Insights from a post-95 veteran after 6 years: turning 400,000 into 40 million, all thanks to these 6 'simple methods'.

I am 31 years old this year, from Yichang, with two houses: one for my parents' retirement and one for myself. I don't consider myself very wealthy, but this is the result of my 6 years of cryptocurrency trading—from an initial capital of 400,000 to now having accumulated over 40 million in my account. I haven't relied on insider information or any so-called 'secret tips'; I've just used a set of operational logic that outsiders deem 'too simple'.

Today, I am sharing the pitfalls I have stepped in and the experiences I've summarized over these 2000 days for free. These 6 practical rules in the cryptocurrency market can help you avoid losing 100,000 if you understand just one; if you can apply three, you are already better than 90% of retail investors.

1. After a sharp rise, don't rush to sell.

When the price suddenly rises sharply and then slowly falls back, this situation is mostly due to the operators quietly buying chips, not because it's really going to drop. Don't panic and sell just because you see the price increase; a rapid rise followed by a slow drop is usually a 'washout' meant to scare off the weak hands. The real danger is 'sudden volume surge followed by an instant plunge', which is the final trap for investors.

2. After a sharp drop, don't randomly pick up bargains.

When the price drops significantly and then slowly rebounds slightly, this is not an opportunity to buy the dip; it is mostly the main force taking the chance to sell. Don't always think, 'It's already dropped so much, it can't drop further, right?' This kind of wishful thinking is the easiest to fall for. Such slow rebounds often lure you into entering, and prices may still drop afterwards.

3. High trading volume at highs is not scary; lack of volume is what you should be cautious about.

When the price rises to a high level, if the trading volume remains high, it indicates that there is still upward momentum, so there's no need to rush and shout 'peak'; but if at a high level the trading volume suddenly decreases, even if the price is still rising, it's likely to start falling.

4. A sudden surge in volume at the bottom is useless; continuous volume increase is the real opportunity.

When the price is at the bottom, if one day the trading volume suddenly surges, it's mostly a 'smokescreen', so don't take it seriously. The real buy signal is: the price remains flat for a period of time, with very low trading volume, followed by several days of rising prices and increasing trading volume—only then is it reliable to take action.

5. Trading cryptocurrencies is essentially trading people's emotions; trading volume is the 'emotional meter'.

There's no need to stare at the K-line chart all day and guess randomly; looking at trading volume is more practical. When the price rises and the trading volume increases, it indicates that everyone is buying, and the sentiment is relatively greedy; when the price falls and trading volume decreases, it indicates that everyone is afraid, and the sentiment is relatively panicked; when the price and trading volume are 'out of sync', it means some people are bullish while others are bearish, indicating a large divergence. Once you understand everyone's emotions, you can get a rough idea of how the price will move.

6. Being able to 'resist the urge to move' is a true skill.

Being able to stay in cash and wait for opportunities shows that you do not operate blindly; not chasing high prices shows that you are not greedy; being willing to cut losses when it’s time shows that you are not afraid. On the surface, it may seem calm, but inside you must be as firm as steel.

After 6 years of trading cryptocurrencies, there are no complex techniques; it’s all about sticking to these few practical rules.