Cryptocurrency Investment in Recent Years: Insights and Actions from 60,000 to 3 Million

Looking back at the journey of cryptocurrency investment over the past few years, from an initial capital of 60,000 to an asset of 3 million, this journey contains not just numerical growth, but also the investment logic that has solidified amidst the fluctuations. Those seemingly simple principles are precisely the keys to navigating through market fog.

Market volatility is never a random carnival of euphoria and panic, but rather hides discernible signals. When prices quickly surge and then slowly retreat, it is often a market 'washout' action, aimed at filtering out short-term speculators; the real traps often lurk in 'sharp rises and falls'—when prices suddenly soar by around 40% and then plummet sharply in a short time, this 'temptation to buy' trend is most likely to trap those chasing high prices. Similarly, when the market sharply declines and then shows a slow rebound, it is by no means a signal to bottom-fish. If one rashly enters the market at this time, they may encounter even deeper subsequent declines.

Trading volume is a more honest 'market language' than candlestick charts. At high levels, if trading volume remains active, it indicates that capital is still flowing in, and the trend may have further extension space; however, once trading volume suddenly shrinks at high levels, it means that market enthusiasm is quickly receding, and timely withdrawal is the rational choice. During market downturns, a sudden surge in trading volume may not necessarily be a reversal signal; most often, it is a tentative entry of short-term funds; true trend reversals often occur after long-term consolidation, when 'sustained volume increase' becomes the norm, it is a sign that the market is about to start. It is important to know that trading volume is always a leading indicator of price changes; solely focusing on candlestick patterns to judge trends can easily overlook the underlying capital truth—just like before a certain cryptocurrency surged in 2025, its on-chain trading volume had already increased by over 200% for seven consecutive days, laying the groundwork for the subsequent price explosion.