From my personal experience, making money in the cryptocurrency market is the simplest and fastest! Let me introduce myself; I entered the cryptocurrency market in 2015, but I really began to play in 2016. In 2017, I caught the big bull market and earned my first 10 million right away, but later I got carried away and lost everything. I even lost over 3 million of my parents' hard-earned savings, and I borrowed 5 million from friends and family to trade, and lost it all, paying tuition to the market – over 8 million in total losses. My entire family nearly faced collapse, and my beloved wife fought with me every day over this, threatening divorce. Under such pressure, I thought about ending it all several times. Fortunately, I remained resolute at that time and believed I could earn it back!
After several years of adjustment, I began to quit my job to trade cryptocurrencies. I swore to my wife that if I don't make it back... I then fully dedicated myself, summarizing mistakes made earlier, observing the thoughts and techniques of trading masters, and eventually began to stabilize. Turning losses into profits is truly not easy! The account started to break even, combining contract and spot trading, no longer blindly jumping in and out, but planning the account well; combining medium and short-term strategies is the best for compounding!
Later, I secretly borrowed 200,000 from my in-laws, and over two years, I turned that 200,000 into a net worth of millions. From that moment on, my wife looked at me differently; it was from the moment I started making money that I gained confidence. My wife became like a well-behaved child, completely compliant with me!!!
From my own experience, divided into four phases over time: Phase one (2016-2017). The ignorant are fearless, making money until losing rationality.
I entered the cryptocurrency market in 2016 (I started in 2013), catching the big bull market in 2017. With a principal of 100,000, I peaked over 10 million. Then I got carried away, thinking I could achieve anything. At that time, I thought of setting a small goal: to earn 100 million and quit once I reach it. Then... it turned into a story of 'a person with a head full of desires, feeling invincible, being taught a harsh lesson by the market.'
Phase two (2018-2019). Reflect on oneself and start anew.
In 2018, the market entered a downward cycle. Watching my hands full of altcoins and a hopeless future, my mood hit rock bottom. Every day, I would scold myself. But the market wouldn't give you a break because of your pain. Thus, this phase was more about self-reflection and understanding the market. After a period of adjustment, I realized two truths. One is that no one is superior; we are all ordinary people. The reason I could make money in 2017 wasn't because I was brilliant; it was just that the market was too good, and I was fortunate to be on the trend, like a pig on a windfall, taking off was inevitable. The second is about managing funds. Small funds have their ways of operating, and large funds have theirs. You cannot use small-fund thinking to play with large funds; otherwise, the consequences will be severe. After realizing this, I tidied my emotions and began to reallocate my holdings, clearing out most altcoins and replacing them with BTC, ETH, and USDT.
Phase three (20-21). Reasonable allocation, timely profit-taking
After a complete bull and bear cycle, the mindset is relatively much calmer. Coupled with the fact that the cryptocurrency market has entered a rising cycle again, assets have begun to appreciate continuously. At this time, what is done more is actually to take profits and adjust the allocation continuously. So comparatively, it is not as vigorous as it was in 2017. Maybe it's because I am older now; I feel that simplicity and tranquility are the real things.
Phase four (22-?). Cultivate inner strength and believe in the future.
I firmly believe in the future of the cryptocurrency market; surpassing previous highs is inevitable. Right now, we only need to do one thing: do not exit the market, and persist in holding quality assets; the future will surely bring abundant rewards.
If you want to trade cryptocurrencies for a lifetime but do not understand the technology and cannot find a suitable trading method, then you might as well try this 'foolproof' operation – simple and practical, even if you are a novice, you can operate it easily, with over 80% accuracy; this method can be used for buying and selling in the cryptocurrency market! It is recommended to save it.
Is making money in cryptocurrency trading that difficult?
If you haven't found a method, it is indeed very difficult; however, if your method is correct, you will find that making money is so easy.
The method I will share with you today is actually very simple. Even if you are a novice in the cryptocurrency market, as long as you strictly follow this method, you can easily make money.
First, we need to set the moving averages on the candlestick chart to three moving averages: the 5-day moving average, the 15-day moving average, and the 30-day moving average. The 30-day moving average serves as a lifeline, providing strong support or resistance. Then, trading can be conducted based on these three moving averages.
1. The chosen cryptocurrency must be in an upward trend; of course, those in a consolidation phase are acceptable, but those in a downward trend or with downward-opening moving averages should definitely not be selected.
2. Divide the funds into three equal parts. When the cryptocurrency price breaks through the 5-day moving average, buy 30% with a light position. When the price breaks through the 15-day moving average, buy another 30%. Similarly, buy the last 30% when it breaks through the 30-day moving average. This requirement must be strictly enforced.
3. If the price does not break through the 15-day moving average after exceeding the 5-day moving average, but instead pulls back, as long as the pullback does not break the 5-day line, maintain the original position; if it breaks, sell.
4. Similarly, if the price breaks the 15-day moving average but does not continue to rise and pulls back without breaking the 15-day moving average, continue to hold; if it breaks, sell 30% first. If the 5-day moving average does not break, maintain the 30% position at the 5-day moving average.
5. When the price continues to break above the 30-day moving average and then pulls back, sell according to the previous method.
6. Selling is the opposite; when the price is at a high and breaks below the 5-day line, sell 30% first. If it doesn't continue to drop, hold the remaining 60% position. If the 5-day, 15-day, and 30-day lines all break, sell everything; do not hold onto any illusions.
In the cryptocurrency market, real experts are not necessarily those with exceptional technology. I have always strictly adhered to the iron rules of the market:
First, for those complex situations that you cannot see clearly, do not rush in; pick the soft fruit first; trading cryptocurrencies is no different.
Second, do not invest all your money in one cryptocurrency at once. Even if you are very optimistic about it, and later prove yourself right, don't buy all at once. Things can change in an instant; no one knows what will happen tomorrow.
Third, if you mistakenly buy a cryptocurrency in a downward trend, you must sell quickly to avoid expanding losses.
Fourth, if the cryptocurrency you bought currently has not lost, but is already in a downward trend, you should quickly exit and observe.
Fifth, do not pay too much attention to cryptocurrencies that are not in an upward trend. No matter what happens in the future, do not accompany the main forces in building positions. Retail investors do not have time to waste with them.
Sixth, do not fantasize that you can make money by constantly trading short-term. Frequent trading may give you a thrill, but it will cost you a lot of money. The only beneficiaries are the exchanges, and you will not have such a high level; you are not a market maker. Do not buy too many cryptocurrencies, preferably not exceeding 10. You do not have the energy to watch them all. It's like trying to marry five wives; even if you are fit, you cannot satisfy them all. The story of Wei Xiaobao only happens in novels.
Seventh, just because this cryptocurrency is very cheap now and has dropped a lot, does not mean it's a reason to buy. It could drop even more!!! Eighth, just because this cryptocurrency is very expensive now and has risen a lot, does not mean it's a reason to refuse to buy or sell. It could rise even higher!!!
With just one trick: (Master these 6 essential trading indicators in the cryptocurrency market). This trick has been compiled from tens of thousands of practices. Last year, I played with 200,000 and now have 20 million, effortlessly achieving a hundredfold profit.
1. MACD
MACD measures the convergence and divergence of two moving averages of asset prices over time.
MACD indicates the value separation between two moving averages with different calculation periods.
When the MACD line crosses above the signal line from below, the trend will turn bullish.
When the MACD line crosses below the signal line from above, the trend will turn bearish.
2. RSI
RSI is an oscillating indicator that reflects the relative strength between upward and downward trends.
RSI indicator around the 30 level: reflects oversold levels
RSI indicator around the 70 level: reflects overbought levels
To draw an upward trend line on the indicator, you need to connect two or three or more peaks of the RSI indicator, as when HH points appear.
On the other hand, draw a descending line connecting three or more peaks; these points are descending.
3. Bollinger Bands
Bollinger Bands are one of the most widely used trading indicators.
Used to compare the price value of any asset and the changes in its relative value over a period of time.
When these bands gradually narrow upwards to the point of seeming to merge or overlap, 'squeezing' occurs.
If the price is close to the upper limit, it indicates a bullish breakout.
If the price converges with the lower band, it indicates a bearish breakout.
4. EMA
The exponential moving average is a type of weighted moving average used to measure bullish and bearish trends.
EMA is used to determine whether the price is rising or falling.
EMA can also serve as support and resistance.
5. VWAP
The volume-weighted average price is a technical analysis tool that shows the ratio of asset prices to their total trading volume. It provides traders and investors with a measure of the average trading price over a given time period.
6. Volume
Trading volume is an indicator that measures the market's activity and liquidity over a specific period. Higher trading volume is considered advantageous because it implies better liquidity and order execution.
Finally, Lao Bo shares with everyone the 20 investment tips I have summarized for Bitcoin trading. In any investment market, the basic investment strategies are consistent. However, for complex and variable markets, grasping general investment strategies is essential, but on this basis, investors must also learn and master certain practical skills because some investment techniques, tested through substantial practice, not only are philosophically meaningful but also have strong practical guidance. I hope these 20 tips can assist your investment journey.
1. Invest with 'spare money'
Remember, the money used for investment must be 'spare money,' meaning funds that do not have urgent, specific uses. Because if investors use necessary living expenses for investment, any potential losses will directly affect their livelihoods. Or, if one uses money that should not be used for investment to generate wealth, they will be at a psychological disadvantage, making it difficult to maintain an objective, calm attitude during decision-making, increasing the chances of failure in the investment market.
2. Knowing yourself is key
Know yourself and know your enemy, and you will never be defeated. But being in the cryptocurrency market, knowing oneself is paramount. Investors need to understand their own personalities, as those prone to impulse or severe emotional tendencies are not suitable for this investment. Most successful investors can control their emotions and maintain strict discipline, effectively restraining themselves. Therefore, the one who truly knows themselves can ultimately succeed in the cryptocurrency market.
3. Face the market squarely and discard fantasies
The market is real; do not let emotions dictate, overly longing for the future and reminiscing the past. A seasoned trader said: A person full of fantasies and rich emotions is a happy person, but they are not suited to be an investor. A successful investor can separate their emotions, fantasies, and trading.
4. Small investors must not invest blindly
Successful investors do not blindly follow others' opinions. When everyone is in the same investment position, especially when small investors are also following suit, successful investors feel danger and change their course. Blindly following is a fatal psychological weakness for small investors. When an economic data point is released or a sudden piece of news appears, and the price chart 'breaks through' within five minutes, everyone rushes to jump into the market. They are not afraid of losing money together, only afraid of everyone making a profit. In a sense, sometimes misjudging market trends or suddenly reversing the situation after entering a position, leading to being trapped, is a normal occurrence that even experts can’t avoid. However, the most foolish actions during decision-making and post-event handling stem from the psychology of small investors.
5. Do not trade excessively
To become a successful investor, one principle is to always maintain funds of 2-3 times or more to cope with price fluctuations. If your funds are insufficient, you should reduce the contracts you hold; otherwise, you may be forced to 'cut losses' to free up funds, even if your foresight proves correct later.
6. Once the decision is made, do not change it lightly
If you have considered and analyzed sufficiently and set a price level and plan for entering the market that day, do not easily change your decision due to the fluctuations in current prices. Decisions made based on daily price changes and market news are generally very dangerous unless you are an investment master with a sudden flash of inspiration.
7. Be decisive
When investing in the Bitcoin market, there are many psychological factors leading to failure. A common scenario is that investors, facing increasingly large losses and knowing they cannot afford to hope, often hesitate and fail to make decisive actions, leading to deeper entrapment and increased losses. A decisive cut is necessary when it is time to do so.
8. Do not implement others' opinions
This does not advocate for dogmatism. It must be understood that among investors, only you will be responsible for your investment results. When you grasp the market direction and have made a basic decision, do not easily change that decision due to outside influences. Sometimes, others' opinions seem reasonable, prompting you to change your mind, but later you may realize that your own decision was the correct one. Therefore, others' opinions are always just references; your opinion is the deciding factor for buying and selling.
9. When uncertain, wait and observe
Investors do not have to enter the market every day. Newcomers are often eager to buy and sell, but successful investors wait for opportunities. When they enter the market and feel confused or uncertain, they will also choose to step back and adopt a wait-and-see attitude.
10. Stop buying and selling appropriately
Trading day after day can dull your judgment. A successful investor once said: Whenever I feel my mental state and judgment efficiency drop below 90%, I start losing money, and when my state falls below 90%, I begin to incur losses. At this point, I will put everything down and go on vacation. A short break from the market can allow you to re-recognize the market, re-recognize yourself, and help you see the direction of future investments clearly. Remember, if you stay too long in the woods, you won't see the trees.
11. In adversity, step away from the market to 'rest'
Investors, due to personal interests and losses, often remain in a state of extreme tension. If profitable, there is some satisfaction to comfort them; but if in adversity, constantly losing and even making unnecessary mistakes, one must be cautious not to lose composure.
Awareness and calmness; at this time, the best choice is to put everything aside and take a break from the market. When the break is over, the temporary gains and losses have become the past, and the inflated mind has calmed down, shedding the burdens of thought. I believe the efficiency of investments will improve. There is a saying: 'A general who does not rest is not a good general.' Not understanding how to rest and recuperate makes it impossible to talk about breaking through and capturing cities.
12. Patience is also an investment
There is a saying in the investment market: 'Patience is a form of investment,' but I believe very few investors can do this or truly understand its meaning. For those engaged in investment work, it is essential to cultivate good patience and endurance. Patience is often a 'multiplier' for investment success, affecting whether the final result is positive or negative. Many investors do not have low analytical abilities or lack experience; they simply lack patience, leading to premature buying or selling and unnecessary losses. Therefore, every investor entering the cryptocurrency market should consciously recognize that patience is also an investment.
13. Let the past prices remain in the past
'Past price levels' are often a significant psychological barrier to overcome. Many investors fall into erroneous investment judgments due to being influenced by past price levels. Generally speaking, after seeing high prices, when the market falls, they feel quite uncomfortable with the new low prices. Even when various analyses indicate the market will continue to decline and the investment climate is dire, investors often do not sell their holdings at these new low price levels but feel they are 'low' and have the impulse to buy, resulting in being trapped after purchasing. Therefore, investors should remember: 'Let the past prices stay in the past.'
14. Stop-loss position, be brave to cut losses
Set a stop-loss position (this is the point where you have reached your maximum acceptable loss). Once the market reverses and the price falls to the stop-loss point, be brave enough to cut your losses. This is a very important investment skill. Due to the high risk of Bitcoin, to avoid the loss caused by investment mistakes, we should set a stop-loss order every time we enter the market, meaning if the exchange rate drops to a predetermined price level and may continue to decline, immediately execute the trade. This way of operating limits the loss to a manageable level, preventing it from expanding further and leading to total loss. Because even if you cut your losses for a moment, the investment capital is still there; as long as the green mountains remain, there is no fear of not having firewood.
15. Don't put all your eggs in one basket
Engaging in contract trading, one must act within their capacity and must never place all bets on one outcome, investing all of their savings or entire fortune as if it were a huge gamble. Because in such cases, if the market situation is mispredicted, it can lead to significant losses or even being unable to recover. The wiser approach is to implement a 'pyramid adding' method, first making a partial investment; if the market becomes clear and favorable, then increase the investment. Additionally, one must be wary of developing a reckless mindset during adverse market conditions.
16. Don't make mistakes for a few points
In Bitcoin trading, do not blindly pursue round numbers for profit. In practice, some people set a profit target for themselves after establishing a position, like wanting to earn enough 200 dollars before leaving. They constantly wait for that moment. After making a profit, sometimes the price is close to the target, and there is a good opportunity for profit-taking, but they miss the chance because they are waiting for a few more points to reach the target, thus losing the best price. Remember, it is not worth making mistakes just to fight for a few points.
17. When the situation seems unfavorable, turn around and strike back
Sometimes trading with the market, if entering when it's already near the end, be cautious that once a reversal occurs, and the situation seems unfavorable, you must strike back. For example: buying in a bullish market, but the price fails to break out. If the price then rapidly drops, do not panic; it is best to reflect. If you can confirm the current reversal, immediately cut your losses and strike back.
18. Establish positions when looking for breakthroughs in market conditions
Market conditions refer to a narrow range of price fluctuations where buying and selling forces are evenly matched, temporarily stuck in a tug-of-war situation. Whether in a rising or falling market, once market conditions end and break through resistance or support levels, prices will surge forward. For experienced investors, this is a good opportunity to establish positions. If the market conditions belong to a long-term threshold, the profits from positions established during the breakthrough will be substantial.
19. Be careful of rebounds after a sharp drop and adjustments after a sharp rise
In the Bitcoin market, sudden price increases or decreases do not rise or fall like a straight line; rapid rises will always be followed by corrections, and sharp falls will also rebound. The extent of adjustments or rebounds is quite complex and not easy to grasp; therefore, after the exchange rate suddenly rises by two or three hundred points or five or six hundred points, one must be especially cautious. It is better to rely on observation rather than rashly follow.
20. Learn to control risks
The Bitcoin market is a highly risky market, and its risk mainly lies in the many variables that determine Bitcoin's price. Although there are now various theories and doctrines regarding Bitcoin's volatility, market fluctuations still often catch investors by surprise. For investors and operators in the Bitcoin market, it is especially important to learn about risk probabilities. In other words, in Bitcoin investment, it is necessary to fully understand the risks and benefits, the probabilities of winning and losing, and several major issues of prevention. If there is no accurate understanding of risk control, trading Bitcoin casually will inevitably lead to losses.
This is the trading experience shared by Lao Bo today. Many times, you miss out on profitable opportunities due to your doubts; if you don't dare to try boldly, to engage, to understand, how will you know the pros and cons? Only by taking the first step will you know how to proceed next. A cup of warm tea, a piece of advice, I am both a teacher and a chatty friend.
Meeting is fate, knowing is destiny. Lao Bo firmly believes that fate will bring people together, while missed encounters are destiny. The journey of investment is long; the gains and losses of the moment are just the tip of the iceberg. It must be understood that even the wisest can make mistakes, and even the foolish can find gains. Regardless of emotions, time will not stop for you. Pick up your inner troubles and stand up to move forward.
Lao Bo only engages in real trading; the team has positions available for those who want to join.
