When I graduated from university, that 50,000 was all the savings I made from affiliate marketing, fake orders, and delivering packages. Now this money has turned into 4 million, allowing me to bask in the sun at tea houses in Kunming, dawdle by the Erhai Lake in Dali, with monthly expenses of 3,500, living more freely than most office workers.
Many people often ask me for the secret to making money; in fact, in the crypto world, daring to think differently from most is far more important than understanding many technical indicators.
1. From 50,000 to 4 million: what avoids 80% of the pitfalls?
When I first entered the market, Bitcoin had already risen to tens of thousands, and with 50,000 I couldn't buy much, so I turned my attention to Ethereum and altcoins. Looking back now, this decision turned out to be fortuitous—high-volatility coins are not a risk for small funds, but an opportunity; the key is how to play them.
The core strategy is just two points:
Do not put all your eggs in one basket, and never scatter your efforts randomly.
50,000 principal divided into three parts: 30,000 to buy Ethereum (with a small amount of leverage), 15,000 to allocate to altcoin spot trading, and 5,000 kept as reserve funds. When the market is bad, Ethereum mitigates risks while altcoins may incur slight losses; when the market rallies, the gains from altcoins can easily cover the profits from Ethereum. This is a balance of 'stability + risk-taking.'
Anti-human behavior: Do not engage in 'selling high to buy low', but rather follow the strong.
Most people make one mistake: they panic and sell when their coins rise by 30%, only to turn around and buy coins that have dropped by 30%, calling it 'balancing their position.' But the truth of the market is that the strong remain strong, and the weak remain weak.
I once held both BTC and ETH simultaneously; when BTC rose by 30%, ETH dropped by 30%. 80% of people advised me to 'sell BTC to buy ETH', but I went against the tide—selling ETH to increase my BTC position. A month later, BTC rose another 50%, while ETH continued to drop by 20%. This wasn't luck, but rather following the basic logic that 'rising indicates strong buying pressure, while falling indicates heavy selling pressure', moving with the direction of the funds.
2. Practical tips for doubling small funds: a step-by-step strategy to turn 10,000 into 100,000.
Many people think trading coins relies on 'insider information' or 'precise predictions', but in reality, ordinary people can make money just by adhering to simple discipline. My summarized 'five-step phased method' is suitable for players with limited capital.
1. Divide the capital into 5 parts.
Divide 10,000 into 5 parts of 2,000, only use one part each time, keeping the rest untouched—avoiding the impulse to 'go all in.'
2. Use 2,000 to test the waters.
Choose a promising cryptocurrency and initially buy 2,000 in spot. Beginners should avoid leverage; the volatility of spot trading is already enough to double small funds.
3. Add to positions after a 10% drop.
After buying, if it drops 10%, add another 2,000. At this point, the cost is reduced by 5%, and a rebound of 5% will break even, significantly reducing psychological pressure.
4. Take profit on half when it rises 10%.
No matter how much it may rise later, first sell half to lock in profits. For example, if 2,000 rises to 2,200, sell 1,000; even if the remaining drops back, you've at least made 100.
5. Cycle operations to let profits accumulate.
Use profit-taking money to find new targets and repeat the operation. Using this method with 10,000, achieving a 5-10x return in a year is not difficult; the key is not to be greedy, and to be satisfied with 10% profit each time.
3. Narrow volatility candlestick strategy: the key to capturing explosive market movements.
Players engaging in contracts or short-term trading need to learn to identify 'signals of an impending breakout.' Narrow volatility candlesticks (NR4, NR7) are reliable indicators—when the price fluctuates less over several days, it often means a big market movement is coming soon.
NR4 strategy: Capture breakouts within 4 days.
NR4 refers to 'the candlestick with the smallest volatility within 4 days' (the high and low of a certain candlestick is smaller than the previous 3 days).
Going long: After NR4, if the K line breaks its high, and the price is above the 89-day moving average, place the stop loss below the NR4 low.
Short selling: After NR4, if the K line breaks its low, and the price is below the 89-day moving average, place the stop loss above the NR4 high.
Narrow fluctuations indicate a stalemate between bulls and bears; a breakout signifies a victory for one side, and market trends are often consecutive. I use this strategy for short-term Ethereum trading with a win rate stable above 60%.
NR7 strategy: Capture major market movements within 7 days.
NR7 is 'the candlestick with the smallest volatility within 7 days', less common than NR4 but with stronger explosive potential—7 days of narrow fluctuations indicate longer battles between bulls and bears, and the trend is more intense after the breakout.
The operating rules are similar to NR4, but the profit-taking time can be extended: NR4 is suitable for taking profits within 3 days, while NR7 can be held for about 6 days. Last year, when ETH rose from 1,800 to 2,400, that was a classic NR7 breakout, capturing at least a 30% gain.
Key reminder:
Must be combined with moving averages: only go long above the moving average, only go short below, and do not take contrary positions.
Always set a stop loss; breakouts occasionally have false signals, and a stop loss is a lifeline.
In conclusion: The essence of making money in the crypto world is 'not being bound by desires.'
I’ve seen too many people get inflated after making money, trading for luxury cars and houses, only to end up losing their profits. In fact, what one should learn the most in the crypto world is not the technology, but how to control desires.
I still don't buy a house or a car, not because I lack money, but because I understand: liquidity of assets is more important than face value. Opportunities in the crypto world are fleeting; locking money in real estate means you can only watch others make profits during good market conditions.
If you want to change your fate through the crypto world, remember three phrases:
Use spare money to play; if you lose, it won't affect your life, which helps maintain a stable mindset.
Always operate against the intuition of most people, especially when you feel 'very safe.'
Do not spend recklessly after making money; keep it to snowball—50,000 turning into 4 million doesn't rely on one-time profits, but rather on compound interest.
The crypto world truly offers ordinary people a chance to change their fate, but opportunities are only given to those who 'understand the rules and can restrain themselves.'
One person alone cannot succeed; a lone sail cannot travel far! In the crypto world, without a good community and firsthand information, feel free to follow me (Su Xiaowan) to learn how to profit without investment, and I look forward to your joining!
