An 88-year-old cryptocurrency trader: Turning 500,000 into 60 million in 5 years, relying on this method!

I am 37 years old this year, from Jiangxi, now settled in Guangzhou. I have two houses, one for my family and one for myself. Plus, I have two cars, one Maserati and one GLS.

Turning 500,000 into 60 million in 5 years without any insider information and without relying on luck, purely relying on a method that is incredibly simple — today I’m sharing the experience gained over these 2482 days for free with my brothers.

What is the most heart-wrenching phrase in this market? 'You will never earn money beyond your knowledge.'

I have been grinding in the secondary market for 9 years, interacting with over 10,000 investors! But do you know? Only less than 10 people have truly achieved financial freedom! The success rate is less than 1%. Where does the reason lie?

It's simple: it's not because of poor skills or insufficient funds, but because the cognition does not match the desire, and the execution does not match the plan.

I myself have come up from being a 'small retail investor': transitioning from the stock market to the cryptocurrency field, experiencing liquidation, being cut, emotional breakdowns, and even thinking about quitting at one point, but in the end, I persevered!

The psychological process of retail investors basically goes through these stages:

1. When the market rises sharply, I feel regret for not having enough positions, saying I will wait for a drop to go all in.

2. When the market has just experienced a major drop, still full of confidence, chatting lightly, thinking the drop is too small, waiting for an opportunity to add positions.

3. As the market entered a downward trend, complaints began to arise, emotions were low, and people hoped for a rebound but saw none.

4. As the market continues to fluctuate, people start to remain silent, and no one makes any comments anymore.

5. No one talks about buying the dip anymore; people always feel that the market will continue to decline, and no one mentions the blockchain revolution.

6. Occasionally, someone expresses their views to warn others, but everyone seems to be still immersed in the current situation, without much reaction.

7. When the market begins to reverse, still waiting for a correction, mistakenly believing it’s a temporary rebound, and continue to watch.

8. When the market shows clear abnormalities, chasing the price up only to find it was a temporary peak.

9. The same operation is repeated again and again, ultimately leading to elimination by the bear market. In a bull market, buying at the bottom leads to being trapped, and after losses, you retreat from the circle and end your investment.

1. The market is always right.

I spent three months reviewing all my failed trades and found that 90% of losses stemmed from trading against the trend. Since then, I only do trend trading, waiting for clear signals to enter. This simple change increased my win rate by 300%.

2. Original 'three-layer filtering' rule

Fundamentals: Only choose projects with real applications; Technical analysis: Wait for weekly breakthroughs; Emotional aspect: Avoid market frenzy periods. This set of rules has helped me avoid countless 'shitcoins' traps.

3. Capital management determines life and death

I set up strict rules:

Invest no more than 10% of your position; if you lose 5%, stop-loss immediately; only consider increasing your position after a 10% profit. Strict capital management allows my account to steadily grow even in a bear market.

4. Discover the password of the main funds.

By studying on-chain data, I discovered three key signals:

When large amounts of stablecoins flow into exchanges, net withdrawals increase, and giant wallets become unusually active, these three signals often indicate a major market trend.

5. Establish an 'anti-fragile' system

Never go all in; keep 30% cash not in contracts, only play spot trading, and set automatic take profit and stop-loss. This system kept me unscathed during the LUNA crash in 2022.

6. Daily mandatory exercises

Morning 30 minutes browsing industry dynamics, midday analysis of position data, evening review of daily trades. This habit keeps me sensitive to the market.

Now, I only spend 2 hours a day managing investments, and the rest of the time enjoying life.

This experience taught me: the biggest risk in investing is not market volatility, but ignorance and greed.

When you truly understand the laws of the market, financial freedom is just a matter of time.

In your 20s or 30s, you can also make a comeback in the cryptocurrency world and earn millions!

I know that many people panic when they see the market decline, as if the apocalypse is coming. Most people are accustomed to chasing prices when the market rises and panic selling when the market falls. But is this approach really wise?

Investment is not a game, but a decision that requires professional knowledge and experience. So I suggest you read through my core ideas carefully, as they will help you go further and more steadily in the cryptocurrency world. Of course, my views only represent personal opinions, and you can refer to your own situation.

However, I find that many people do not truly understand how to invest in the cryptocurrency world.

First of all, the circle is actually a kind of financial investment, and our goal should be to achieve sustained profits and double our assets within a certain timeframe. If you always expect to get rich from a single contract and focus only on daily price fluctuations, it might be better for you to buy a lottery ticket.

Besides waiting for opportunities, we also need the ability to recognize the size of opportunities. We cannot always hold small positions, nor can we always hold large positions. Usually, we can play with small positions, but when a big opportunity arises...

We must unhesitatingly bring out our 'Italian cannons' and go all out.

Taking rolling positions as an example, this operation is only suitable when big opportunities come. We cannot frequently try rolling positions; even if we miss out, it’s okay. Because as long as you can successfully roll positions three or four times in your life, it’s enough to elevate you from zero assets to the millionaire or even billionaire ranks; such accomplishments can elevate an ordinary person into the wealthy class.

1. Rolling positions

First, let’s carefully dissect the rolling position strategy. Many people have doubts about it, thinking it is highly risky. But I want to tell you, in fact, the risks of rolling positions are far less than you imagine, and even much lower than the risks when you open a position. This is how to start.

First of all, this 50K must be your profit. If you are still in a loss position, imagine you have 50K in funds, you might need to adjust your strategy first. If you decide to open a position when Bitcoin is at 10K, set a leverage of 10 times, but choose a position mode and only open 10% of your position. This means you only use 5K as margin, which is actually equivalent to 1x leverage, setting a 2% stop-loss.

If you hit the stop-loss, you will only lose 2%, which is 1,000 bucks. Those legendary liquidations, how did they reach that point? Even if you really get liquidated, the loss is only 5K; how can you lose everything?

When you make the right judgment and Bitcoin rises to 11K, you can continue to increase your position with 10% of your total capital, also setting a 2% stop-loss. If it hits the stop-loss, you still make 8%.

Look, is the risk really that big? If Bitcoin soars to 15K, and you successfully add positions, then in this 50% market, you could easily earn around 200K.

Just seize two such market opportunities, and your assets can reach around 1 million.

This actually does not involve the concept of compound interest. True profits are accumulated through 2 times 10x, 3 times 5x, 4 times 3x, and so on, rather than relying on daily or monthly gains of 10%, 20%. Such statements are not practical. The concept of rolling positions itself is not scary; it can even be said to be one of the most correct ideas in futures trading.

The real risk lies in the use of leverage. As long as you master the core skills of position management, you should not be able to lose all your funds. So, rolling positions are not scary; it requires wisdom, patience, and courage.

When you really understand it, you'll find that it is actually a powerful tool on your path to financial freedom.

2. Leverage

A leverage of 1x is relatively stable. Personally, I prefer to use two to three times leverage because as long as we can seize two opportunities, dozens of times returns are not far off, right? Even if you choose a leverage of less than one, that's just your personal choice and has no direct connection with the position strategy. I'm not suggesting you use high leverage to take risks.

I have always emphasized that when investing in the circle, only invest one-fifth of your total assets, and from that one-fifth, only take one-tenth to play. This way, your funds only account for 2% of your total funds, and the risk is greatly reduced.

Moreover, when you operate in the futures market, use two to three times leverage and focus on Bitcoin, thus controlling the risk to the extreme. Imagine having 10K in funds; even if you lose 200, would you feel heartbroken?

In general, you must endure loneliness and wait for opportunities to arise. At the same time, learning how to manage positions is very important. As long as you are not exceptionally lucky, opportunities will always favor you. Remember, opportunities are always given to those willing to think. If you rely purely on luck, then no matter how much you earn, you might eventually give it all back and return to square one.

Many people have many misconceptions about trading. For example, they believe that small funds should engage in short-term trading to quickly grow larger. This is actually a major misconception. This way of thinking is actually trying to exchange time for space, hoping to get rich overnight. But in reality, small funds should focus on medium to long-term investments, gradually accumulating through compound returns.

Don’t just focus on short-term small profits, as that will only exhaust you. Instead, we should earnestly accumulate coins, firmly hold our spots, and wait for the rewards of time.

As long as you choose the right targets and hold them long-term, a prosperous life awaits us ahead. And in the cryptocurrency world, the best targets are actually well-known, requiring no excessive choices.

When you have a certain amount of capital, I advise you to avoid contracts, as I fear you might be tempted to turn one million into one billion. The idea is great, but very dangerous. Remember, we only use the money we earn to make money, and pursue stability. Stability is not an absolute 100%, but relative to our overall profitability over a period of time; this is where the charm of spot trading shows.

3. Capital management

Trading seems full of risks, but risks can be mitigated through capital management. Just like me, my account has grown from 300,000 to over 1 million in spot trading.

When I encounter great opportunities, I invest a bit more. If the opportunity seems small, I invest a bit less. This way, I won't miss out on big profits, nor will I suffer heavy losses in high-risk situations.

When luck is good, I can earn over ten million RMB in a year. But even if luck is bad and my futures account is liquidated, I won’t care too much because the returns from spot trading are enough to cover the losses. After compensating, I can reinvest. After all, how could spot trading not make money in a year? At my level of capital, it's impossible not to make even this little profit, right? My principle is: you can not make money, but you must never lose money.

So I haven't been liquidated for a long time.

Moreover, every time I make a profit, I will withdraw one-fourth or one-fifth and save it separately.

Even if I really get liquidated, I still have profits saved as a guarantee. As a regular person, I suggest you use one-tenth of your spot position to play futures. For example, if you have 300,000 in spot, then use 30,000 to play futures. If you get liquidated, use the profits from your spot to make up for it.

After you have experienced liquidation ten times or eight times, you will eventually grasp some insights. If you haven’t figured it out yet, perhaps this field really isn’t suitable for you, so it’s better to stop early.

4. Core thinking for newcomers to the cryptocurrency world.

Perhaps I was once attracted by the K-line analysis of those big influencers, who elaborated on various technical patterns like engulfing and morning star during live broadcasts.

But I want to tell you that for individual investors, while technical analysis is worth learning, it is not the key to determining price movements.

After all, no matter how good your skills are, can they surpass those financial talents hired by dog farms with monthly salaries of over 10,000? True skills lie in position management, market information, and market sentiment. When we capture good news from the media, we conduct a comprehensive analysis to determine whether the news is actionable.

For example, we recently selected a potential coin in a hot sector, preparing to lay low, expecting that during the Bitcoin halving, a tenfold increase is very likely. However, this indeed requires time and experience accumulation, which is difficult for beginners.

But when you decide to invest in a certain coin, how do you determine the entry point and manage your position?

The answer is actually very simple: when a certain piece of news spreads, if a large number of people start asking whether BTC can be bought, that’s a signal. When these people start asking whether to sell while another group is asking whether to buy, the emotions of fear and greed have already spread in the market.

This is the signal of market sentiment, which cannot be understood merely through looking at charts or news.

When you realize this, you often miss the opportunity.

"How to reduce losses in the cryptocurrency world? A veteran's practical experience revealed!"

How do I reduce losses in the cryptocurrency world?

I have been in the cryptocurrency world for many years, considered an old retail investor, experienced various major events like 312, 519, and black swan events, and have stepped into many pits, been liquidated countless times, but now I have made a full comeback!

Most fans in the cryptocurrency world are in a state of loss; actually, in the cryptocurrency world, losses and gains are very normal, the key is to adjust your mindset. This market is most abundant in opportunities to make money.

To make money in the cryptocurrency world, just remember two things:

First trick: Look at the growth space of valuable coins.

How to determine if a token is a valuable coin? It must be viewed from multiple dimensions:

Look at the sector: Is it a hot track?

Look at the timing of the coin: Is it a new coin or an old coin?

Look at the market capitalization: It shouldn't be too large, preferably below 1 billion, as there are more opportunities for doubling.

Look for benchmarks: Are there popular projects to compare? Look for market movements: Is there capital pushing from behind?

Look at the story: Can the project team convince retail investors? For example, is it solving industry pain points?

Look at the exchange: Projects that have been vetted by large platforms have effectively screened out many risks.

Look at the plan: Is there a clear roadmap?

Look at the practical application capability: Just painting a beautiful picture is not enough; we need to see if there are real application scenarios.

Look at the team background: Check if the founders are seasoned veterans in the industry, not just recent graduates.

Second trick: Follow the right people

In the cryptocurrency world, information is money. Remember three sentences:

It's better to follow the wrong big shot than to blindly think for yourself: the experience and information of big shots are far greater than yours.

Insider information can sometimes be more accurate than white papers: Many insider messages are more valuable than official documents.

Add a few reliable teams; they can save your life at critical moments: many hands make light work, and information sharing is very important.

Key reminder:

A key reminder: Don't be greedy, take the profit: No matter how good the project is, when it has increased 10 times, you should consider withdrawing.

Beginners should avoid contracts: Honestly buy spot, at least you won't lose everything overnight.

Only what you have earned is real money: The numbers on the account are just numbers; don't take them too seriously.

Summary

In the cryptocurrency world, the key to reducing losses is to find valuable coins and follow the right people.

When accumulating value coins, you should look at market capitalization, the story, exchange endorsement, practical application capability, and team background;

When following the right people, you should trust the experience and information of the big shots and not mess around on your own.

Most importantly, don’t be greedy, take the profit, and beginners should avoid contracts.

Remember, only what you have earned is real money; the numbers on the account are just illusions!