Beginning: Stop believing in 'get-rich-quick myths'; first learn 'not to get cut' before talking about making money.
In the first two years, I watched the loss numbers in my account and almost deleted all trading software—every time I bought coins, they fell; every time I sold, they rose. The 'doubling opportunities' spoken by others were all 'pits' for me. Until the third year, I suddenly realized: the core of making money in the crypto circle is not 'catching how many bull coins', but 'avoiding how many traps'.
Today, I won't talk about complicated theories, just share the '3-step money-making method' that took me from losses to profits and 8 iron rules. The content isn't much, but each point is earned with real money. If you find it useless after reading, feel free to criticize me. First, recognize a harsh reality: 90% of people in the crypto circle are here to 'donate money'. Some always ask: 'Can trading crypto make you rich?'
Yes, but the probability is lower than winning the lottery. The stock market is '7 losses, 2 break-evens, and 1 profit', while the crypto circle is even harsher, with 90% of people being 'cut down like leeks'. Why? Because human greed and luck make you always feel like 'you are the exception'.
I've seen too many families break apart because of crypto trading: some mortgaged their houses to gamble on altcoins, others borrowed high-interest loans to trade contracts, ultimately switching from 'wanting to get rich' to 'wanting to recover losses', then to 'family destruction'. Remember: the premise of making money in the crypto circle is 'not to lose large amounts of money'. Before you think about 'how much to earn', first learn to 'avoid these 5 deadly traps':
Second, the 5 major traps of 'cutting leeks' in the crypto circle; if you fall into 2 of them, don't play anymore. I've stepped into every pitfall and summarized the most deadly 5 ways to get 'cut', which you must engrave in your mind:
“Big players' bust”: Don't trust 'project visions', they are only in it to 'cash out'.
Luna dropped from $100 to $0.00001, FIL dropped from $200 to $5. When these coins were rising, the project teams would paint a 'world-changing' picture, and once you were on board, they would secretly unload. Remember:90% of new coins launched are for cutting leeks.Don't listen to the 'team leader' bragging; truly valuable coins won't rush to let you 'get rich quickly'.“Small exchanges”: What you care about is the interest, but they are focused on your principal.
Exchanges other than the top five can disappear overnight. Last year, FTX (once in the global top three) collapsed in one night, let alone those unknown small platforms. My principle is:Only trade on the top two exchanges, and do not keep money on the platform, transfer it to your own wallet.— Even if the fees are higher, at least the principal is safe.“Contract leverage”: Making money 10 times is not enough to cover losing once.
I've seen too many people use 10x leverage to 'make quick money', winning the first 9 times, but losing everything on the last time. Contracts can be traded, but you must remember:Leverage should not exceed 2x, and a stop-loss must be set (run if you lose a maximum of 5%).. Now I only use 10% of the principal for contracts, with 1x leverage, even if I lose, I won't feel heartbroken.“Altcoin scams”: The 'profit screenshots' in the group are all for show.
Those shouting 'this coin will rise 100 times' and showing profit screenshots in the group, 99% are shills. They will let you make a small profit first, lure you to increase your position, then suddenly dump, leaving you stuck at a high price. My iron rule:Do not touch altcoins that you have 'never heard of or are not on major exchanges'.Even if it skyrockets, I won't envy it.“Self-theft”: With small wallets and small platforms, your coins may 'disappear'.
Some small wallets or exchanges may secretly transfer your coins away and then tell you 'they were stolen by hackers'. Remember:Choose only open-source top projects for wallets, leave only a small amount of operating funds on exchanges, and transfer large amounts of coins to your own wallet..
Third, making money actually involves 3 steps, simple enough that you wouldn't believe it.
After two years of continuous losses, I implemented these 3 steps to achieve stable profits; beginners can follow suit:
“Filtering”: Only trade coins you 'understand'.
Divide all coins into two categories: 'understandable' (like Bitcoin, Ethereum, or projects you've researched for over 3 months) and 'not understandable'. If you don't understand it, even if it rises 100 times, don't touch it. I currently hold no more than 5 coins, all mainstream or with practical use cases. Although they rise slowly, they also resist declines.“Waiting for signals”: Use the RSI indicator to catch entry and exit points.
Don't use complicated indicators; RSI is enough:If RSI is below 30 (oversold), it indicates a drop too far; if combined with a stable trend line, you can buy;
If RSI is above 70 (overbought), it indicates a rise too far; if combined with a trend line breakdown, you can sell.
For example, when BTC was at $30,000 this year, RSI dropped to 28, I bought in, and when it rose to $40,000, RSI reached 75, I sold, making a 30% profit—simple enough for beginners to grasp in a week.
“Controlling positions”: Never let a single trade wipe out your principal.
Single coin position should not exceed 30%, and total position should not be fully invested (at least keep 20% in cash). For example, if you have 100,000, use a maximum of 30,000 to buy one coin; even if it drops 50%, you only lose 15,000, leaving room for recovery.
Fourth, 8 iron rules to help you survive in the crypto circle for 10 years.
These 8 rules are what I summarized after countless failures, each one could save your life:
Never use 'money for living' to trade crypto; losses will affect your mindset.
Do not touch new coins within 3 months of their launch; wait until the big players have offloaded their positions.
Contract leverage must not exceed 2x, and a stop-loss must be set.
The 'insider information' in groups is all traps; whoever believes will lose.
If a single coin's profit exceeds 50%, sell half to lock in profits.
For market trends you don't understand, it's better to stay out than to buy blindly.
Only trade 2-3 times a week; the more you operate, the more mistakes you make.
Remember: if you can survive in the crypto circle, you are already ahead of 90% of people.
Fifth, the last sentence: You are not here to 'get rich', but to 'slowly earn'.
From losing for two years to making steady profits for three years, my biggest realization is: the secret to making money in the crypto circle is not 'how many opportunities to seize', but 'how few mistakes to make'. Avoid traps, understand signals, control positions—these three steps seem simple, yet can help you become part of the 10% survivors.
