After 10 years in the cryptocurrency world, I lost 700,000 yuan in the first three years, and my family was on the verge of collapse. My wife filed for divorce, and I locked myself in my room for two months, afraid to see anyone. It wasn't until the fourth year that I took a gamble with my remaining 300,000 yuan. I quit my job, reviewed my past, and clung to the advice of established investors. Only then did I slowly claw my way out of the red ink. By combining short- and medium-term investments with discipline, I built my account to over 50 million yuan.
The secret to survival in the cryptocurrency world lies in the mantras and ironclad principles forged by seasoned investors with their own hard-earned money. Whether you're a beginner or a seasoned trader, mastering these principles can save you at least five years of hard work.
1. 9 core operating tips: Choose the right time to act
Buy horizontal and pit instead of vertical, the selling point is in the boiling point
Sideways consolidation (such as BTC trading sideways between 38,000 and 42,000 for more than a month in 2024) and falling out of the "deep pit" (falling to 35,000) are buying points; when the market is in a frenzy (the circle of friends is full of "Bitcoin breaks 100,000"), it must be a selling point in batches.Continuous small increases are real increases, while continuous large increases require exiting the market.
A slow daily increase of 2%-5% (ETH slowly increased from 1800 to 2200 in November 2023) indicates a steady influx of funds; a rapid increase of more than 10% for three consecutive days (a certain altcoin doubled in three days) is often the end point of short-term speculation.If it rises sharply, it will fall back. Don’t dig a deep hole and buy more.
If the price suddenly rises by more than 20% (BTC rushes from 50,000 to 60,000), it will definitely fall back. Wait until it falls back to 55,000 before buying again. Without a deep decline (a certain platform coin stays at $20 for a long time without touching $15), you must not hold a large position.The main rise is about to peak, sell quickly when it drops and sell slowly when it rises.
During the main rising period, when the price accelerates (SOL rises from 100 to 250 in 3 days), it is not far from the top. If it drops sharply (drops 15% in a single day), you should sell it quickly. If it rises slowly (BTC slowly climbs from 30,000 to 50,000), you can sell it in batches (sell 10% if it rises 5%).A sharp drop without volume is a threat, a slow drop with large volume is a sign of quick withdrawal
If the price drops sharply but the trading volume does not increase (the bar is about the same as usual), it is the market makers who are cleaning up the market; if the price drops slowly but the volume increases (the bar becomes thicker and thicker), it means that large funds are fleeing and they must leave the market.When the price breaks through the lifeline, do not hesitate to trade in the short term
The "lifeline" is the 60-day moving average. If the daily line remains stable for more than 3 days (for example, if BTC breaks through the 60-day line and stabilizes), you can enter the market for swing trading and decisively liquidate your position when it falls below.Look carefully at the daily and monthly lines, and follow the main force to build positions
The daily line looks at the short term, and the monthly line looks at the long term: if the daily line rises but the monthly line falls, it is a rebound. If the monthly line rises + the daily line rises, it means the main force is increasing its position, and it is more stable to build a position at this time.The price is rising without volume, the main force is tempting to buy, don't stand guard
An increase in price while the volume shrinks (a certain altcoin increases from $1 to $1.5 but the volume shrinks) is a lure to buy more, and chasing high prices will lead to being trapped.The new low of shrinking volume is the bottom image, and the incremental recovery is to enter the market
Hitting a new low but with shrinking volume (BTC fell to 16,000 in 2022 and the volume shrank) is a bottom signal; followed by a large increase in volume (the volume increased to 1.5 times the previous level), which is the entry point.
2. 5 K-line tips: Understand the K-line to avoid pitfalls
Don't sell if it doesn't go up, don't buy if it doesn't go down, don't trade if it goes sideways
Don’t sell until it reaches the resistance level (such as BTC 40,000), don’t buy until it reaches the support level (35,000), and watch more and do less when it goes sideways.Buy Yin, not Yang; sell Yang, not Yin.
Buy when it falls below the negative line (ETH falls 3%), and sell when it rises above the positive line (rises 5%). It is easier to make profits by operating against emotions.High and low consolidation, wait a little longer
If the price goes sideways at a high level (may fall) or sideways at a low level (may rise), do not move when the direction is unclear, and follow up after a breakthrough.If the price goes sideways at a high level and then rises again, sell it quickly; if the price goes sideways at a low level and then reaches a new low, buy it with all your warehouse.
A surge after sideways movement at a high level (in 2021, BTC surged to 69,000 after sideways movement at 60,000); a new low after sideways movement at a low level (in 2023, BTC fell to 15,000 after sideways movement at 16,000) is a good time to invest heavily.Admit your mistake before you buy, and buy less rather than more.
Set a stop-loss before buying. It is better to have a light position (no more than 30% of a single currency) than to go all-in. Newbies will be trapped if they have a full position.
8 Iron Laws: Survive to Make Money
Stop trading after stop loss
Don’t get carried away when you frequently stop losses. Pause trading and review loopholes. Opening orders rashly will only lead to greater losses.Abandon the pursuit of quick success and instant benefits
Trading is not a get-rich-quick game. Wealth is built on steady progress. Going all-in with a heavy bet will lead to failure.Go with the flow
In a one-sided market, don't go against the trend to buy at the bottom and sell at the top (such as shorting in a bull market and going long in a bear market). Only by following the general trend can you keep the rhythm right.Profit-loss ratio of at least 2:1
Calculate before placing an order: the profit margin must be more than 2 times the stop loss, and do not make a trade where you earn 10 points and lose 20 points.Quit frequent trading
Newbies should not chase fluctuations randomly. Before they have developed a keen eye, they should trade less and trade more carefully. Only by controlling their hands can they live longer.Only make money within your cognition
Never touch currencies that are beyond your knowledge (white papers you cannot understand, fuzzy logic), and it is more reassuring to delve into familiar areas.Never carry an order
Contract trading lesson 1: When the market goes in the opposite direction, don’t imagine that the price will “go back up”. Stop loss in time (a 10% loss on a single currency must be cleared) is the lifeline.Don't get carried away when you're profitable
When making money on paper, you must be more disciplined and stop profits according to the strategy (such as reducing the position by 30% when the price rises by 50%). Pride will lead to failure.
Finally, I want to say
In my early years, I stared at the market for three days and three nights without sleep. A 5-point rise would make my heart race, and a 3-point drop would make me want to sell. It took three blowouts before I understood: the rise and fall of the K-line reflects human greed and fear—just as some rush to buy, others wait to dump.
Watching the market now is like watching a chess game in a teahouse: no matter how wildly it rises, it doesn't count as a profit, and no matter how hard it falls, you won't liquidate your position. Those concepts that claim to "disrupt the world" are mostly Ponzi schemes in disguise; conversely, the old currencies often dismissed as "junk" are more resilient in the end.
There's no myth in the cryptocurrency world. It's just that some people have learned to close their eyes amidst the clamor, waiting for the tide to recede before picking up shells. Those who rush to shore often end up choking the most.
I'm Brother K, a 10-year veteran in the cryptocurrency trader industry. If you find this helpful, please like and follow me, and I'll help you avoid more pitfalls.
