Stud artist
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As a newbie just entering the cryptocurrency world, let me get the unpleasant truth out front: this place can make you money fast, but you can lose it even faster! Don’t be fooled by the daily posts online showcasing people getting rich; that’s just survivor bias—many more are left with nothing but their underwear. So we need to figure out the ropes first and not go all in right away.
There are various ways to make money in the market, but fundamentally there are four types: short-term, medium to long-term, dollar-cost averaging, and quantitative trading.
1. Short-term:
Short-term trading means buying today and selling tomorrow, or even buying in the morning and selling in the afternoon, making small profits from price fluctuations. For example, if you see Bitcoin drop to $90,000, you quickly buy the dip, and when it rises to $92,000, you sell it immediately, making a profit that can buy you a meal. But this can be very exhausting, as you have to watch the market every day and understand things like candlestick charts and MACD indicators (sounds daunting, right?). The biggest pitfall is that it can lead to emotional decisions—if it rises, you might think it will go higher and hesitate to sell, and if it drops, you might stubbornly hold on, ultimately becoming a “cave dweller” (stuck at a high position).
Suitable for: Those with plenty of time, a steady mindset, and can handle the adrenaline rush of heart-stopping moments; ideally, you should be able to monitor the market at least three times a day.
2. Medium to long-term:
Medium to long-term investing isn’t just about buying and lying down! You need to research projects like you're picking a son-in-law: does this coin have real technology? Is the team reliable? Can it be successful in the future? For example, if you believe in Ethereum and think that Web3 (the next generation of the internet) will use it, then hold on tight. But the risk is, if you research incorrectly, or if a bad policy suddenly comes out (you know what I mean), you might lose half of your principal.
Suitable for: Those who don’t have time to watch the market and enjoy researching.
3. Dollar-cost averaging:
Dollar-cost averaging means that every month after you receive your salary, you set aside $500 to buy Bitcoin, regardless of whether the price goes up or down. It’s like a piggy bank; in a bull market, you can profit, and in a bear market, you can pick up bargains, leading to an averaged-out cost over time. For instance, if you started dollar-cost averaging in 2020, you’d definitely be smiling by now. But be sure not to choose junk coins.
Suitable for: Office workers and financial beginners.
4. Quantitative trading:
This sounds sophisticated, but it’s just using algorithms to buy and sell automatically. For example, setting a rule like “sell Bitcoin if it drops below the 20-day moving average” saves you from sleepless nights watching the market. But be careful! The waters are deep! Many quantitative strategies are actually tools for exploiting inexperienced traders, and newbies can easily pay an intelligence tax.
Finally, a hard-earned lesson: Don’t borrow money to trade cryptocurrencies! Don’t trust teachers who promise guaranteed profits with their signals! If you make money, remember to cash it out and buy some ribs to eat; realizing profits is what truly feels satisfying.
There are various ways to make money in the market, but fundamentally there are four types: short-term, medium to long-term, dollar-cost averaging, and quantitative trading.
1. Short-term:
Short-term trading means buying today and selling tomorrow, or even buying in the morning and selling in the afternoon, making small profits from price fluctuations. For example, if you see Bitcoin drop to $90,000, you quickly buy the dip, and when it rises to $92,000, you sell it immediately, making a profit that can buy you a meal. But this can be very exhausting, as you have to watch the market every day and understand things like candlestick charts and MACD indicators (sounds daunting, right?). The biggest pitfall is that it can lead to emotional decisions—if it rises, you might think it will go higher and hesitate to sell, and if it drops, you might stubbornly hold on, ultimately becoming a “cave dweller” (stuck at a high position).
Suitable for: Those with plenty of time, a steady mindset, and can handle the adrenaline rush of heart-stopping moments; ideally, you should be able to monitor the market at least three times a day.
2. Medium to long-term:
Medium to long-term investing isn’t just about buying and lying down! You need to research projects like you're picking a son-in-law: does this coin have real technology? Is the team reliable? Can it be successful in the future? For example, if you believe in Ethereum and think that Web3 (the next generation of the internet) will use it, then hold on tight. But the risk is, if you research incorrectly, or if a bad policy suddenly comes out (you know what I mean), you might lose half of your principal.
Suitable for: Those who don’t have time to watch the market and enjoy researching.
3. Dollar-cost averaging:
Dollar-cost averaging means that every month after you receive your salary, you set aside $500 to buy Bitcoin, regardless of whether the price goes up or down. It’s like a piggy bank; in a bull market, you can profit, and in a bear market, you can pick up bargains, leading to an averaged-out cost over time. For instance, if you started dollar-cost averaging in 2020, you’d definitely be smiling by now. But be sure not to choose junk coins.
Suitable for: Office workers and financial beginners.
4. Quantitative trading:
This sounds sophisticated, but it’s just using algorithms to buy and sell automatically. For example, setting a rule like “sell Bitcoin if it drops below the 20-day moving average” saves you from sleepless nights watching the market. But be careful! The waters are deep! Many quantitative strategies are actually tools for exploiting inexperienced traders, and newbies can easily pay an intelligence tax.
Finally, a hard-earned lesson: Don’t borrow money to trade cryptocurrencies! Don’t trust teachers who promise guaranteed profits with their signals! If you make money, remember to cash it out and buy some ribs to eat; realizing profits is what truly feels satisfying.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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