I know a senior who has been in the cryptocurrency space for many years. He initially invested 100,000, and now his account value has reached 42 million. He once told me something that made me realize a lot.
He said: The cryptocurrency market, at its core, is an emotional market; most people are a crowd following the trend. As long as you can manage your emotions, this place can be a cash machine.
According to his experience, to truly make money in the cryptocurrency market, it relies on a few key points:
First, don’t be greedy for small profits, and don’t incur large losses.
It sounds simple, just eight characters, but the vast majority of people can’t achieve it in their lifetime. For example: you opened a long position at 20,000, and when it rises to 21,000, you quickly take profits, feeling happy with a 5% gain. But then the market continues to rise to 25,000. You only made 5%, but missed out on 50%. Then you remind yourself to hold next time. The next time, the price goes back to 20,000, you open a long again, and it rises to 21,000. This time you think you must hold for bigger profits, but it drops back to 20,000, or even below to 19,500, and you have to cut your losses. Many people struggle their whole lives in this cycle of being slapped in the face, unable to break free.
Second, only choose mainstream coins that have dropped significantly and are slowly starting to rise.
Don’t touch those flashy new coins. First, establish a bottom position with 10% of your capital, without guessing where the bottom is, just wait for it to stabilize before taking action. The method may seem clumsy, but it’s steady.
Third, wait for the trend to become clear, and then add 20%-30% during pullbacks.
Others always want to buy at the lowest point; I am different. I add when the trend is up, even if the price is a bit high, it’s still better than getting stuck halfway up.
Fourth, after every wave of increases, first withdraw your principal and half of the profits.
Let the remaining position fluctuate as it wishes; no matter how crazy the market gets, sell when it reaches your set target line, never be greedy. Money in your pocket is real profit.
With this simple method, last year he helped a friend who had previously lost over 600,000 recover not only his capital but also earn enough for a BMW X3 in six months.
It’s not bragging; there are too many smart people in the cryptocurrency market, but what’s lacking are the 'fools' who can control their hands and endure patience. When everyone else is chasing rising and falling prices, if you honestly follow the trend, you can pick up the money that others hurriedly drop.
Tap on my profile picture to follow me and never miss any updates! Let’s join the bull market feast together!