I am 35 years old this year. I entered the cryptocurrency space in 2019 with a principal of 60,000, and as of last year, my assets have surpassed eight figures. Calculating, I have been in the cryptocurrency space for 10 years, professionally trading for 6 years, experiencing over 3,100 trading days, trying various trading models such as long-term, short-term, ultra-short, and swing trading, and have many personal insights on 'how to survive and profit in the cryptocurrency space'.
It is often said that 'mastering a skill requires the 10,000-hour rule.' For me, 8 hours of review every day, over 200 days of focused study a year, and a full 5 years have laid the foundation for stable profits — this is just the starting point, not the end. The cryptocurrency space is never a guaranteed profit arena, there will surely be major pitfalls in the next 10 years, so I always remind myself: never invest principal into areas beyond your capabilities. I have seen too many people go from tens of thousands to hundreds of millions relying on high-leverage contracts, only to lose everything in a bear market; however, these 'fallen' stories are rarely mentioned. Human nature is too easy to lose control in the face of trends, and once driven by greed or fear, the ability to make correct judgments will be lost.
1. The core of making a profit in the cryptocurrency space: first change yourself, then talk about results.
In trading in the cryptocurrency space, there is a principle I understand more deeply: it's hard to change others, it's also hard to change oneself, but only by changing oneself is there hope for profit.
The financial market never has 'if', it only looks at the final result: if you can't achieve the result, you must have made a mistake at some step; if you can continuously profit, it must be that you made the right key decisions, and that's it. Our way of thinking determines our daily behavior, and our daily actions accumulate into the final result — losing money is not scary, what is scary is avoiding problems after losing money, not seeking the root cause, and allowing mistakes to repeat.
Everything has a cause and effect; today's situation is the accumulation of every past decision. In the adult world, once you make a choice, you must bear the consequences, and even if you are wrong, you must face it calmly; let alone 'pretend to work hard', because results will never act with us. Reflect more and summarize more in daily life: continuously improve good experiences, immediately correct wrong habits, and given time, you can naturally turn losses into profits.
2. The bottom line for a qualified trader: abandon luck, hold onto understanding.
The pitfalls to avoid in cryptocurrency trading are essentially 'pits of human nature': abandon the mentality of luck, don't expect to 'gamble for a comeback'; abandon the desire for quick riches and speculation, don't be blinded by short-term profits; and especially abandon 'trading outside of your understanding', do not touch unfamiliar coins or unsubstantiated market trends.
Before every order I place, I ask myself three questions:
What is the logic behind this trade? Do I really understand it?
Is there solid evidence supporting the decision? Is the strategy and risk control system complete?
If the trade fails, is the loss within my acceptable range?
Think clearly about these three questions to avoid 'trading by feeling'. Clearly positioning your ability boundaries is an essential element of being a qualified investor — do not earn money outside of your understanding, do not take risks beyond your capacity, to walk far in the cryptocurrency space.
3. The essence of trading: cut losses when wrong, hold when right.
Finally, I want to share the core insights I have summarized from my 6 years of professional trading: the essence of trading can actually be summarized in 8 words — cut losses when wrong, hold when right.
Many people lose money either because they don't cut losses when wrong, clinging to the illusion of 'waiting for a rebound' which turns small losses into huge losses; or they can't hold when right, rushing to exit after making a little profit, missing out on the real trend. By adhering to these 8 words, along with a clear understanding of oneself and a respect for risk, one can gradually move from 'losing money' to 'stable profit' amid the fluctuations of the cryptocurrency space.
As long as you want to change, it's never too late to start — the key is to begin now, starting with changing your trading habits and mindset.
