I’m an ordinary person born in the '80s, with no background or resources. Ten years ago, I plunged into the cryptocurrency market with 68,000 I saved from working. No one could have imagined that this former 'gambler' who dared to quit a stable job and make a living by trading cryptocurrencies now has account numbers exceeding 70 million.
Some say the cryptocurrency market is a factory for wealth creation, while others say it’s a black hole that devours capital. I’ve seen the 'chosen one' turn a 10,000 investment into 200 million, and I’ve seen a gambler go all-in and end up broke, unable to pay rent overnight. For me, I haven’t relied on luck for quick profits, nor have I fallen into major pitfalls because of greed. I only trade spot and occasionally dabble in contracts, gradually growing a small capital into a 'safety net' that can support my entire family. By the end of this year, I am just one step away from a 'small target' account peak; next year, I want to move more steadily in this market with more capital—if you also want to treat cryptocurrency trading as your primary career, then the pitfalls I've encountered and the experiences I've summarized over the past decade might help you avoid detours.
The core of surviving in the cryptocurrency market for 10 years and achieving stable compounding: first adhere to the 'iron rules,' then discuss 'technology.'
Many people just entering the cryptocurrency market always think of learning 'one trick' for quick profits, but forget the most basic principle: trading should prioritize survival, then profits. The cryptocurrency market showcases 'buy high, sell low' scenarios every day; some earn 3 points and rush to take profits, only to watch prices skyrocket afterwards; others hold onto their losses, thinking 'I’ll lower my average cost,' only to end up deeper in trouble until they have to cut their losses. I survive not because I am smarter than others, but because I adhere to the rules more strictly—these 24 iron rules, I've remembered for ten years and executed for ten years; each one is a lesson learned with real money.
Split your capital into 10 parts, with a single trade not exceeding 1 part: don’t put all your eggs in one basket, and definitely don’t bet your whole fortune. When I first entered the market, I split my 68,000 into 10 parts, trading only 6,800 at a time. Even if I lost, it wouldn’t affect my overall capital, leaving room for recovery.
Always set stop-loss when opening a position, locking in risk at 3-5 points: a stop-loss isn’t 'admitting defeat,' it’s 'saving your life.' I’ve seen too many people forget to set a stop-loss, losing half their account on a sudden drop, while a 3-5 point stop-loss can filter out small fluctuations and protect against 'catastrophic risk.'
Don't trade frequently; the more you trade, the more chaotic it gets: the cryptocurrency market operates 24 hours a day, and some people stare at the K-line from morning until night, making dozens of trades a day, ultimately paying a hefty amount in fees while their capital shrinks. I make at most 2 trades a day, mostly waiting for 'key signals,' preferring to miss out than to act recklessly.
When you earn 3 points, adjust your stop-loss; don’t let profits slip away: unrealized profits aren’t true earnings. Adjusting the stop-loss upwards is like 'locking in profits.' For example, if you bought a coin for $100 and it rises to $103, set the stop-loss at $101, so even if the market pulls back, you can at least earn 1 point when you exit.
When the trend is unclear, do not reach out for it: when the market feels like 'looking through flowers in the fog,' don’t force a trade. I once watched the K-line for three days without opening a position during the 2021 bull-bear transition, and when the market plummeted, many were trapped while I preserved my previous profits.
Don’t make trades in a daze; wait for signals to confirm before acting: in a market you don’t understand, no matter how tempting, don’t touch it. For example, if the MACD signal is unclear and the support level is not stable, I’d rather wait than enter with a 'gamble' mindset.
Only buy mainstream popular coins; don’t even touch obscure ones: mainstream coins like Bitcoin and Ethereum have strong liquidity and good resistance to drops, even if they fall, there’s a chance for rebounds; those 'storytelling' new coins or obscure coins may rise tenfold today only to drop to zero tomorrow.
Distribute large funds across 2-3 coins, while small funds focus on 1 coin: after having over a million, I would distribute the money among Bitcoin, Ethereum, and BNB to diversify risk; when small funds are involved, focusing on one coin makes it easier to control the pace and avoid missing opportunities.
Use market prices for trading; don’t wait for a 'fixed price': some people always think 'I’ll buy Bitcoin at $100,' waiting for the target price, only to see the market rise and miss the opportunity. While market prices may cost a few cents more, they allow you to keep up with the trend, which is much better than 'missing out.'
Let profits fly; don’t close positions early: the urge to run away after making a profit is a human weakness, but when the trend hasn’t broken, you need to learn to 'hold on.' I use 'trailing stop-loss' to follow the market; for example, if the price rises by 10%, I adjust my stop-loss to above the cost price, so even if it pulls back, I can still leave with a profit.
Convert profits into cash and save some: every time I make a profit, I convert 50% into fiat currency, either saving it in the bank or investing in wealth management. The cryptocurrency market is unpredictable; cashing out is the real 'profit,' and it can serve as capital when needed.
Don’t trade recklessly for staking rewards: many coins offer 'staking rewards' that seem lucrative, but could actually be a 'trap'—buying coins for rewards could lead to a price drop, where the rewards don’t even cover the losses, leading to a net loss.
Don’t lower your average cost when you lose; this is a big taboo: if a coin bought for $100 drops to $90, don’t think 'I’ll buy another 100 to average down to $95'; if it drops to $80, you’ll only lose more. I admit my losses and exit at the stop-loss price, never betting against the market.
Only trade at key positions; don’t rush to buy out of impatience: for example, when the price hits previous support levels or when the MACD shows a golden cross, act only when these 'key signals' appear, which has a 10 times higher success rate than 'buying casually.'
Don’t chase small profits at the expense of large losses: some people take the risk of entering the market to earn a small profit of 1 point, only to see a 5-point drop, resulting in neither profit nor loss of capital. Small profits are not worth the gamble; the big trend is what’s worth waiting for.
Once the stop-loss is set, don’t change it; maintaining discipline is more important than anything: many people lose money and think 'I’ll wait a bit longer; maybe it will rebound,' secretly canceling their stop-loss, only to end up losing even more. After I set a stop-loss, no matter how much the market fluctuates, I will never manually change it.
Don’t trade all day; leave time for review: I only watch the market for 4 hours a day and spend the rest on review—seeing where my trades went wrong, whether the MACD signals were accurate, and whether the trend changed. The more I review, the better my judgment becomes.
You can profit from both rises and falls; just operate in line with the trend: go long when prices rise and short when they fall (only occasionally using contracts); don’t go against the trend. For instance, during the bear market in 2022, I also made quite a bit by shorting mainstream coins.
Don't be fooled by 'high or low prices': When Bitcoin was at $100,000, some thought it was 'too expensive' and hesitated to buy. When it dropped to $20,000, they thought 'it will fall further,' only to see it rise back to $60,000, regretting their decision. Price levels are not important; trends are what matter.
Add positions when facing resistance, clear positions when facing support: when the price breaks through a resistance level, it indicates that the trend is still strong, making it safe to add positions; when it breaks below a support level, it indicates a trend reversal, so clear your positions quickly without hesitation.
Small-cap coins are suitable for shorting, while large-cap coins are suitable for going long: small-cap coins have high volatility and can be easily manipulated, falling faster than they rise; large-cap coins are stable and tend to rise more persistently. The strategies for the two are different; don’t mix them up.
Don’t hedge losses; admit losses directly: if a coin you bought drops, don’t think 'I’ll sell another coin to average down,' because you’ll lose on both coins. I take my losses and exit at the stop-loss price, saving my capital for the next opportunity.
Switching between bullish and bearish trends must be based on evidence; do not switch directions randomly: going long today and shorting tomorrow without supporting signals will only lead to slapping your own face. I only switch directions when the MACD shows a death cross/golden cross or when the trend has clearly changed.
Don’t get overconfident after consecutive wins; treat each trade with equal importance: some people feel 'invincible' after winning several trades and start increasing their positions, only to lose everything in one mistake. Regardless of how many consecutive wins I have, I always follow the '10 parts of capital' rule for every trade, remaining neither greedy nor careless.
These 24 iron rules may seem like 'platitudes,' but less than 10% of people in the cryptocurrency market can fully adhere to them. Trading is an anti-human nature exercise; if you can control your hands and maintain your discipline, you have already outperformed most people.
Mastering a MACD is enough to thrive in the cryptocurrency world.
After adhering to the iron rules, discuss technology—many people think complex technical indicators are better; in fact, it’s unnecessary. I’ve only used one MACD for ten years, going from not understanding it at all to being able to tell at a glance whether to buy or not. Today I will break down the most practical MACD strategies for you; each one can be directly applied in practice. I suggest saving them for repeated comparison with K-lines.
First, understand the 'underlying logic' of the MACD: it consists of the fast line DIF, slow line DEA, and MACD bars, with the core focusing on 'the cross of the two lines' and 'divergence with the K-line' to help you judge whether the market is 'bullish' or 'bearish.' In simple terms: when DIF crosses above DEA, it’s a 'golden cross' (bullish); when DIF crosses below DEA, it’s a 'death cross' (bearish); above the zero axis is a bullish market, while below the zero axis is a bearish market—remember these fundamentals, and learning strategies will become simple.
Seven practical MACD techniques: core signals for buying at lows and selling at highs.
1. Top divergence exit: sell on the third divergence to avoid a crash.
When the price keeps rising, even setting new highs, but the MACD's DIF line is moving down (not making a new high), this is called 'top divergence'—indicating that the market 'can’t rise anymore,' and the bullish power is weakening. Every time I encounter a top divergence, I pay attention to the count: the first divergence might be a small pullback, the second divergence needs caution, and the third divergence must be sold, regardless of whether there is still room for future increases; securing profits comes first.
For example, when Bitcoin rose to $69,000 in November 2021, the price reached a new high, but the MACD's DIF line was lower than the previous peak, indicating a third top divergence. I decisively reduced my position by 80%, and when Bitcoin dropped to $29,000, I was not affected at all.
2. Bottom divergence for bottom-picking: act only after two divergences, avoiding 'false signals.'
The price has been falling for a long time, even setting new lows, but the MACD's DIF line is moving up (not making new lows)—this is called 'bottom divergence'—indicating the market has 'fallen deeply,' and the short selling power is nearly exhausted. But don’t rush to buy at the first divergence; often, after the first divergence, there will still be 'downward movement,' falling even harder without a new low in the MACD. The second divergence is the true bottom; you can enter with a small position and add more once stability is achieved.
In June 2022, when Bitcoin dropped to $17,000, after the first bottom divergence, it fell another $1,000, but the MACD did not make a new low. When the second bottom divergence appeared, I entered the market with 10% of my capital, and later, Bitcoin rose to $48,000, netting me over twice my investment in this wave.
3. Zero-axis buying method: golden crosses near the zero axis have the highest win rates.
The zero axis of the MACD is the 'bull-bear dividing line.' If the DIF and DEA form a golden cross above the zero axis (close to the zero axis), it indicates that the bullish trend has just begun, and the market is likely to strengthen. If a golden cross forms below the zero axis (close to the zero axis), it indicates that the bearish strength is weakening, and the probability of a rebound is high. I love trading these two types of golden crosses, with a win rate of over 70%, while golden crosses far from the zero axis (for instance, very high above the zero axis) are prone to pullbacks, which I generally avoid.
4. 'Golden cross - death cross - golden cross' below the zero axis: bottom signal, safe area for bottom-picking.
When the DIF crosses above the DEA below the zero axis and pulls back before reaching the zero axis, followed by a death cross with the DEA, then a few days later it crosses above the DEA again—this pattern is called a 'second golden cross' and is a typical 'bottom signal.' It indicates that the price has fallen deeply, the selling pressure has been exhausted, and the main players are secretly accumulating. Entering the market at this time means lower cost, reduced risk, and greater rebound potential.
In January 2023, when Ethereum dropped to $1200, this pattern appeared: after the first golden cross without reaching the zero axis, it pulled back and then golden crossed again. After entering the market, Ethereum rose to $2100, earning 75%.
5. Golden cross below the zero axis without death cross: the main player’s accumulation area; enter decisively.
After the DIF crosses above the DEA below the zero axis and pulls back without reaching the zero axis, approaching the DEA, while the MACD red bars shorten but do not form a death cross and then rise again, lengthening the red bars—this pattern indicates the main players are 'washing the market,' driving out indecisive retail investors while secretly accumulating. When I encounter this situation, I will enter the market when the red bars lengthen again, which means 'building positions alongside the main players,' and the probability of subsequent price increases is high.
6. Divergence selling: the white line is far from the yellow line, time to run.
When the market surges, and the DIF (white line) is far from the DEA (yellow line), while both lines are at high positions above the zero axis, it indicates that 'the rise is too rapid,' and the divergence is too large, prompting a potential pullback at any moment. At this point, once I see the DIF line starting to turn down, regardless of whether there is a death cross, I must 'get out quickly' and sell; don’t wait for the pullback and then regret it.
7. Double death cross selling: the 'three absolutes' principle, clear positions without hesitation.
If the cryptocurrency you hold is in a loss position, you should decisively clear your position when encountering two types of death crosses: one is when the MACD crosses below the zero axis, and then drops below zero again (double death cross); the other is when the DIF and DEA remain below the zero axis without a golden cross and continue to move down. These two situations indicate that the price is in a weak position and will likely drop significantly. You must adhere to the 'three absolutes': absolutely do not cling to your position, absolutely do not fantasize about a rebound, and absolutely do not be pained by losses. Clear your position and wait for a signal to re-enter; this is ten times better than stubbornly holding on.
A rare but highly profitable pattern: aerial cable, which causes a surge once it appears.
There’s also a rare yet practical pattern—the 'aerial cable.' Once it appears, the price often skyrockets, even soaring continuously.
When the DIF crosses above the DEA below the zero axis, both breaking above the zero axis, and then as the price pulls back, the DIF also retraces near the DEA, with both lines sticking together and then separating again, with the DIF moving up—this is the 'aerial cable.' When they stick together, it’s 'building momentum'; when they separate upwards, it’s 'the rise begins.' Entering the market at this time can capture a major trend.
For example, when BNB rose from $280 to $350 in April 2023, the aerial cable appeared: the DIF and DEA combined at the zero axis and then separated. After I entered the market, BNB quickly rose to $430, earning 23% in just 10 days. However, it's important to note that this pattern is rare, and it’s best to judge it in conjunction with the K-line's 'bullish engulfing' pattern. For instance, if a bullish engulfing pattern appears above the 60-day moving average along with an aerial cable, the success rate will be even higher.
The final sincere statement: The money made in the cryptocurrency market isn’t 'technical money,' it’s 'cognitive money.'
Many people, after learning the technology, always think of 'carving the boat to seek the sword'—trying to apply historical K-line patterns to current market conditions, only to stumble repeatedly. The most core aspect of the cryptocurrency market is not 'predicting the market,' but 'understanding human nature.'
In this market, 80% of people are 'driven by emotions': they chase prices when they rise, believing 'it will keep rising,' and panic sell when they fall, thinking 'it will keep falling.' The ones who really make money are those who 'go against the emotions'—I’m fearful when others are greedy, and greedy when others are fearful. For instance, during the crash on March 12, 2020, when Bitcoin fell 50% in one day, the social media was filled with cries of 'cutting losses,' but I entered the market with 20% of my capital, and later when Bitcoin rose to $60,000, this move multiplied my capital tenfold.
Technical indicators are 'tools' to help you judge trends; discipline is the 'bottom line' to help you control risks; but understanding human nature is the 'core'—knowing when to wait, when to act, when to be greedy, and when to retreat.
I have been trading cryptocurrencies for 10 years, growing from 38,000 to tens of millions, without relying on luck or clever tricks. I only did three things: stick to discipline, learn the technology, and understand human nature. If you want to treat cryptocurrency trading as a profession, don’t expect to 'get rich overnight.' First, calm down and build a solid foundation, engrave the discipline into your bones. When you can execute trading rules as 'naturally as breathing,' making money will become a matter of course.
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