Having been in the cryptocurrency circle for ten years, with six years of full-time trading, through over 3,100 days and nights, from long-term to ultrashort, from swing trading to high-frequency trading, I have almost tried every well-known strategy in the market. Today, I will speak frankly: 90% of people have misunderstood the true logic of making money in the cryptocurrency circle.
Many people think making money in the cryptocurrency circle relies on luck and courage, but that's not the case. I have always believed in the '10,000-hour rule'—studying the market for 8 hours a day, reviewing trades for 200 trading days a year, for a full five years, only then could I say I have reached the edge of stable profits. In these five years, you need to understand the capital games behind candlestick charts, grasp the volatility patterns of different cryptocurrencies, and even learn to deal with your own greed and fear. Those who think they can achieve quick success in three months usually end up as someone else's profit.
More importantly, there must be a major pitfall in the cryptocurrency circle every ten years. The bear market in 2018, the LUNA crash in 2022, each time a group of people returns to square one overnight. So I set a strict rule for myself: within ten years, no matter how good the market is, the principal investment must not exceed the maximum loss I can bear. If you have 100,000 yuan in spare cash, invest at most 30,000; if you have 1,000,000, investing 200,000 is enough. Remember, preserving the principal is not being conservative; it is leaving a life for the next opportunity.
In recent years, I have seen too many 'myths': some have turned a few tens of thousands into tens of millions through leveraged contracts, posting luxury cars and mansions on social media every day. But what you don’t know is that 80% of these people cannot withstand a single bear market. High-leverage contracts are like equipping a sports car with a rocket launcher; it goes fast, but once there’s a pit on the road, it flies off. Last year, there was a so-called 'contract master' who went all in on a cryptocurrency with 50 times leverage; after a wave of corrections, he faced liquidation, losing not only his profits but also owing money to the platform, and ultimately disappeared.
Ultimately, the most terrifying thing in the cryptocurrency circle is not market volatility, but human nature. When the big trend comes, during a rise, you always feel it can go to the sky, and during a fall, you think it will drop through the center of the earth. At such times, all the technical indicators you have learned become ineffective, and your mind is left with only 'wait a bit longer' or 'let's gamble'. I have seen too many technical experts stumble in this 'trend illusion', clearly seeing the right direction, yet due to greed or holding onto positions, they end up turning profits into losses.
In my opinion, the core of long-term survival in the cryptocurrency circle can be summed up in one word: stability. Stability does not mean not making money, but rather making money within your capability; it does not mean avoiding risks, but rather calculating the worst outcomes before taking risks. Those who think they can multiply their investments several times with contracts are essentially no different from buying lottery tickets.
What mistakes do you most easily make in trading? Holding onto a position or chasing highs? Let's discuss in the comments, and follow [Whale Track Talks Crypto].#Chainbase上线币安 #币安HODLer空投C
