Do you work hard every day, yet can only watch your meager salary push you further away from financial freedom? Do you long to change your fate but hit walls in traditional investment fields?
Today, as a senior crypto analyst blogger, I will use my personal experience to take you into the crypto world and unveil the mystery of ordinary people’s success in this space.
My Journey of Success in the Crypto World
Upon graduating from college, I did not follow most people in seeking a 9-to-5 job, but chose a challenging path — the crypto world. Initially, I accumulated 50,000 in capital through various small tasks like affiliate marketing, completing orders, courier services, and app crowdsource tasks.
I deeply understand that BTC prices are too high and the risks are significant, so I turned my attention to ETH leverage and altcoin spot trading. Through careful coin selection and reasonable position management, I made a big profit when the market was good, and even managed to minimize losses when the market was not favorable. Thus, I navigated through the crypto world and eventually earned my first 4 million.
Now, I no longer have to rush for work. I enjoy life in Kunming and Dali, living comfortably with a monthly expense of 1500. I don’t buy a house or a car because I know that in the crypto world, the speed of wealth growth may far exceed your imagination.
Taboos and Strategies in Crypto Investment
Taboos
Avoid Contracts, Holding Positions, and Shitcoins: Contract trading is like a double-edged sword; while it may bring high returns, it also carries a greater risk of total loss. Holding positions will only increase your losses, and shitcoins are tools for manipulators to harvest retail investors; a careless mistake could lead to irreversible losses.
Avoid Frequent Buying and Selling: This is a common problem for most retail investors; they rush in when prices rise and sell quickly when prices fall, often resulting in buying high and selling low. Frequent trading not only increases transaction costs but also leads to a loss of market judgment.
Do Not Put All Your Coins in One Wallet or Exchange: This is like putting all your eggs in one basket; once the wallet is stolen or the exchange goes bankrupt, you will have nothing left. Diversifying storage can reduce risks and protect your assets.
Strategy
Capital Management
Concentrated Investment of Small Amounts: For capital under 100,000, focus on holding one promising coin and conduct in-depth research on its fundamentals and technicals to better seize opportunities.
Dispersed Investment of Moderate Amounts: For capital between 200,000 and 300,000, it can be spread across two coins to reduce the risk of a single coin.
Reasonable Allocation of Large Amounts: For capital under 500,000, holding three to four coins is sufficient. No more than five coins should be held to avoid mismanagement. Additionally, adjust positions based on market conditions, concentrating firepower in bull markets and using light positions in bear markets.
Trend is King
Stay Updated on Market Dynamics: By following news and learning techniques, understand market trends and technical indicators to improve investment success rates.
Follow the Trend: Do not blindly bottom-fish or chase highs. Downward rebounds are often traps, and upward pullbacks may be pitfalls. Following market trends is essential to remain undefeated in the crypto world.
Do Not Guess the Main Players' Intentions: The operations of market leaders are difficult to predict. We should focus on our own investment strategies and not be swayed by the actions of the main players.
Grasping Market Rhythm
Actively Enter the Market: When the market is lively, investor sentiment is positive, making it easier to seize opportunities. Entering at this time often leads to better returns.
Flexibly Adjust Strategies: Timely adjust investment strategies based on market changes, without rigidity or stubbornness. Only by being flexible can you remain steady in the waves of the crypto world.
Stop Loss and Take Profit
Set Fixed Stop Loss Points: Stop losses timely when losing to avoid greater losses. This is an important means of protecting your principal.
Gradually Increase Selling Price: Gradually raise the selling price when in profit to ensure profits are not lost. This maximizes your returns.
Decisive Decision-Making
Buy Quickly: Be decisive when discovering opportunities, don’t hesitate. In the crypto world, opportunities are fleeting; hesitation will only make you miss the chance to make money.
Sell Firmly: Sell decisively when reaching expected goals or when the market turns, don’t be greedy. Greed is a major taboo in investing; it can make you lose your rationality and ultimately lead to losses.
Cautious in Increasing Positions
Thoughtful Consideration: Before increasing positions, ask yourself if you are willing to invest new funds under current circumstances. If the answer is no, don’t easily increase your positions.
Combining Long and Short
Focus on Long-Term: Avoid frequent short-term speculation; significant money should follow the overall market trend and hold promising coins in the long term.
Short-Term as a Supplement: Appropriate short-term operations can be undertaken, but be careful to control risks and not let short-term trades affect your mindset.
Rational Bottom-Fishing
Do Not Blindly Follow the Trend: A large drop does not mean you can catch the bottom; a significant market decline does not necessarily mean the bottom has been reached. Blindly bottom-fishing may lead you to further losses.
Stay Rational: Only a few can genuinely make money in the market. We must remain rational and not blindly follow the trend to gain a share in the crypto world.
Selection of Intraday Trading Time Frames
In crypto trading, choosing the right time frame is crucial. Different time frames have different advantages and disadvantages, suitable for different trading styles.
1-Minute Charts
Suitable for those who like to observe price trend details and hope to enter and exit the market through short-term trading. This time frame provides more trading opportunities but requires almost continuous attention, with smaller stop-loss and profit targets and larger position sizes.
5-Minute Charts
Suitable for those focusing on larger intraday trends without needing to check data every minute. Trading frequency is relatively low, with larger stop-loss and profit targets compared to 1-minute charts and moderate position sizes.
10-Minute or 15-Minute Charts
Suitable for those who want to see the main trends and price fluctuations throughout the trading day. Fewer trades, larger stop-loss and profit targets, and smaller position sizes require less continuous attention.
Multi-Time Frame Analysis
Some traders use multiple time frames to find trading opportunities. For example, first determine the overall trend direction on a longer time frame, then look for entry and stop-loss points on a shorter time frame. This improves trading accuracy and risk-reward ratios.
Alternative Chart Types
Besides common time period charts, there are alternative chart types like Tick charts and Renko charts. Tick charts generate candlesticks based on a fixed number of trades, while Renko charts form bricks based on price movement. These chart types can be chosen according to different market conditions and trading needs.
Final Thoughts
The crypto world is a field full of opportunities and risks. For ordinary people, it could be a chance to change their destiny, but we must approach it with caution. As a senior crypto analyst blogger, I hope to help everyone avoid detours in the crypto world by sharing my experiences and insights.
If you also long for financial freedom in the crypto world, feel free to follow me. I will continue to share more insights and investment strategies. At the same time, I welcome like-minded friends to join our discussion group to explore the mysteries of the crypto world together and harvest profits! Remember, the martial arts manual has been given to you; whether you can become famous in the martial arts world depends on your own efforts!#币安HODLer空投ERA #特朗普施压鲍威尔
