After several years in the cryptocurrency world, I've climbed from 3,000 yuan to 100,000 yuan, and the pitfalls I've encountered could fill a blood-and-tears story. Making money isn't that mysterious; the key is finding the right path and not blindly following the crowd.
First, understand the rules of the trade: Choose between spot and futures trading models that you can master. Some people thrive on slowly accumulating spot positions, while others prefer the quicker in and out of futures trading. Forcibly imitating others will only lead to faster losses.
I'll share a few strategies I've personally tested and proven effective:
If you encounter a coin that's been falling for nine consecutive days, boldly buy the dip on the tenth day—market makers typically don't last more than nine days, making this the most cost-effective time to enter the market. But remember, don't be greedy; trial and error with a small position is a safer strategy.
If a coin has been rising for two consecutive days, be sure to reduce your holdings. Making money in the cryptocurrency world relies on timely profit-taking, not holding on to it. I've seen too many people go from profitable to losing money simply because they couldn't bear to sell.
If a coin has been sideways for six days and then suddenly surges in volume, jump in immediately. This is a sign that the main force is about to start. The previous sideways movement was all about surreptitiously accumulating shares, waiting for this breakout point.
If you haven't earned back your transaction fees the day after buying, sell immediately. Don't be sad about the small loss; the time cost is far more valuable than that. Waiting will only lead to missed opportunities.
Veteran traders know the "3, 5, 7" rule: the third-highest performer tends to break into the top five, and the fifth-highest performer has a high probability of breaking into the top seven. But 90% of people fail because they "wait for their investment to be recouped." Don't hesitate to switch.
There's also a quirk in quantitative mechanics: a coin that's been rising for four consecutive days will likely crash around 3:00 PM on the fifth day. Keep an eye on this timing and be prepared.
A few other life-saving tips: Invest regularly, regardless of price fluctuations; simply buy regularly to spread your costs. Hold on to the coins you like and don't be scared off by short-term fluctuations. Most importantly, only invest with money you can afford to lose, and never use your living expenses—protecting your principal is the only way to have a chance of a comeback.
Making money in the cryptocurrency world relies on brains, not luck. These strategies may seem simple, but those who can execute them effectively have already made it big. Remember, stability is better than anything else.
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