I entered the cryptocurrency market with 100,000, experienced the glory of making 10 million, and also fell into debt of 8 million. Now, with 200,000 principal, I achieved a return of 418134.86% from 2024 to 2025, earning over 42 million and achieving financial freedom. Today, I will provide a practical operation plan for friends who have just entered the market.
Why choose the cryptocurrency market?
Opportunities are the greatest attraction: 24-hour uninterrupted trading, free from commuting constraints; seizing a bull market can equate to ten years' salary, like the Trump concept coin soaring 15,000% in a single day in 2025. Such opportunities are unimaginable in traditional industries.
You can quickly enhance your skills here: Keeping an eye on the market daily can develop a keen market sense. After mastering technical analysis and on-chain data, you can also transition to being an analyst or self-media, providing an additional development path.
The temptation of getting rich does exist: Those who hoarded Bitcoin early saw prices exceed 80,000 dollars by 2025, with many multiplying their assets by dozens of times. Such cases make people eager to try.
My Practical Cryptocurrency Trading Methods
Many people think trading cryptocurrencies relies on 'insider information' or 'precise predictions,' but ordinary people can profit through simple discipline. My summarized 'Five-Step Incremental Method' is especially suitable for players with limited capital.
Divide funds into five portions; with 3,000, divide into 5 portions of 600, using only one portion each time, leaving the rest untouched to avoid impulsive 'all-in' actions.
Use 600 to test the waters; choose a coin you are optimistic about to buy in cash. Newcomers must avoid leverage; the volatility of cash is enough for small capital to double.
Add to positions after a 10% drop; if you buy and it drops 10%, add another 600. At this point, the cost decreases by 5%, and a 5% rebound can break even, which significantly reduces psychological pressure.
Take profit on half after a 10% rise, regardless of how much it may rise afterward; sell half to lock in profits. For example, if a 600 unit rises to 660, sell 300 units, and even if the remaining 300 units drop back, you still gain 30.
Cyclic operation allows profits to roll; use the profits to find new coins and repeat the previous steps. Using this method with 3,000, it's not difficult to multiply 5-10 times in a year; the key is not to be greedy, satisfying with 10% profit each time.
10 Trading Tips for Stable Profits
Understand one of these, and you can also stand firm in the cryptocurrency market; it's worth pondering repeatedly.
Bidirectional Trading: Applicable in both bull and bear markets; can buy long or short, flexibly responding to market changes.
Coin Hoarding Method: The simplest yet most difficult; buy and hold for at least six months to a year without operating, with returns potentially reaching ten times, but newcomers may struggle to persist and be easily affected by short-term fluctuations.
Bull Market Dip Buying Method: Use no more than one-fifth of spare cash to select coins with a market cap of 20-100, and when they rise over 50%, switch to coins that have plummeted for cyclic operations. The premise is that the coin type is reliable; newcomers should be cautious.
Hourglass Switching Method: In a bull market, funds permeate various coins like an hourglass, first rising leading coins, then mainstream coins, followed by coins that haven't risen and small coins. When Bitcoin rises, select the next level of coins that haven't risen to build positions.
Pyramid Bottom Buying Method: Used when predicting a major crash, buy at 80%, 70%, 60%, 50% of coin prices in a ratio of 1:2:3:4.
Moving Average Method: Understanding some basic K-line knowledge is enough. Set MA5, MA10, MA20, MA30, MA60 daily indicators. If the current price is above MA5 and MA10, hold; if MA5 drops below MA10, sell; if it rises above, buy.
Violent Coin Hoarding Method: Choose familiar high-quality long-term coins; if the current price is 8 dollars, place a buy order at 7 dollars. After buying, place a sell order at 8.8 dollars. Use profits to hoard coins, keeping liquid funds for the next opportunity. The buying price is 90% of the current price, and the selling price is 110% of the current price.
Aisuo's Violent Compound Interest Method: Continuously participate in ICOs, take out the principal when new coins rise 3-5 times, keep the profits circulating, with astonishing compound interest effects.
Cyclic Wave Method: Find coins similar to ETC, add positions when they drop, and sell when profitable, continuously cycling.
Small Coin Violent Strategy: Divide 10,000 into 10 portions to buy 10 different small coins under 3, and do not sell until they rise 3-5 times. If trapped, hold for the long term; when a coin triples, invest the principal into the next one, yielding exaggerated compound returns.
Essence of Trading Systems
The core of trading is: cut losses when wrong, hold when right, small losses for big gains, aiming for large profit-loss ratios. Specifically for each link:
Go with the trend: Use moving averages to simply differentiate between long and short; only go long above, only short below.
Test Positioning: Go with the trend, align with the major trend while countering the minor trend; consider the large profit-loss ratio when entering. Cut losses if wrong, and gain significantly if right. Preferably choose trend bottoms or early stages.
Test Position Stop Loss: Must stop loss if key points are breached; if the price returns, you can re-enter, so do not hope to hold on to a losing trade or average down.
Add to Trend Positions: Adding to profitable positions is key to making big money; when prices rise as expected, add to positions at support levels or before breaking previous highs.
Set Stop Loss for Trend Positions: Move the stop loss of newly added positions to new key points. Once the base position is secure, only bear the stop-loss risk of the added position. If it fails, stop-loss the added position for the next opportunity. If it continues to rise, maintain the position, add to it, and move the stop loss until stopped out or a head signal appears to take profit.
Take Profit: Do not easily take profits; exiting can be in batches or all at once. It is best to wait for the highest probability head signals. Right-side trading requires accepting floating wins and drawdowns; do not aim to sell at the highest point.
As long as you master and follow these principles, maintain discipline and consistency, making money will come naturally.
Following trades must be done for each transaction; otherwise, you won't make big money. Small capital wanting to grow must avoid misconceptions, such as thinking short-term trading can roll over large funds, which is wrong. Small capital should focus on medium to long-term, relying on compounded interest growth. Just like folding a piece of paper 27 times makes it 13 kilometers thick, and folding it 37 times exceeds the Earth's thickness. If a 30,000 capital triples, then triples again, it can quickly reach four to five hundred thousand. Don't think about making 10% or 20% daily; that will eventually ruin you. The smaller the capital, the more long-term it should be, relying on compound interest to grow, and avoid chasing small short-term profits.
Guaranteed Strategy to Quickly Make Millions with Small Capital: RSI Technical Indicator
Learning this high-win-rate indicator will benefit you for life. It is suitable for everyone, especially technical traders, as it can identify trends and breakthroughs in advance.
RSI Calculation Formula
RSI = 100 - [100 / (1 + RS)], where RS is the average of closing prices on up days divided by the average on down days, with a common period of 14 days, adjustable according to trading style.
RSI Levels
0-30: Extremely oversold, downward trends may turn upward, but strong declines may keep the indicator here for a long time; do not blindly buy.
30-50: Slightly oversold to neutral.
50-70: Neutral to slightly overbought.
70-100: Extremely overbought; upward trends may turn downward. Strong price rises may also keep the indicator here for a long time; do not automatically close positions or short.
These ranges are only for guidance; other elements are needed to confirm overbought and oversold conditions; otherwise, erroneous signals may be numerous.
Set Options
Parameter selection is determined by strategy and time frame, with a default of 14 periods, upper limit 80, lower limit 30. Swing traders sometimes use 20 periods, and can also set upper limit 80, lower limit 20; fewer signals but more reliable.
Overbought and Oversold Levels
Horizontal axis for time, vertical axis from 0 to 100; above 50 indicates a positive technical trend, below 50 indicates a negative trend, measuring the speed and direction of price changes.
Values above 70 indicate overbought, short-term price surge, increasing the possibility of a decline; below 30 indicates oversold, significant price drop, increasing the possibility of a rebound.
Usage methods in different market stages
Horizontal Price Channel: Classic buy (<30) and sell (>70) signals are quite reliable.
In an Upward Trend: Classic methods perform poorly, ignoring sell signals; buying when RSI drops below 50 yields better results.
In a downward trend: Use RSI to short when prices temporarily rebound; if the trend indicator is declining and the price rebounds above 50, it signals a sell.
In strong trends, the boundaries of 30 and 70 are quite extreme; the 50 level is more suitable for identifying overbought and oversold conditions.
The Power of Divergence
Divergence is the difference between price and indicator trends, indicating that a long-term trend may end, with bullish and bearish divergences.
Bullish Divergence: New lows in price, opposing RSI trends, weakening downward momentum, potential for a rebound.
Bearish Divergence: Indicator peaks lower while prices rise, momentum weakens, suggesting a potential mid-term decline.
Hidden Divergence
Occurs in clear trends, appearing when prices temporarily drop in an upward trend or rebound temporarily in a downward trend.
In an upward trend, new higher lows in price indicate lower lows in RSI, showing bullish hidden divergence.
In a downward trend, prices are lower than high points, with the indicator higher than low points, indicating a hidden bearish divergence.
Steps to Use RSI in Swing Trading
Choose Time Frame: Swing trading lasts from a few days to a few weeks; default daily line for 14 periods, short periods have many signals but larger errors, while long periods may miss fluctuations.
Determine the current trend: Trade in the direction of the major trend, using the 200-day moving average or upward trend line for judgment.
Identify and Optimize RSI Signals: 70 and 30 identify overbought and oversold, but must be combined with trend momentum; in strong trends, an RSI rebound from 50 may trigger effective signals.
Do not rely on a single indicator: Combine long-term trends, price behavior, chart patterns, etc.; the quality of signals is more important than quantity.
Pay attention to RSI Divergence: Find entry points in strong trends; hidden divergence is crucial.
Determine Entry and Stop Loss Points: Create a plan, set in advance, and use trailing stop losses to protect profits.
Position size and risk management: Manage losing positions to keep losses small; five consecutive 1% losses are not disastrous, while a single loss of tens of percentage points can be fatal.
9 Survival Rules for Short-Term Operations in the Cryptocurrency Market
Learn to wait; contracts are like a game of passing the flower, adjustments come after emotional highs, and reversals follow panic. Earning 80% from 20% of the opportunities is a market principle.
Never go heavy; heavy positions can lead to emotional decisions, causing a vicious cycle with frequent losses. The key is attitude and finding new opportunities, ensuring to protect your capital before making profits.
Be cautious when buying; do not act impulsively due to a straight rise; there are many opportunities in big markets, so consider comprehensive indices and emotional judgments.
Cut losses decisively; if it doesn't meet expectations, make quick decisions, do not waste time on losses, and seek new opportunities.
Withdraw profits after large gains; significant profits indicate market frenzy, an adjustment is imminent, and timely withdrawals add color to life.
Respect the market; do not judge subjectively. Do not cling to directions not chosen by capital; immerse yourself in the direction recognized by the market.
Do not chase after peaks; when the market peaks, the game of passing the flower will end, and it will be hard to find buyers the next day.
Try not to trade in the afternoon; in the morning, the short-term situation is clear, and by the time action is needed, it has already been taken. Simplify trading and avoid unnecessary entanglement.
Persist in reflection and summarizing; failure is not scary, but lack of harvest is. Let each failure become the foundation of success, allowing you to go further.
Welcome to learn and exchange together!
