Making money in trading boils down to one sentence: buy when it's cheap, sell when it's expensive. Sounds like nonsense? But 90% of people in crypto can't do it. Why?
Afraid of missing out when it rises, FOMO into high prices;
Afraid of going to zero when it falls, cutting losses and running;
No patience during sideways trading, randomly switching assets.
The final result is: a flurry of operations like a tiger, but when you look back, you’ve lost everything.
1. Hoarding coins: the dumbest method, the most profitable.
Those who really make big money in crypto are often the ones who 'buy and forget'.
Typical case: BNB
Launched in 2017, it was 1 dollar each, soon dropped to 50 cents, labeled as 'junk coin'.
7 years later, it peaked at 721 dollars (over 4000 times).
Those who criticized back then have long left, while those who hoarded have achieved financial freedom.
Core logic:
Don't pursue precise bottom fishing and top escaping (that's what gods do);
Only eat the fattest part in the middle of a bull market (for example, start dollar-cost averaging after a 80% drop, sell in batches after a 3-5x rise);
Time is a good thing, holding on is better than anything.
2. Beware of the 'get rich quick trap': the principal is your real father.
What crypto lacks the most is 'stories':
"This coin will replace ETH!"
"That project is the next hundredfold coin!"
"With big names on board, it's guaranteed profit!"
And the result? 99% of coins eventually go to zero. Your principal is real money, don’t gamble on 'falling pies'.
How to avoid pitfalls?
Only play with BTC, ETH, BNB, and other coins that have survived bull and bear markets;
For new coins and small coins, invest at most 5% of funds (if you lose it all, it won't hurt);
Don't believe in 'all in to get rich', that's a gambler, not an investor.
3. Is it a bull market now? Look for signals.
Big names' movements:
Trump's wallet was revealed to hold several million dollars worth of ETH;
BlackRock, Fidelity, and other institutions are frantically buying BTC and ETH.
Market characteristics:
BTC breaks 100,000 dollars, ETH stands above 4,000 dollars;
But the volatility is still high, with daily swings of 10% being normal.
Conclusion:
It's a bull market, but it might be mid to late stage;
Don't chase highs, wait for a pullback to buy in batches.
4. Lifeline: choose the right exchange.
Only trust two exchanges:
Binance (Binance) - the largest globally, with the best liquidity;
OKX - an established exchange with high security.
Other exchanges are to be avoided:
Small exchanges have high risk of running away (like FTX's collapse);
Sketchy exchanges are like a scam (money disappears upon deposit).
Remember:
Choosing the wrong platform makes any strategy useless;
Binance/OKX may not be 100% safe, but it's a thousand times more reliable than others.
5. Ultimate strategy: buy low, sell high + patience.
Dollar-cost averaging in a bear market: BTC drops to 30,000 dollars? ETH drops to 2,000 dollars? Buy in batches;
Sell in batches during a bull market: sell some after a 3x rise, sell more after a 5x rise;
Never go all in: keep cash on hand for buying the dip;
Filter out the noise: don’t pay attention to whether others shout 'the bull is here' or 'the crash is coming', follow your own rhythm.
Final sentence
The secret to making money in the crypto world is just four words: live long enough.
Don't be greedy, take profit when you can;
Don't panic, dare to buy when it drops significantly;
Don't self-sabotage, stay away from junk coins and sketchy exchanges.
If you stick to this 'dumb method', you've already outperformed 99% of the retail investors.
People are more important than anything! If you are still wandering in confusion, why not take a look at @crypto Guang Ge to guide you through every wave of the bull market.