I am 32 this year, started trading cryptocurrencies at 22, and by 2023-2024, my capital reached 8 figures. Now my life involves staying in high-end hotels around 2000 yuan, with luggage and hats possibly featuring cryptocurrency symbols. It’s much more comfortable than the older generation doing real business or 80s entrepreneurs in e-commerce.
I have hardly experienced business disputes, leading to fewer worries.
The biggest point in trading cryptocurrencies is to have a good mindset; skills come second.
My experience sharing:
Learning is fundamental: Understanding blockchain technology, principles of digital currency, and market trends is the prerequisite for investment.
Rational investment: Do not blindly follow the trend; invest according to your own risk tolerance.
Diversify investments: Do not bet all your capital on one project; diversifying investments can reduce risk.
Long-term holding: The cryptocurrency market is highly volatile; long-term holding of quality assets is more likely to yield substantial returns.
Stay calm: Don't be swayed by market emotions; a calm mind is essential for making correct decisions.
The stories of becoming rich in the cryptocurrency space are certainly enviable, but the risks and efforts behind them cannot be ignored.
The core to avoid liquidation in cryptocurrency contracts is: Practical position management strategies in the cryptocurrency space.
Starting with 5000U, rolling to 120,000U is not a dream.
But it requires precise strategies + strict position management.
The following are market-validated practical methods, suitable for short-term/band players.
But the final step's 'mysterious bonus' is key.
Step 1: Capital allocation (How to bet with 5000U?)
Core principle: Do not go all-in, do not gamble your life, roll with compound interest thinking.
3000U (60%) → Low-risk stable trading (BTC/ETH swing)
1000U (20%) → High-odds altcoins (catching hotspots like AI, MEME, RWA)
500U (10%) → Contract hedge (only for extreme market protection)
500U (10%) → Cash reserve (waiting for a crash to buy the dip)
Beginner mistakes**: Going all-in on a certain coin or leveraging full margin to bet on direction.
Step 2: Trading strategy (How to grow your capital?)
1. Main battlefield: BTC/ETH swings (3000U)
Strategy at key support/resistance levels to do swings (e.g., buy when BTC drops to moving average support, sell when it rises to previous high resistance).
Goal: Earn 10-20% per wave, do it 2-3 times a month, rolling with compound interest.
2. High-risk point: High-odds altcoins (1000U)
Strategy: Only play low-market-cap coins with hotspots (e.g., new coin listings, sector rotation).
3. Hedge protection (500U contract)
Usage: When the market experiences extreme conditions (such as before a crash), use 5-10x short positions to hedge and reduce spot losses.
Step 3: Position management (How to avoid liquidation?)
Single trade ≤ 10% of capital (e.g., for a 5000U account, a single order ≤ 500U)
Hard stop loss ≤ 5% (cut loss if it loses 500U, don’t hold the position).
Take profits in batches (take half profit at 20%, hold the remaining half for higher gains).
Review weekly, cut weak coins, keep strong coins.
Key thinking: Cut losses and let profits run, rather than 'take a little profit and hold on to losses.'
Steps for rolling positions:
1. Choose a target: Select a cryptocurrency that you believe will rise in the future.
2. First purchase: Use all your funds to buy this cryptocurrency.
3. Set stop losses: Set a stop loss below your buying price to limit your losses.
4. Monitor the market: Continuously monitor market trends. 5. When prices rise: If prices reach the preset target, use part of the profit to add positions and buy more.
6. Repeat steps 4 and 5: Continue to monitor the market and add positions when prices rise.
The art of rolling positions is not something that can be mastered on a whim. It requires favorable timing, location, and harmony with people to increase the odds.
The following are four golden opportunities for rolling positions:
(1) Breakthrough after long-term consolidation: When the market has been in a sideways state for a long time, and volatility drops to a new low, once the market chooses a direction to break out, consider using rolling positions.
(2) Buying the dip during a bull market: In the wave of a bull market, the market experiences a strong rise, followed by a sudden drop. At this time, consider using rolling positions to capture the opportunity to buy the dip.
(3) Weekly level breakthrough: When the market breaks through key resistance or support levels on the weekly chart, it is like breaking through a strong defense line. At this point, rolling positions can seize this breakthrough opportunity.
(4) Market sentiment and news events: When market sentiment is as changeable as the weather, or when significant news events and policy changes may shake the market, rolling positions can become a powerful tool in your hands.
Key points
1. Only hold long positions: Avoid counter-trend operations; the bull market cycle in the cryptocurrency space is longer, and it is easier to capture upward trends.
2. Isolated position model: Use the exchange's 'isolated margin' model to isolate single position risks and avoid full liquidation.
3. Leverage limits: Even when the trend is clear, leverage should not exceed 5 times to avoid extreme fluctuations leading to liquidation.
4. Emotion management: Don't chase high prices after missing the opportunity to add positions; wait for a pullback or the next trend signal.
If there are no established buying and selling points, do not forcefully buy or sell. This may seem trivial, but it is very critical. Without buying and selling points, forcing trades is essentially emotional trading. Achieving this, your trading level will greatly improve. Of course, there is another issue: you must establish your own 'buying and selling points.' Everyone has different personalities, capital sizes, and risk preferences, so buying and selling points differ. Each person's buying and selling points are unique and only suitable for themselves.
Establish buying and selling point rules, then do 'buy at buy point, sell at sell point,' to avoid being swayed by market emotions. In the past two years, the market has been too extreme and changes too fast. If emotions cannot be restrained, it is easy to be led by the market; you feel good when it rises, and you feel doomed when it falls, always staying in this emotional state, leading to unstable profits.
The psychological process of retail investors basically goes through these stages:
1. When the market rises sharply, feeling regret because the position didn't satisfy, saying to wait for a drop to go all-in.
2. When the market has just experienced a significant drop, still full of confidence, chatting easily, believing the decline is too small, waiting for the opportunity to add positions.
3. As the market enters a downtrend phase, complaints begin to emerge, emotions drop, hoping for a rebound but seeing none.
4. As the market continues to fluctuate, people begin to remain silent, and no one is making comments anymore.
5. No one talks about buying the dip anymore; people always feel the market will continue to fall, and no one mentions the blockchain revolution.
6. Occasionally, someone expresses an opinion to warn others, but everyone seems still immersed in the current situation, with little reaction.
7. When the market begins to reverse, still waiting for a pullback, mistakenly believing it is a temporary rebound, continue to observe.
8. When the market shows obvious abnormalities, chasing prices leads to entering at a stage top.
9. The same operations repeated lead to elimination in the bear market. Buying the dip in a bull market and retreating from the market after losses ends the investment.
Playing in the cryptocurrency space is essentially a battle between retail investors and the big players. If you don't have front-line news or first-hand information, you can only be cut! Welcome like-minded cryptocurrency enthusiasts to discuss together~
Strong recovery, assets doubling! Keep up with the pace, layout in advance, easily reap big gains.
Continue to pay attention: FIS M
