#币安HODLer空投TREE How to turn 100,000 into 20 million? My comeback journey!
Hello everyone, I was born in 1988 and accidentally came across cryptocurrency trading in 2015. At first, I lost hundreds of thousands as if I were gambling. But later, I began to study seriously, checking information everywhere, learning related knowledge, and continuously improving my skills. After a few years of ups and downs, I finally welcomed a turning point in 2024. I started my comeback journey. In just over two years, I went from 100,000 to now eight figures!
Core principles - three don'ts of trading cryptocurrencies:
Avoid buying during price increases: When market sentiment is high, prices are often inflated. Conversely, buy during market pullbacks or declines, using fear in the market to acquire assets at lower prices.
Diversify risk: Don't put all your funds into one currency. Diversified investments can spread risk; even if one currency performs poorly, it won't deal a fatal blow to your overall investment.
Control position size: Full margin trading will limit your flexibility. Keeping a certain amount of cash reserves allows for quick strategy adjustments when market trends do not meet expectations.
Six rules for short-term cryptocurrency trading:
After high-level consolidation, there are often new highs; after low-level consolidation, there are often new lows: High-level consolidation usually signals a new round of increases, while low-level consolidation may lead to further declines. Wait for the trend to clarify before acting.
Do not trade during consolidation: When the market lacks a clear direction, the best approach is to wait and see until the trend becomes clear.
Buy on down days, sell on up days: This contrarian strategy involves buying when the market is generally bearish and selling when the market is generally optimistic, reducing the risk of buying high and selling low.
Judge the rebound strength based on the speed of the decline: A rapid decline is often accompanied by a quick rebound, while a slow decline may lead to a more moderate recovery.
Pyramid-style building: Gradually increase the position size, especially when prices drop, to increase purchasing power and lower costs, laying the foundation for future profits.
After a sustained rise and fall, there must be consolidation: After a long period of price movement, there will always be a consolidation phase with smaller fluctuations. At this time, it is not advisable to rush in and out; wait for the next trend signal.
Real cryptocurrency trading experts simplify things; they repeat simple tasks. This short-term trading model has a win rate of up to 98.8%, and learning it can easily turn 100,000 into 10 million, focusing solely on this single model!
1. Position splitting is not metaphysics, it is a life-saving charm!
How to split positions?
For example, if you have 30,000 USDT, split it into 3 parts, each 10,000 USDT. Use only 1 part for each opening, keeping the rest locked in the wallet as if it doesn’t exist.
Remember two numbers: Bitcoin maximum 10x, altcoins should not exceed 5x!
Even if you see a strong surge coming, don’t be greedy! The higher the leverage, the easier it is for the exchange to wipe you out with a single spike.
For example: If you open a 10x position with 10,000 USDT, a 10% drop would evaporate your account instantly. But if you only use 5x, you need a 20% drop to trigger liquidation, doubling your margin of error.
Position splitting has a hidden function: it curbs emotional trading!
When a person loses money, they are prone to 'revenge trading', resulting in even greater losses.
After splitting positions, even if one day you irrationally blow up one part, the remaining two parts can help you stay calm. Is losing 10,000 the same as losing 30,000 in mentality?
2. High leverage = chronic suicide, don’t be stubborn!
There will always be those who are unconvinced: 'Old Wang next door made a BMW overnight with 100x leverage, why can't I do it?'
Brother, Old Wang won't tell you he has blown up 10 positions, nor will he say that his BMW was exchanged for a house deed.
The truth about high leverage is twofold:
1. Needle spikes are meant to teach you a lesson: Exchanges love those who open high leverage; a spike in the middle of the night can take your entire capital.
2. Mental collapse: Opening 100x, a 1% price fluctuation makes you restless; can you still operate rationally?
Remember:
- Bitcoin exceeding 10 times = life gamble.
- Altcoins over 5x = giving away money.
The lower the leverage, the more willing you are to hold positions and the more you can capture the trend!
Three major ways to die in counter-trend trades:
1. Stubborn type: 'I don't believe it won't drop!' - Result is total loss of capital.
2. Averaging down type: 'If it drops again, I will add to my position to lower the average!' - Resulting in being completely out of resources.
3. Mystical type: 'The K-line has formed a golden cross, it must reverse!' - The dealer counters with a big bearish candle to teach you a lesson.
Correct approach: Better to miss out than to give away your capital!
The market is going crazy? Just watch! Missing out doesn’t mean losing money, but losing money against the trend can be fatal.
Beginners need to understand: why monitoring for 24 hours is useless! A comprehensive guide to the strategies of major players!
'Slow knife cutting big meat' is not like Trump's strategy to pressure Ukraine, which was blown up last night; there's also a style that major players love to use to harvest retail investors.
Don't be overconfident; this is not an alarmist warning! If you still can’t tell the difference between 'offloading' and 'wash trading', then you are really not far from being eliminated by the market! 1. When the fast line of the MACD indicator crosses above the slow line to form a golden cross, this is a clear buy signal. Moreover, the higher the position of the golden cross, the stronger the implied buy signal. A golden cross formed above the zero line is more potent, while one below the zero line is relatively weaker.
2. When the slow line of the MACD indicator crosses below the fast line to form a death cross, this is a strong sell signal. The lower the death cross occurs, the stronger the sell signal. A death cross above the zero line is a weak death cross, while one below the zero line is a typical death cross.
For beginners, the MACD indicator has unique value. It can help investors accurately capture the starting point of a strong upward trend while also having a certain bottom-fishing function.
At the same time, through the signals of the golden cross and death cross, the MACD indicator clearly provides buy and sell points, offering strong support for investment decisions. Mastering the techniques of using the MACD indicator is undoubtedly an important step for novice investors on the road to successful investment, greatly increasing the probability of investment success.
Of course, just looking at this point is not enough for you to swim in the crypto market.
Why do 9 out of 10 people lose in crypto contracts? After reading this contract operation guide, you will be the only one!
Table of contents:
1. Contracts are not gambling.
2. Find the method that suits you best and the market environment.
3. Position, volatility, holding time - recognize the true nature of contract and leverage risks.
4. Leverage has position limits; you cannot open positions worth thousands with 100x leverage.
5. Entering only 10% with 100x leverage does not count as light trading; ten times is ten times!
6. Recognize the limits of your current method.
7. Stop losses; don’t hold positions!
8. As long as you keep an eye on the market, effective strategies will have a chance to work again.
9. Keep trading records. 10. If you have not touched contracts or entered the crypto space before reading this article, don’t just join after reading!
1. Contracts are not gambling.
Contracts change the nature of risk. For example, if the price of a coin rises by 1%, the player's invested assets double; if the price drops by 1%, the player's assets will be liquidated, losing all capital. The difference between rich and poor is always just a thought and a moment away. It is actually similar to futures and stocks (margin trading), although some friends believe these are also gambling...
When I was initially losing money, I had the mindset that 'contracts = a gamble with some rules'. With a capital of one or two hundred USDT, I directly opened a 50x leverage.
First trade, aiming for a 5% profit, with a maximum interim loss of 75%, holding the position, successfully recovering and taking profits.
Second trade, aiming for a 2.5% profit, with an interim loss of 75%, holding the position, resulting in liquidation and zero balance.
Hoping for a 2.5% profit but losing 100% is genuinely bad luck; however, it seems that stepping into the big pit of holding positions this early was quite lucky. If such a liquidation had happened when the capital was several thousand or even tens of thousands...
I might become one of those who always say 'contracts are gambling'. As a relatively more unfortunate group (having lost money in liquidations), they will refuse to further understand contracts or even digital currencies.
Then I switched to futures or stocks and continued to lose.
2. Find the method that suits you best and the market environment.
Through my own exploration, I chose a relatively low-risk operation method.
Prepare a fund you can bear the risk with, open a 5x contract, and buy one-fourth of that fund.
For example, my FIL operation was prepared with 200U capital, bought 50U, and opened a 5x contract.
Why operate this way? Because buying 50U means you still have 150U of margin inside; the asset must drop 40% to trigger a liquidation.
This way, you won't accidentally get liquidated. Many of my friends love to play high leverage at 10x or 20x, which is exhausting and requires constant monitoring, making it hard to sleep at night.
Ultimately, choosing a 5x contract and setting a stop loss means you will hardly encounter a liquidation.
As for taking profits, my strategy for spot trading is to withdraw after making a 30% profit, so for contracts at 5x, it’s 150% before withdrawal.
3. Recognize the true nature of contract and leverage risks.
An equally important factor that influences risk but is often overlooked: holding time. Profit and loss = holding time * volatility * position, which can roughly express the risk as above, especially the holding time.
While 10x leverage is certainly high risk, entering for 5 minutes of short-term trading and monitoring closely is completely incomparable to going to sleep directly with 10x leverage. Some of the latter even go so far as to not set a stop loss, making the risk almost like giving away money. When I first tried not to exceed $50, one of the reasons I used 10x or 20x leverage was that the holding period was short, so I could execute hundreds of trades while controlling the risk.
Altcoins fluctuate more than Bitcoin; contract fluctuations exceed spot trading, which is something to keep in mind before beginners open positions. Some friends have told me that contract risks are high, yet they immediately go all-in chasing small-cap altcoins without even reading their white papers, which actually carries far more risk than playing contracts normally. However, it's worth mentioning that misjudging the market direction can also lead to significant losses, for example, FIL futures surged from 25 to 30 within minutes unexpectedly, resulting in a single loss exceeding one-third of my capital.
Position is the most apparent factor; the more positions you hold, the greater the risk. But I've seen claims that 'as long as you keep trading contracts, you will inevitably slide towards 100x leverage,' even saying they are doing 100x leverage on altcoins, which touches on another point:
4. Leverage has position limits; you cannot open positions worth thousands with 100x leverage.
At least for Binance's USDT-denominated contracts, this is the case. All exchanges have maximum position limits; taking BTC as an example:
Everyone knows what 125X means, but 'maximum position' of 50,000 USDT means you can only truly use 125x leverage when you have less than 400 USDT (50,000/125). If you don't change your leverage, even if you have 50,000 USDT, at most you can hold 1.25 BTC (just as Bitcoin hit 40,000). If you only open this one position, stating 125x is correct, but you are effectively using 1x leverage, which is equivalent to nothing!
Correspondingly, a 100x leverage on BTC can only use a maximum of $2500; for ETH 100x leverage, the maximum can only be $100; altcoins do not have 100x leverage, most are capped at 50x, as shown in the picture below.
You can only use $100 to open 50x.
The maximum position you can hold is determined by leverage, exchange scale, and coin size. Binance is already the largest digital currency exchange in the world. If the multiples you are offered exceed this too much (like allowing you to use 10,000 dollars for 100x BTC leverage) or if there are even 200x leverage offers, it is very likely a scam from a black exchange!
Since we are talking about leverage, it leads us to the next point:
5. Entering only 10% with 100x leverage does not count as light trading; ten times is ten times!
Unless you have multiple positions, entering with 10x leverage fully funded is no different; moreover, only those who can understand individual trades can manage multiple positions.
Position/balance is the actual leverage being used; please measure risk based on this.
Six, recognize the limits of your current method.
Returning to my own trading.
In November, a wave of YFI and CVC market movements grew my account from $700 to $3000+ (the previous $200 hole was also filled with FIL); then on the two days after GRT contracts were launched in December, the volatility was large, and I earned a full $7000. At this time, the total number of trades was 4623, with the highest single-day profit being $2769 (the day GRT was launched).
Ultimately, I suffered my first single day loss exceeding a thousand, approaching -$1200, and at one point even lost two thousand five hundred dollars. In the face of such market conditions, breaking my worst record made me reflect on my problems.
In the contract markets of mainstream cryptocurrencies such as Bitcoin and Ethereum, there is a severe lack of competitiveness; moreover, as the account grows, the profit margin from small positions with high frequency will become more limited. After all, humans cannot compete with quantitative robots, and the advantages of manual trading do not lie here.
Seven, stop losses; don't hold positions!
The following is the profit chart up to before the 519 crash.
In the early hours of February 1, many people agreed to buy XRP and hold it, with the condition that the first to close would be labeled a dog.
Buy XRP and hold; whoever closes first is a dog.
Although I didn't go long for this reason, I felt at the time that there might be market movement. I started leaning towards going long from 9:30, with low leverage just around 1x, but coincidentally caught XRP plummeting from 0.6 to 0.4 at 9:31. (Who said the first to close is a dog??)
Set the record for the highest single-day loss (over -$6000), with single losses exceeding a thousand and consecutively two trades (maximum -$1672.68);
Additionally, on the night of March 18, thinking ADA would rise, I made a long position with a similarly small size, but ADA suddenly plummeted, dropping from $1.4 to a maximum of $1.1, setting the record for the highest single loss (-$3549.10).
The reason these three trades did not cut losses is due to the belief that 'it will come back' and holding positions.
Once you can close positions, the extra time spent holding positions is only about ten seconds.
In extreme market conditions, holding a high-leverage position without stop loss is a luxury. I've seen friends who know the risks but still go to sleep without setting stop losses. From a profit perspective, they seem stronger than me, but the lack of awareness about cutting losses and stop losses has already predetermined their outcome.
As for unplanned averaging down, especially with leverage, the nature is even more severe. Unless your size is large enough to make a turn by yourself (like obscure altcoins) and you have ample trading experience, it will only lead to quicker liquidations than holding positions.
To reiterate: Taking profits can be situational, but stopping losses is essential!
Stop losses are a must!
8. As long as you keep an eye on the market, effective strategies will have a chance to work again.
This was told to me by a senior; if you see this while browsing Zhihu, let me know, I'll treat you to barbecue, haha.
Previously mentioned, the high-frequency low-position trading I excelled at initially becomes increasingly limited as the account grows larger. Not only that, but even the methods I modified based on account size have started to face limitations.
Although I have never abandoned it, the opportunities used are indeed few. In the absence of market activity, while I am profitable but not significantly, I occasionally miss the times of rapid progress, the first time I used short-term trading to steadily increase my balance, taking a small account to dream big.
May was not smooth; the second wave of Dogecoin's violent fluctuations did not yield the profits expected. After two weeks of stagnation, realizing I should be doing better but not knowing how to proceed, even the big drop at 7:30 PM on May 19 yielded no results.
When the real 519 crash came, the website became slow, TradingView's candlestick charts lagged by several minutes, transaction volume counting froze (actual transaction volume surpassed any previous market condition, including last year's 312), and even the official website's one-minute candlestick chart showed several nearly parallel red candles after it rebounded.
I instinctively thought of the market conditions that arose when I initially traded high frequency. However, last time it was altcoins; this time it’s Ethereum contracts with trading volumes several orders of magnitude higher, second only to Bitcoin.
From the first counterattack, I went long on 30 ETH and immediately closed after floating profit.
The second position, 30 ETH, floating profit, closed.
50 ETH, 60 ETH, the website price was somewhat lagging, paused for a moment, tested the speed with 0.003 ETH, found it could be done, then 30 ETH, 50 ETH...
Ethereum's movements were massive; although I wasn't too nervous, I must have been quite focused, as I didn't glance at the balance next to it.
When Binance was completely stuck, I stopped and realized that I had already exceeded my target.
………………………………
On the day of Doge, I worked hard all day to earn ten thousand dollars, and I was so happy at night that I almost couldn't sleep, although I haven't had a day with such earnings since then.
As a result, that day, the previous record was broken in the most unexpected time and in the most unexpected yet reasonable trading way—despite not using any trades with more than 2.5x leverage and none yielding more than 20%.
Suddenly, it felt unreal. After getting stuck on Binance, I chatted with friends who I had known for years and who had recently started trading contracts, complaining to me about how badly their spot positions had dropped. We chatted casually until dawn when his spot positions almost rebounded, and he finally went to sleep. Afterward, I took a screenshot and transferred most to my spot wallet since I currently don't need that much money.
The only regret that doesn't count as regret is thinking of a previous article I saw on Zhihu (becoming rich from Bitcoin contracts, thus vowing). The author intended to turn 1000 into a million, and I really hope I could find it to congratulate him.
As a result, I found out he had temporarily given up... This matter can only remain unresolved. I hope by the time he returns, the market will be more favorable.
9. Keep trading records.
Every day, I did several trades, how was the profit and loss situation, why I made or lost money, etc...
To be honest, I haven't done enough, but many traders who are better than me say doing it is very helpful, and my own records have also helped me at times. Although no method can guarantee profit (after all, as the number of trades increases, your opponents will definitely change their strategies), the market has too much uncertainty, but it can reflect your current problems quite well. The more you do, the more you will capture some current market rules.
Here are the trading statistics; during the integration process, there may have been cases where two trades were mistakenly counted together, but it doesn’t matter.
Total number of trades: 13866, average leverage: 2.06X, balance started from $1000 with an average leverage of 0.76X;
Capital weighted leverage 0.46X (i.e., total position divided by the sum of balances at each opening, avoiding the situation of opening a bunch of 20x leverage with small amounts to inflate the average);
There were a total of 25 trades with a profit exceeding $1000, and a total of 5 trades with a loss exceeding $1000, as mentioned earlier; the other two trades occurred on January 29 with Dogecoin and during the Ethereum surge on May 19.
Starting from $1000, in terms of percentage, there were 5 trades with a single profit exceeding 10%, the highest being 16.25% (ETH, 2.44X leverage), and no single loss exceeded 10%, with the highest being 8.58% (BTC, 46X leverage, which was the initial loss when BTC broke 40,000).
10. If you have not touched contracts or entered the crypto space before reading this article, don’t just join after reading!
Stock market risks are nothing compared to those in the crypto space; in terms of contracts, the traditional futures 'one-nine law' still applies!
Especially for those who have not entered the crypto space, this cannot be considered a good time. The 519 crash was caused by related policies, and one must be cautious of freezing cards and other issues. The picture below is forwarded, and its authenticity is unclear.
10% of people profit, 90% lose, but 90% of those who lose believe they are among the 10%.
Master these 9 major rules of the crypto space to become a millionaire!
1. Use spare cash to invest: When investing in cryptocurrencies, only use your surplus funds; never borrow money or take out loans to trade cryptocurrencies, as this carries too much risk.
2. Carefully select valuable coins: When choosing investment projects, carefully pick those with potential 'value coins' and establish a reasonable capital allocation plan. This is known as the 'sunny investment strategy,' making your investments more stable.
3. Gradual entry to cope with pullbacks: After entering the market, experiencing price fluctuations or pullbacks is very normal. Therefore, allocate your funds reasonably, buying in batches to reduce risk.
4. Diversify investments to reduce risk: Do not operate with full margin, allocate funds to different projects, so that even if a certain project has issues, other projects can help share the risk.
5. Stay informed: Regularly check crypto news and financial updates, so you can capture investment opportunities faster and make money quicker.
6. Go with the trend, don’t confront it head-on: When investing, do not confront the dealer or the market trend directly. Learn to follow the market trend and act accordingly to better seize investment opportunities.
7. Use contracts cautiously: If you choose to engage in contract trading, you must pay attention to controlling the leverage ratio. It is recommended to use leverage between 20 to 50 times; do not easily use 100 times leverage. Steady profits are the key.
8. Strictly control positions, don’t operate carelessly: Position control is key to investing. In uncertain situations, do not operate arbitrarily. Not operating means no risk, and thus no losses. At the same time, regularly check your asset status to ensure proper management.
9. Stay calm and clarify your entry and exit strategies: Maintaining a calm mindset during the investment process is very important. Know when to enter the market and when to exit. Experiences in the crypto space will help you grow continuously; mindset is even more important than execution.
Riding the wind with a sword, bringing people between heaven and earth, drinking wine joyfully; without wine, I am still crazy. I am from the imperial city and hope to bring some help to those lost in the vast crypto space; friends who agree can like and follow; I wish everyone’s accounts thrive!
Understanding cryptocurrency trading is similar: from losing seven times to breaking even and finally making a profit, it involves focusing without distraction and not being greedy for various profit models; steadfastly engaging in this one trading system will eventually turn it into your cash machine.
