I entered the crypto world in 2017, and now it’s the eighth year. I've paid a lot of tuition and taken a lot of detours. But today, I can support my family through cryptocurrency trading and freely choose my lifestyle, not because of talent, but because of the little experience I summed up from my heavy losses.
I gave up on funds back then because – the crypto world has a low threshold, strong liquidity, and quick profits. Although the risks are high, to be honest, that feeling of overnight wealth is something traditional finance cannot provide.
Trading cryptocurrencies vs funds, what’s the difference?
In one sentence: one feels like riding a roller coaster, the other like taking a bus.
Trading cryptocurrencies: exciting but dangerous.
30% daily price fluctuation; those with weak hearts really can’t handle it.
Policy uncertainty; changes can happen at any time domestically.
High technical threshold; if you don’t understand smart contracts, you are a sitting duck.
Funds: stable but slow.
Stable returns, suitable for a laid-back approach.
Depends on the fund manager's level; sometimes it's no different from blind betting.
If you want to redeem, you still have to wait; in a big drop, you really might not be able to escape.
So how to choose?
Can you accept a short-term loss of 30%, but also possibly earn 5 times? Then you are suitable for the crypto world; if you just want a stable annualized return of 5-10%, then buy a fund.
In the cryptocurrency trading industry, position management > technical analysis.
Honestly, I've seen too many people who can read charts and do T-trading, but in the end, they all fail due to heavy positions and all-in bets.
Here are a few tricks I often use, let me share:
1️⃣ Build positions in batches
Don’t go all in at once, always divide into 5-10 parts to build positions. If it drops, don’t panic; if it rises, you can lock in profits.
2️⃣ Stop-loss and take-profit rules
Set the rules before entering the market: stop-loss at 10%, take-profit at 20% and exit. Execution is more important than judgment.
3️⃣ Funnel-style bottom-fishing (suitable for left-side trading)
10% trial position, if it drops by 10%, add 15%, if it drops again, add 30%. Always remember: leave some room.
4️⃣ Pyramid-style position building (suitable for bull markets)
Start with heavy positions, then gradually add as it rises; the more it rises, the less you add. Ride the main upward trend and avoid high position risks.
A few last words of truth:
Always keep 30% cash on hand; it can save your life and help you bottom-fish.
Don’t trust 'insider information'; the more you believe it, the faster you will get harvested.
Withdraw profits; only real numbers are true.
Trading cryptocurrency is not a sprint; surviving is the marathon that has a future.
Money earned by luck will eventually be lost through skill.
Finally, thank you for watching! Follow A Xu to avoid getting lost! I hope my years of accumulated experience and lessons in the crypto world can help you avoid detours and double your assets!
Continued attention: BCH MYX ILV BNB ETH ENA
