When I first entered the cryptocurrency world, I was just like most newcomers— staying up late watching the market until my eyes hurt, chasing prices when they rose and cutting losses when they fell, ultimately losing so much I could hardly eat or sleep. Every time I was trapped, I comforted myself, 'Just wait a bit longer, it will rebound.' Looking back now, it wasn’t 'faith' at all; it was greed at work: wanting to earn more during a rebound and not wanting to leave the market when I was close to breaking even, resulting in being taught a lesson by the market each time, leading to liquidation.
Only after the market knocked me senseless did I understand one principle: in the cryptocurrency world, it’s not scary if you don’t understand initially, but it’s scary if you know you’re wrong and still persist. After that, I strictly forced myself to follow a 'foolish rule': if I haven’t waited for familiar signals, even if I see the market moving, I will never randomly place an order.
Relying on this strict rule, I not only survived in the cryptocurrency world but gradually found a way to earn stable profits. Now my annual returns can consistently stay over 50%. Today, I'm sharing 7 experiences that I gained through significant losses, hoping to help those who are still lost.
1. Try to wait until after 9 PM to make trades.
During the day, the news is too mixed, and true and false good news flies everywhere; beginners can easily be led astray into pitfalls. By the time night comes, the market direction becomes clearer, and there are fewer 'fake moves,' significantly reducing the probability of making mistakes.
2. After making a profit, put some of it in your pocket.
Don’t always think about 'withdrawing when it doubles'; greed often leads to giving back the profits. My habit now is that even if I only made 1000U today, I’ll withdraw 300U to transfer to my bank account and keep the rest for trading— the harshest tactic of the market is to make you see profits grow, only to take it all back in the end.
3. Trust indicators, not feelings.
For basic indicators like MACD, RSI, and Bollinger Bands, at least wait until two indicator signals align before entering the market. Placing trades based on 'a feeling this will rise' is no different from gambling; half of the mistakes I made early on were based on 'feelings'.
4. Stop losses must be flexible; don’t hold onto luck.
If you can monitor the market in real-time, set a trailing stop to lock in profits as the market moves up; if you can’t monitor, set a hard stop loss in advance (I usually set it around 3%) to prevent sudden crashes from wiping out your principal— stop loss isn’t a loss; it’s keeping your capital for the next opportunity.
5. You must withdraw profits every week.
Not mentioning the profits in my account, after all, it’s just numbers on the screen that can evaporate at any time. Now, I rigidly withdraw once a week, even if I only made a few hundred U. Over time, you will find that only when real cash is in your pocket is there real progress.
6. Trading must have a rhythm; don’t rush in.
When trading short-term, focus on the 1-hour chart; wait for two bullish candles to confirm the trend before chasing. Don’t rush in just because you see one red bar; when facing sideways markets, look at the 4-hour chart and wait until the price falls to a clear support level before deciding whether to enter— rushing to place orders is likely to be a loss.
7. These pits, be sure not to step on.
- Never exceed 10x leverage; beginners should ideally keep it below 5x. High leverage may look like it earns fast, but losses come even faster.
- Don’t touch those illogical, hype-driven shitcoins and dog coins; 99% are harvesting schemes, and entering them is just becoming fodder for the harvest.
- At most, open 3 trades a day; even if the first two trades are profitable, don’t impulsively open more. The more trades you make, the higher the probability of making mistakes.
- Absolutely do not borrow money to trade cryptocurrencies! Using spare money has risks; borrowed money will only lead to a collapse of your mindset, resulting in greater losses.
Actually, making money in the cryptocurrency world has no 'secret'; it’s simply about making fewer mistakes and avoiding pitfalls. A moment of greed can lead to a loss; timely stop losses can allow you to watch more market rounds. The real winners are never those who earn the most in one go but those who can stay in the game and survive— after all, being alive gives you the chance to earn more.
