80,000 to 10 million: Practical Insights from the Cryptocurrency Market

In early 2019, with 80,000 as my principal, I ventured into the cryptocurrency market just as the bear market was coming to an end. At that time, Bitcoin was hovering around 3,000 USD, relying on the iron rules forged in the waves of rises and falls, as well as the technical analysis skills honed day after day.

The core of these iron rules is 'respect the market and maintain a bottom line.' I set a strict rule for myself: I would only invest idle funds, and the position of a single cryptocurrency would never exceed 30% of my total capital.

During the black swan event in 2020, mainstream coins plummeted by 40% in a single day. Because I had previously converted 50% of my position into stablecoins, I not only avoided being heavily trapped but also managed to buy in at lower prices and seized the opportunity for subsequent rebounds. There was another instance when a friend highly recommended a new coin claiming to have 'hundredfold potential.' After researching, I found its white paper full of flaws and decisively rejected it. Later, that coin indeed ran away just half a month after its launch.

Technical analysis must be viewed in conjunction with market sentiment. I spend time every day studying candlestick charts, becoming very familiar with indicators like moving averages and trading volume.

When the price of a coin breaks through a key resistance level and the trading volume simultaneously increases, it is often a good entry signal; conversely, when the price falls below the support level but the trading volume shows no significant change, it is highly likely to continue declining.

In 2021, when Ethereum was around 2,000 USD, the 5-day moving average crossed above the 20-day moving average forming a golden cross, while market enthusiasm was rising. I decisively increased my position, and in less than half a year, Ethereum soared to over 4,000 USD.

Setting profit-taking and stop-loss points is key to preserving profits. I set my profit-taking points in three tiers, reducing a portion at 20%, 50%, and 100% gains respectively. This allows me to lock in profits while not missing out on potential future increases. Stop-loss is even stricter; once the loss on a single coin reaches 10%, I resolutely liquidate my position.

Once, I bought a altcoin, and after buying, it started to drop. At the 10% stop-loss line, I reluctantly sold. A few days later, that coin dropped by 80%, and this operation saved me from disaster.

Over the years in the cryptocurrency market, I have seen too many people becoming wealthy overnight, as well as many who instantly went to zero. From 80,000 to 10 million, there is no shortcut; only by adhering to the iron rules, refining skills, staying clear-headed in greed, and seeing opportunities in fear can one stand firm in this rapidly changing market.

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