Summary of 8 Years of Trading Experience: The 4 Stages of Cryptocurrency Traders, Which Level Are You In?
The cryptocurrency market is a battlefield without day or night; some become rich overnight while others lose everything in an instant. But what truly determines your fate is not the rise and fall of the market, but the stage you are in.
I grew from 2 million to 60 million, experiencing all cycles, and gradually understood these 4 key stages:
Stage 1: Novice Period - Emotions Dominate, Frequent FOMO and Panic Selling
When first entering the market, every fluctuation puts you on edge. Prices drop after buying and rise after selling; a sudden crash at dawn keeps you awake all night, torn between “cutting losses” or “holding on,” often falling before the dawn.
Reality: 90% of losses stem from emotional loss of control, not technical errors.
Stage 2: Advanced Period - Starting to Understand Trends, Cautious Entry
After several rounds of lessons, you begin to focus on larger trends, such as macro policies and halving cycles. You gradually realize that real profits come not from frequent trading but from precise entries at key points.
Breakthrough Point: Transitioning from “FOMO and Panic Selling” to “Waiting and Sniping” is the first step towards profitability.
Stage 3: Expert Period - System is King, Calm and Collected
Traders in this stage have built their own trading models. After setting take-profit and stop-loss orders, they can put down their phones and sleep peacefully, no longer swayed by market movements.
Essence: Trading is not about how long you can stare at the screen, but about system and execution.
Stage 4: Despair Period - Blindly Increasing Positions, Emotional Breakdown
Heavy positions in altcoins, chasing highs during surges, high leverage leading to liquidation… transitioning from dreams of recovery to being repeatedly harvested, falling into insomnia, anxiety, and existential doubt.
Warning: If you are in this stage, please stop immediately. Don’t let “recovering losses” become a trap; correcting your direction is more important than blindly persisting.
Recognizing your current position is the first step out of confusion. Don’t rely on luck; true recovery comes from cognitive upgrades and long-termism.
