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A crypto player who has never worked shares anti-intuitive money-making logic
The year I graduated from college, I had 50,000 in my hand, all saved from being a Taobao affiliate, doing fake orders, and running deliveries. Now, this money has turned into 4 million, and I have never submitted a resume or worked a single day.
Basking in the sun at a teahouse in Kunming, daydreaming by the Erhai Lake in Dali, with an expenditure of 3500 per month, enough for me to live more comfortably than most office workers.
Many people ask me for the secret to making money; in fact, it's very simple: in the crypto world, daring to think differently from the majority is more important than how much technical knowledge you have.
1. From 50,000 to 4 million: How did I avoid 80% of the pitfalls?
When I first entered the market, Bitcoin had already risen to tens of thousands each. I looked at the 50,000 in my account and felt I could not buy much, so I turned my attention to Ethereum and altcoins.
Looking back now, this decision was a stroke of luck – for small funds, high-volatility coins are not a risk, but an opportunity; the key lies in how to play.
My core strategy has just two points:
Never put all your eggs in one basket, but also never scatter them like pepper.
Divide 50,000 into three parts: 30,000 to buy Ethereum (with a small amount of leverage), 15,000 for altcoin spot, and 5,000 as flexible funds. When the market is bad, Ethereum can withstand risks, while altcoins may incur small losses; when the market improves, the gains from altcoins can easily cover the profits from Ethereum, achieving a balance of 'stability + speculation'.
Counterintuitive operations: Sell what has risen, add to what has fallen? Quite the opposite.
Most people make a fatal mistake: seeing their coins rise by 30% and panicking, quickly selling to buy back the coins that have dropped by 30%, calling it 'balancing their position'. But the truth in the market is that the strong remain strong, and the weak remain weak.
I once held both BTC and ETH at the same time; BTC rose by 30%, while ETH fell by 30%. At that time, 80% of people would advise me to 'sell BTC to buy ETH', but I did the opposite – sold ETH and added to BTC. As a result, a month later, BTC rose another 50%, while ETH continued to fall by 20%.
This is not luck; it is the basic logic of investing: an increase indicates strong buying, while a decrease indicates heavy selling. Instead of fantasizing that 'after a big drop, there will be a rebound', it’s better to follow 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 that trading coins relies on 'insider information' or 'accurate predictions', but in fact, ordinary people can make money through simple discipline. My summarized 'Five-Step Incremental Method' is suitable for all players with limited capital.
Divide the funds into 5 parts.
Divide 10,000 into 5 parts of 2000; only use one part each time, and never touch the remaining money – this is to avoid the impulse of 'putting all in at once'.
Test the waters with 2000.
Choose a cryptocurrency you are optimistic about and buy 2000 worth of spot first. Remember, newbies should never touch leverage; the volatility of spot trading is enough to double small amounts of capital.
Add to your position after a 10% drop.
After buying, if it drops by 10%, add another 2000. At this point, your cost has decreased by 5%, and as long as it rebounds by 5%, you can break even, which will greatly reduce your psychological pressure.
Take profits after a 10% increase.
No matter how much it can rise afterwards, sell half first to lock in profits. For example, if 2000 rises to 2200, sell 1000, and even if the remaining 1000 falls back, you still made a profit of at least 100.
Cycle operations to let profits roll.
Use the profits from taking profits to find new targets and repeat the previous steps. Using this method with 10,000, it’s not difficult to multiply by 5-10 times in a year; the key is not to be greedy; be satisfied with a 10% profit each time.
3. Narrow fluctuation candlestick strategy: The key to capturing explosive market trends.
Players engaged in contracts or short-term trading must learn to identify 'signals of imminent explosion'. Narrow fluctuation candlesticks (NR4, NR7) are one of the most reliable indicators. Simply put: when prices fluctuate increasingly less over several days, it often means a big trend is about to come.
1. NR4 Strategy: Capture breakouts within 4 days.
NR4 refers to the 'K-line with the smallest fluctuation within 4 days'. When the difference between the high and low points of a certain K-line is smaller than that of the previous 3 days, it signals NR4.
Long position timing: When the K-line after NR4 breaks its high point and the price is above the 89-day moving average, set the stop-loss below the low point of NR4.
Short selling timing: When the K-line after NR4 breaks its low point and the price is below the 89-day moving average, set the stop-loss above the high point of NR4.
The brilliance of this strategy lies in the fact that narrow fluctuations indicate a stalemate between bulls and bears; a breakout indicates one side has won, and the subsequent market is often coherent. I have used this strategy for short-term Ethereum trades with a win rate stabilizing above 60%.
2. NR7 Strategy: Capture major trends within 7 days.
NR7 is the 'K-line with the smallest fluctuation within 7 days', less common than NR4 but with stronger explosive potential. Because of the narrow fluctuations over 7 days, it indicates a longer struggle between bulls and bears; once it breaks out, the trend will be more intense.
The operation rules are similar to NR4, but the profit-taking time can be extended – NR4 is suitable for profit-taking within 3 days, while NR7 can last about 6 days. Last year, ETH rose from 1800 to 2400, which is a typical NR7 breakout; those who seized it could earn at least 30%.
Key reminder:
The narrow fluctuation strategy must be combined with moving averages: only go long above the moving average and short below it; do not take contrarian positions.
Always set a stop-loss. Such breakouts occasionally have false signals; a stop-loss is a lifeline.
In conclusion: The essence of making money in the crypto world is 'not being enslaved by desire'.
I have seen too many people earn money and then inflate, buying luxury cars and houses, only to lose the profits back. In fact, what should be learned in the crypto world is not technology, but controlling desire.
I still do not buy houses or cars, not because I do not have money, but because I understand: the liquidity of assets is more important than appearances. Opportunities in the crypto world are fleeting; locking money in real estate means watching others profit when a good market comes.
If you also want to change your fate through the crypto world, remember these three sentences:
Use spare money to play; if you lose, it won't affect your life, which helps maintain a stable mindset.
Always operate contrary to the intuition of the majority, especially when you feel 'very safe'.
Don’t spend your earnings recklessly; save them for compounding – turning 50,000 into 4 million relies not on a one-time windfall, but on compound interest.
Follow me for the next article 'How to Capture the Breakout Points of Altcoins with NR Strategy' and 'The Correct Way to Use Leverage for Small Funds'. If you have questions, just ask in the comments; I will share the pitfalls I've encountered and the lessons I've learned bit by bit.
The crypto world is indeed an opportunity for ordinary people to change their fate, but opportunities are only given to those who 'understand the rules and can restrain themselves'.
It is difficult to row a boat with just one log, a lone sail cannot sail far! In the crypto world, if you do not have a good circle and first-hand news, I suggest you follow me (Whale Trace Talks About Coins) to help you profit easily. Welcome to the team!!
