If you want to earn your first bucket of gold in the cryptocurrency market with small funds, remember this: do not blindly follow trends and become cannon fodder; first understand the gameplay, then find the right strategy. The cryptocurrency market has various models like spot and contracts; there is no 'best', only what suits you—starting from 3000 yuan to 1 million, I rely on 6 core strategies + 3 underlying principles, sharing them with you to help you avoid pitfalls.
One, 6 practical strategies: Capture signals, avoid 'ineffective trades'.
1. Buying the dip on a crash: Focus on the '9-day cycle'
If a coin falls for 9 consecutive days, you can decisively buy the dip on the 10th day (provided it is a mainstream coin, not a shitcoin). This is a common extreme cycle I have observed in market manipulation; after falling for 9 days, the probability of a short-term rebound is very high, so avoid blindly entering the market in the days prior to the decline.
2. Taking profit during a surge: Must reduce position after rising for 2 days.
The money in the cryptocurrency market is 'sold out', not 'held out'. As long as a coin rises for 2 days in a row, regardless of whether it can continue to rise after that, first reduce your position by 50% to lock in profits. Many people are greedy and wait for 'one more rise', ultimately losing their profits and getting stuck.
3. Breakout from sideways: Watch for the '6-day volume signal'
If a coin is stagnant for 6 days with no movement, and on the 7th day suddenly surges with volume (the trading volume doubles compared to the previous 6 days), this is a signal that the main force is preparing to initiate action, immediately follow in with a small position. The longer the sideways action lasts, the stronger the upward momentum usually is after the breakout, but be cautious: do not enter the market firmly before the volume increases.
4. Next day stop loss: Cut losses if you haven't earned back the transaction fee.
After buying a coin, if you haven't earned back the transaction fee by the next day's close (for example, if you buy 1000 yuan worth, and the profit isn't enough to cover the 5 yuan fee), cut your losses. Don't think 'it's a small loss, I can hold on'; time cost is the hidden killer—capital being tied up means missing out on more good opportunities.
5. 'Three-Five-Seven Law': Do not chase high prices.
Look at the rising list: a coin ranked third is likely to surge into the top five; a coin ranked fifth often can reach the top seven (limited to short-term market conditions, within 1-3 days). But 90% of people fall for waiting to break even—chasing high prices and getting stuck, unwilling to cut losses, ultimately missing the next signal coin.
6. Quant magic: rising for 4 days, be alert on the fifth day at 3 PM.
Many quant bots have a fixed trading rhythm: after a coin rises for 4 days, it is likely to see a crash around 3 PM on the fifth day. If the coin you are holding fits this pattern, reduce your position in advance to avoid being harvested by quant bots.
Two, 3 underlying principles: 'life-saving lines' more important than strategies.
• Dollar-cost averaging: If you cannot accurately choose the entry point, then use 'regular fixed investment' in mainstream coins (for example, buy 100 yuan of BTC every Monday), buying regardless of rises and falls, over time it can average out costs, which is more stable than 'betting on points'.
• Long-term stability: Choose 1-2 fundamentally sound mainstream coins (like BTC, ETH), do not chase short-term hot spots, do not trade frequently, hold for 1-2 years, often you can benefit from the big trend's profits, which is more worry-free than 'changing coins every day'.
• Risk does not cross borders: only use 'money you can afford to lose' to enter the market, absolutely do not use living expenses, rent, dowries, or other essential funds. The cryptocurrency market is highly volatile; safeguarding your principal gives you the chance to wait for the next profitable cycle.
Final reminder: These strategies are not 'foolproof', but they can help you avoid 80% of the pitfalls. Earning the first bucket of gold in the cryptocurrency market relies not on luck, but on 'understanding signals + controlling your hands'. Starting from 3000 yuan, practice slowly, and you too can find your own rhythm for making money.
A must-read for blockchain beginners: 50 core terms fully explained
When first coming into contact with blockchain, many people's first feeling is 'listening to a cryptic text'. A bunch of incomprehensible English abbreviations and jargon that suddenly goes up makes newcomers confused. In fact, these concepts are not mysterious; they just need someone to help you translate them into plain language.
In this article, I have compiled the 50 most common core terms in the blockchain world, explained in as simple a way as possible to help you quickly build a complete cognitive framework.
One, basic concepts of blockchain.
Blockchain
It is essentially a distributed ledger. All data is recorded in 'blocks' and then connected in chronological order to form a 'chain', which cannot be tampered with.
You can understand it as a 'ledger system maintained by everyone'.
Block
Just like a page of a ledger, it records transaction information, timestamps, and the 'fingerprint' of the previous block.
Hash Value
The unique digital fingerprint of data. For example, if you input an article, the system will output a fixed-length code. Change a single character, and this string of code becomes completely different.
Decentralization
There is no 'single manager'; all participants jointly maintain it. This is completely different from traditional 'centralized' banks.
Two, how blockchain operates.
• Node
Computers participating in the blockchain network. Each node keeps a complete ledger, just like everyone has a copy of the ledger.
• Consensus Mechanism
How everyone reaches an agreement on 'what the ledger really records'.
Common ones include:
• PoW (Proof of Work): Competes based on computing power to see who solves problems faster, typical of Bitcoin.
• PoS (Proof of Stake): Determines accounting rights based on how many coins you hold; a typical example is the mechanism after the Ethereum merge.
• Miner
In PoW mode, nodes contributing computing power are rewarded with Bitcoin.
• Gas Fee
Similar to 'transaction fees'. On Ethereum, every transfer or execution of a smart contract incurs a cost.
Three, cryptocurrencies and wallets
• Public Key
Your blockchain address can be shared publicly; others can transfer money to you through it.
• Private Key
Equivalent to a bank card password + USB security token, absolutely must not be leaked. Whoever holds the private key owns the asset.
• Hot Wallet
Online wallets are convenient to operate but have high security risks.
• Cold Wallet
Offline wallets (such as hardware wallets, paper wallets) provide higher security.
Four, common terms in trading and markets.
• Exchange
Platforms for buying and selling cryptocurrencies, such as Binance and Coinbase. Divided into centralized exchanges (CEX) and decentralized exchanges (DEX).
• Liquidity
Refers to how quickly assets can be converted to cash. High liquidity means you can buy and sell at any time without affecting the price.
• Stablecoin
Cryptocurrencies pegged to fiat currencies like USD, such as USDT, USDC. Their role is to provide hedging and trading stability.
• DeFi (Decentralized Finance)
Blockchain-based financial applications, such as decentralized lending, DEX, and staking.
Five, professional terms investors cannot avoid
• Whitepaper
The project's 'business plan', usually introducing concepts, technology, token distribution, and roadmap.
• FOMO (Fear of Missing Out)
Fear of Missing Out, investors fear missing opportunities and blindly chase high prices.
• Bull Market/Bear Market
A bull market is a generally rising market, while a bear market is a continuously declining market.
• HODL
Derived from the misspelling of 'Hold', meaning to hold for the long term without selling easily.
Six, Web3 and future trends.
• Web3
A new generation of internet concept, where the core is user ownership of data and value sovereignty. Blockchain is its technological foundation.
• NFT (Non-Fungible Token)
Used to represent unique digital assets, such as a painting or a piece of music.
• DAO (Decentralized Autonomous Organization)
An organizational form without traditional bosses, where rules are determined by code and community voting.
• Metaverse
A digital world that merges virtual and reality, where blockchain often serves as the underlying technology for asset rights confirmation and value circulation.
Seven, the underlying logic you must remember
1. The core of blockchain is the trust mechanism. It allows transactions between strangers without intermediaries.
2. The private key is your 'asset ownership'. Protecting your private key is more important than anything else.
3. Investments should look at long-term value, do not blindly follow the trend. The market is highly volatile, and mindset and risk management are more crucial than 'listening to news'.
4. Blockchain is not a 'tool for quick wealth', but a revolution about the future digital order.
In the cryptocurrency market, earning 1 million can be achieved by either relying on a bull market and holding, betting on a skyrocketing coin, or leveraging to bet on the correct direction. But most people lose money, so don't just look at wealth stories, first think clearly about how much risk you can bear.
If you are also a technology enthusiast in the cryptocurrency space, click on the coin's homepage.
Click on my profile to follow me for first-hand information and in-depth analysis!
There is a simplest and most straightforward method and strategy for trading coins (trend candlestick); this is a reliable trading tool with a success rate of up to 99%, and it is something every cryptocurrency trader must master and learn! Without further ado, let's get straight to the point!
Learn a simple tool to help you understand price behavior. Trend candlesticks can help you identify market strength, hesitation, and traps—this is a reliable trading tool.
Understanding price behavior is actually quite simple.
I am not talking about how to trade price behavior, but how to read it. I mean understanding what the market is currently doing.
Price behavior reflects the contest between buyers and sellers and is a trace of the competition between bulls and bears. When you observe a chart, the most important thing is to identify the movements of the bulls and bears.
To do this, you do not need to memorize dozens of candlestick patterns or chart patterns. Let's keep it simple.
The only concept you need to master is trend candlesticks.
What are trend candlesticks?
Trend candlesticks represent the trend within a smaller time frame. Its opening and closing prices are located at both ends of the candlestick.
Although we can subjectively identify trend candlesticks based on market context, I prefer to use objective measurement standards. The body of the trend candlestick (the distance from the opening price to the closing price) must be greater than 50% of the total range of the candlestick.
● Bull Trend Bar: The opening price is close to the lowest point, and the closing price is close to the highest point.
● Bear Trend Bar: The opening price is close to the highest point, and the closing price is close to the lowest point.
Trend candlesticks indicate that traders have clearly chosen a certain direction. Keep in mind that in each candlestick, the amount of buy and sell contracts is equal. If a candlestick ultimately closes high, it indicates that buyers are more aggressive than sellers. Conversely, if a candlestick ultimately closes low, it indicates that sellers are dominant.
Guiding principles for interpreting price behavior using trend candlesticks
● Continuous trend candlesticks (same direction) indicate market strength. Please pay attention to this.
● Trend candlesticks in the opposite direction represent the contest between bulls and bears. Observe which side ultimately prevails.
● Isolated trend candlesticks may be traps. A trap is essentially misleading—Is it really a trap?
Example of price behavior chart
Let's take a look at two detailed examples of this powerful concept in the actual market.
Chart annotation legend.
● Trend candlestick
● Blue circle - Continuous trend candlesticks (same direction).
● Pink dashed circle - Trend candlestick in the opposite direction.
● Green arrow - Appears after an isolated bearish trend candlestick (i.e., the bearish trend candlestick fails).
● Red arrow - Appears after an isolated bullish trend candlestick (i.e., bullish trend candlestick fails).
Example 1: SPY Daily Chart
1. Clear battle zone: Four alternating trend candlesticks.
2. Bulls attempted a counterattack, but the impact was minimal.
3. The bears then came back stronger.
4. These two rounds of contests ultimately ended with the bulls winning, indicating that the bulls may have regained control of the market.
5. As expected, the bulls displayed strength.
6. This contest seems advantageous to the bulls, but we know that the bulls have not clearly won because the final extreme high point was not broken.
7. The subsequent strong decline confirmed that the bears have taken over the market.
You can carefully observe the red and green arrows; in the appropriate market context, they represent effective bearish traps and bullish traps, respectively.
Example 2: ES intraday chart (5 minutes)
1. At the opening of the trading day, bulls dominate.
2. However, the price quickly stagnated as both bulls and bears began to intervene.
3. Although the bears entered the market, they lack sufficient strength in the overall market context.
4. This scene formed an excellent bearish trap (i.e., a buying opportunity).
5. Ultimately, the bulls won this contest, successfully breaking upward.
6. After a fierce contest, the bulls continue to show strength.
7. The market then enters a period of volatility and consolidation, showing two candlesticks of opposite directions, ultimately the bears win.
Open the price chart and start interpreting the market.
This method of reading price behavior is very simple, thus it is suitable for all time periods and all trading varieties. (The above charts are all randomly selected.)
This requires some practice, but anyone can learn. Open a historical candlestick chart, mark trend candlesticks, and practice how to interpret ongoing contests between bulls and bears in the market.
Once familiar with this method, you can apply it to real-time markets.
Please remember, this is not a trading strategy. To form a complete price behavior trading strategy, more knowledge and skills are required.
This is a method used to understand market trends through price behavior analysis. It is not flawless, but it is definitely a solid first step towards price behavior trading.
New entrants are advised: do not get liquidated, can make money, and avoid 3 years of detours.
From the first day of entering the market, I told myself: first learn 'survival', then talk about making money.
Making money in the cryptocurrency market does not rely on luck, but on—risk control, rhythm, and execution.
Sharing a few survival tips for beginners in the cryptocurrency market that can help you avoid losing 80% of your money unnecessarily.
One, three things to get started: avoiding pitfalls is the first lesson.
1️⃣ Understand the core concepts of contracts.
Newcomers are advised to first understand 'perpetual contracts' → which have no delivery date, making them more suitable for practice.
Leverage is not a tool for doubling: Under 10x leverage, losing only 5% will halve your principal.
Must set stop losses: It is recommended to set a stop loss line of 5%-10% for each transaction (only if you can afford the loss do you have a next time)
2️⃣ Choosing the right platform is the bottom line.
Small platforms have a high rate of running away; beginners are advised to choose transparent and large platforms.
Pay attention to transaction fees; a reasonable spot fee is ≤0.1%, and for contracts, pay attention to the funding rate cost.
3️⃣ Remember one word: risk control > technology.
No resistance to losses: cut losses when you lose, don’t hold on stubbornly;
You can recover from losing money, but if you get liquidated, you're out.
Two, trading strategies: earn 'understandable' money.
4️⃣ Two rules for trend trading.
4-hour chart moving average judgment: 50-day > 100-day > 200-day = Uptrend.
MACD golden cross + RSI > 50 = higher winning rate.
5️⃣ A little mnemonic for swing trading
Do not buy the dip when falling: Wait for confirmation of standing firm with 3 bullish candlesticks.
Do not chase high prices when rising: Stay away from moving averages greater than 20%, as it is easy to chase at the top.
Three, capital management: How to train your market sense with 8000 yuan.
6️⃣ Leverage Advice
It is advisable to control leverage within 5-10 times: for example, with a principal of 8000 yuan, do not exceed 80,000 in maximum position.
Take some profit first (e.g., if you earn 1600, take out 20%) to protect your winning fruits.
7️⃣ Gradual position building is a basic skill.
Invest 40% for the first position, and split the rest into two additional purchases.
This way, even if wrong, there is room for adjustment, and not a total wipeout.
4. Practical Steps (Taking BTC as an example)
8️⃣ Complete trading process:
Only choose mainstream coins (BTC/ETH) that are resilient and stable in volatility.
Bullish moving average arrangement + MACD golden cross → Consider going long.
Set your take profit/stop loss when building a position, do not be vague.
Check positions every night, adjust stop losses to lock in profits.
Five, 3 'life-and-death雷区', do not step on!
Avoid small coins that surge (a scene of market manipulation)
High leverage = high liquidation rate (do not fantasize about doubling overnight).
Fully invested = betting everything, with risks uncontrollable.
In conclusion:
The cryptocurrency market is an emotional arena, where greed and fear both influence judgment.
Doing trades is also about doing oneself.
I hope that after reading this article, you can avoid detours, safeguard your principal, and live with clarity.
In the cryptocurrency market, earning 1 million can be achieved by either relying on a bull market and holding, betting on a skyrocketing coin, or leveraging to bet on the correct direction. But most people lose money, so don't just look at wealth stories, first think clearly about how much risk you can bear.
If you are also a technology enthusiast in the cryptocurrency space, click on the coin's homepage.
Click on my profile to follow me for first-hand information and in-depth analysis!
