At the beginning of 2019, I entered the crypto world with 80,000 capital just as the bear market was nearing its end. At that time, Bitcoin was hovering around $3,000, and people around me advised me not to throw money into this 'scam.'
The transformation of account numbers today relies on the iron rules forged in the waves of rise and fall, as well as the technical analysis skills honed day by day.
The core of the iron rules is 'respect the market and maintain the bottom line.' I have set a strict rule for myself: I will only invest with idle funds, and the position of a single cryptocurrency will never exceed 30% of the total funds.
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 deeply trapped but also bought more at lower prices, seizing the opportunity for the subsequent rebound. There was another time when a friend strongly recommended a new coin claiming 'hundred-fold potential.' After studying it, I found its white paper full of loopholes and decisively rejected it. Later, this 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, mastering indicators like moving averages and trading volume. When the coin price breaks through key resistance levels and trading volume simultaneously increases, it is often a good entry signal; conversely, when the coin price falls below support levels without significant changes in volume, it is very likely to continue declining. In 2021, when Ethereum was around $2,000, 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 within less than half a year, Ethereum had risen to over $4,000.
However, technology is not omnipotent. In 2022, there was a coin whose candlestick pattern looked perfect, but at the time, the entire market was in a panic. I held back my impulse and did not buy, and later it indeed fell all the way down.
Taking profits and cutting losses is the key to preserving profits. I set my profit-taking points in three stages: reducing part of my holdings when reaching 20%, 50%, and 100%. This way, I can lock in profits without missing out on potential further increases. The stop-loss is even stricter; once a single coin's loss reaches 10%, I resolutely liquidate it. Once, I bought an altcoin, and after purchasing, it began to decline. I painfully sold it when it hit the 10% stop-loss line, and within a few days, the coin dropped by 80%. This action allowed me to avoid a disaster.
Over the years in the crypto world, I have seen too many people become rich overnight and too many others lose everything in an instant. From 80,000 to millions, there is no shortcut; only by adhering to iron rules and refining skills, staying clear-headed in greed, and seeing opportunities in fear can one stand firm in this ever-changing market.
