can't make money in this circle, ordinary people will have no chance in their lifetime.
I share my cryptocurrency trading thoughts with everyone:
Everyone has different expectations in the cryptocurrency market; how to reasonably plan limited funds is very important, especially when buying coins!!! If you have two equal amounts of capital, one invested in BTC with a 30% profit, and the other in ETH with a 30% loss.
If you were to operate, what would you do? (Always wrong either option)
A. Hold both without action.
B. Sell BTC to buy ETH.
C. Sell ETH to buy BTC.
D. Clear both positions.
According to probability theory, 80% of normal people would choose to sell Bitcoin to buy Ethereum.
They might feel scared when Bitcoin rises too much; if they cash out, it gives them peace of mind. The lower Ethereum drops, the lower the risk; they fantasize that selling BTC could save ETH, and both could be profitable.
In fact, there is a terrifying phenomenon in the investment market where the strong get stronger and the weak get weaker: Most people find that selling BTC will continue to rise, while trapped ETH will keep falling; if they realize they might as well hold on, at least one of them is profitable.
Compared to B. selling BTC to buy ETH, C. selling ETH to buy BTC appears extremely counterintuitive, making most people feel very uncomfortable!
In fact, this outcome is often the best; this 'always wrong either option' is the choice paradox that 80% of investors will encounter.
❤️ Under the overall score, the returns are C > A > D > B.
If you encounter two coins next time and there is a situation where one rises as the other falls, be a bit bolder and try to operate against your instinct of safety; the less reliable it seems, the more you should try.
Remember, investment is always counterintuitive; you must go against the majority.
How to avoid the traps and risks of cryptocurrency investments?
The cryptocurrency market is like a maze filled with temptation and traps, attracting countless people to enter one after another.
1. Strategy formulation before investment: Risk management, fund management, position management.
The cryptocurrency market is a highly volatile market filled with uncertainty and risks; instability has become the norm. Many people's initial mistake lies in not establishing awareness of risk management, fund management, and position management, and having no respect for the market, leading to rapid losses.
Effective strategy formulation before investment is like a rigorous battle strategy before ancient wars; throughout history, great victories in wars have invariably relied on pre-battle strategic planning.
Establishing effective risk management, fund management, and position management strategies allows one to always be able to attack and defend, remaining invincible.
2. Refuse to blindly follow the trend; don’t trade based on rumors.
Cryptocurrency news is flying around every day, and most of it is designed to confuse retail investors, leading them step by step into the dangerous traps set by the big players, becoming lambs to be slaughtered.
Investing must be based on your independent analysis and calm decision-making; refuse to blindly follow the crowd or believe in rumors.
3. Persist in long-term investment; do not pursue quick riches with a short-term mindset.
The myth of sudden wealth in the cryptocurrency market has led many investors to adopt a short-term mindset pursuing quick riches, thus neglecting long-term steady investment. Many cases reflect attempts to achieve overnight wealth through short-term investments, only to fall into deep losses and begin to doubt life.
Investment is a lifelong endeavor; during the process, it is important to establish the correct investment concepts and persist in long-term investment to achieve steady growth of wealth.
The above three points are a serious summary, hoping to help investors who are currently confused in the cryptocurrency market and avoid repeating the mistakes of many others.
There are two ways to learn:
First: Direct acquisition, through one's own experiences, summarize experiences and gain abilities.
Second: Indirect acquisition, summarizing experiences through others and applying what you've learned to transform it into your own ability.
One, the trilogy of successful trading.
Insight into trends: In the digital currency market, trends are the key to determining victory or defeat. By looking at 4-hour, daily, and weekly charts, we can clearly capture the market's upward, sideways, or downward trends. Remember, go long when the market is rising, short when it is falling, and observe when it is sideways; this is the first step in stable trading.
Finding key positions: The market is like a bouncing ball; each jump has a starting and landing point. Our goal is to enter at the starting point and exit at the landing point, and accurately finding these key positions is key to achieving profitability. These key positions are often the main support and resistance levels in the market.
Capture entry signals: After determining the trend and key positions in the large cycle, we need to look for trading signals in the small cycle to accurately seize the entry timing. Everyone has different trading strategies, but no matter what strategy, it needs to be quickly formulated and strictly executed.
Two, a complete trading strategy; a successful trader must have a complete trading strategy. This includes:
Targets: Clearly identify the objects of trading.
Position: Reasonably allocate funds and avoid heavy positions.
Direction: Accurately judge the bullish or bearish trend of the market.
Entry point: Look for entry signals near key positions.
Stop loss: Set a reasonable stop loss point and act promptly to control risks.
Take profit: After reaching the profit target, decisively close the position to lock in profits.
Countermeasures: Plans to respond to sudden market situations.
Follow-up: Plans for subsequent operations after trading.
Three, insights and discipline in trading cryptocurrencies.
Do not chase highs: Always remain calm and do not blindly chase rising prices or sell at falling prices.
Buying at the right moment: Only coins bought at the right price are good coins; patiently wait for significant buying opportunities to appear.
Mindset determines everything: Overcoming greed and fear and maintaining a steady mindset is key to successful trading.
Focus on market signals: Don't have emotions towards any cryptocurrency or price points; only pay attention to the market's signals.
Summarize mistakes: Every mistake is an opportunity for growth; summarize and improve in a timely manner.
Control desires: Eagerness for quick results is a major taboo in trading; manage your greed and desires well.
Long-term strategy: Trading tests the long-term profitability ability; formulate and execute long-term effective trading strategies.
Patiently hold: Good coins need to be nurtured; patiently holding them will yield rich returns.
Follow the market rhythm: Listen to the rhythm of the market and dance with it to maneuver smoothly in the market.
The power of compound interest: Remember the miracle of compound interest; as long as you maintain a good mindset and skills, compound interest is inevitable.
The secret to a tenfold return: efficient methods for trading cryptocurrencies that can help you easily double your investment!
Master low-price chips, invest steadily, and do not be swayed by market noise. When investing in cryptocurrencies, one must first realize that low-price chips are hard to come by, and they should never be easily swayed by market fluctuations. Stay firm, remain calm, and prevent yourself from being disturbed by strategies like market manipulation, dumping, etc. Chasing highs and selling lows or going all-in are often major taboos in investment. If the overall market trend is good, gradually building positions during a downturn is more effective in controlling risks than chasing highs, and it also reduces costs and increases profit margins. The key lies in reasonably allocating returns to maximize the vitality of funds, rather than blindly increasing positions.
When the market rises rapidly, first lock in some profits promptly, seeking stability while aiming for victory; when the market falls sharply, don’t recklessly withdraw investments; maintain the main positions and stabilize your mindset. Avoid speculation and shortcuts, don't be greedy or hasty, and do not fear market fluctuations, always maintain a steady mindset to avoid operational mistakes. Early low-cost layouts or private placements of low-priced coins stem from estimates of market experience and future potential, while battles in the secondary market rely more on technical and informational analysis. Reasonably distinguish between different stages, ensuring clear logic and direction in every step.
Building positions and unloading: Gradually advancing, controlling risks and returns.
Cryptocurrency investment is a complete process from building positions to unloading, where layered and segmented operations are especially critical. Gradually widen the price segments to effectively control risk and profit ratio points, forming more flexible operational space. Investors should also familiarize themselves with the interconnected effects, observing the trends of multiple cryptocurrencies. Each cryptocurrency's performance in the market is interrelated; although they seem independent on the surface, they actually influence each other. Reasonably allocate the positions of hot coins and valuable coins, balancing investment risks and profit returns. Being overly conservative may miss opportunities, while being overly aggressive may face high risks. Valuable coins tend to be more stable, while hot coins are more volatile, with significant fluctuations, making proper allocation crucial.
"How to reduce losses in the cryptocurrency market? The practical experience of seasoned investors is revealed!"
How I reduced losses in the cryptocurrency market?
I've been in the cryptocurrency market for many years, considering myself an old hand, having experienced various major events like 312, 519, black swans, etc., and have fallen into many pitfalls and faced numerous liquidations, but now I have made a full recovery!
Most fans in the cryptocurrency market are in a state of loss; in fact, losses are normal in this market. The key is to adjust your mindset. The biggest thing this market lacks is opportunities to make money.
To make money in the cryptocurrency market, just remember two things:
First trick: Ambush the growth space of valuable coins.
How to judge whether a token is a valuable coin? It must be viewed from multiple dimensions.
Check the sector: Is it a hot track?
Check the timing of the coin: Is it a new coin or an old one?
Check market cap: The market cap should not be too large; below 1 billion is best for more doubling opportunities.
Look for comparable benchmarks: Are there any popular projects to benchmark against? Observe the pump: Is there capital pushing from behind?
Watch the story: Can the hype from project parties convince retail investors? For example, one that aims to solve industry pain points.
Check the exchange: Projects reviewed by major platforms are essentially screened for risks.
Check the planning: Is there a clear roadmap?
Check the feasibility: Just having a vision isn’t enough; there must be practical application scenarios.
Check the team background: Investigate whether the founder is an industry veteran, not just a recent graduate.
Second trick: Follow the right people.
In the cryptocurrency market, information is money. Remember three sentences:
Better to follow the big players than to think for yourself blindly: The experience and information of big players are often far superior to yours.
Important reminder:
Important reminder: don't be greedy, take profits: no matter how good the project is, after a tenfold increase, you should consider withdrawing.
Newcomers should avoid contracts: Honestly buy spot, at least you won't lose everything overnight.
Only what you have earned is money: The numbers on the account are just numbers; don’t take them too seriously.
Capital management and risk prevention: Balance your mindset.
In cryptocurrency investments, maintaining account liquidity, that is, 'having coins in the market, money in the account, and cash in your pocket,' is an important safeguard against market uncertainty. Never go all-in; allocate funds reasonably and master risk management strategies. This not only stabilizes the investment mindset but also effectively controls risks. Use spare money for investment rather than borrowed capital; this is the foundation of investment. Master basic operational skills and thought processes, develop the habit of recording and summarizing, and treat the highs and lows of each operation as valuable experiences, gradually cultivating the ability to filter information and make decisions.
Wise people will choose the second method, summarizing and transforming others' experiences and mistakes into their own abilities. This way, they don't have to experience the painful price of making the same mistakes themselves, thus reducing a significant amount of money and time lost on trial and error.
We can summarize and transform the stories of most people losing money in the cryptocurrency market into our own investment experience, achieving our original accumulation step by step through continuous accumulation and sedimentation, realizing steady growth of wealth.
Today, I am sharing all the lessons learned over the years, hoping to provide you with some inspiration.
First of all, money management is very important. I divide my funds into several parts and only invest a small portion each time. This way, even if I make a wrong judgment, I won't suffer significant losses.
Secondly, set the stop loss point well; once it reaches, decisively exit without hesitation.
Also, go with the trend. During a downturn, a rebound may be a trap; during an upturn, a pullback may be a good buying opportunity. Follow the market, don’t go against it.
Be wary of cryptocurrencies that surge in the short term. They carry high risks, and if you miss the best buying opportunity, you may find yourself stuck at high prices. Instead, look for those that steadily rise and have great potential; although they won't make you rich overnight, they are stable.
During trading, technical indicators should also be utilized. MACD, volume-price relationships, etc., are what I commonly use. They help me better grasp market rhythms and find the best entry and exit points.
Persist in reviewing, summarize and reflect on trading every day, continuously optimize strategies. Don't follow the crowd in cryptocurrency trading; find your own suitable method to stabilize your footing in the market.
Trading is both a big task and a meticulous task.
For example: pursuing absolute highs and lows is excessive. Why not be vague yet precise? The key is knowing to set aside meaningless problems.
When you win, keep quiet; when you lose, keep quiet. Winning and showing off is the beginning of your loss. A happy neighbor is pain; don’t wake it. Moreover, this mindset will make you focus on profits and losses rather than the system. The key is not how much you won or lost, but how much you have grown. Virtue (the trading system) carries things and nourishes silently, and wealth will naturally come. Life is also speculation; stay cautious and often reflect on your past.
Investment is not an industry where diligence is rewarded; in fact, it is the opposite.
Remember, at any time, your actions could be wrong. But paradoxically, speculation is an absolute personal heroic endeavor. You must persist in yourself while also being able to let go of yourself and actively admit mistakes. How to balance this?
The road is difficult, the road is difficult; it is not in the mountains, nor in the water, but in the repeated fluctuations of the market.
Profit is finding a sliver of possibility in the impossible; it is being calm between life and death. Therefore, speculation is life; it is all about giving and taking. Knowing when to stop is the path to gain.
These insights are all derived from my ten years of experience in cryptocurrency trading, a profound understanding gained through weathering storms. I hope they can illuminate your path forward. Produced by Qing Tian, quality guaranteed!
