Three years ago, I entered the cryptocurrency space with 10,000 USDT, like a novice walking in the dark, nervously and excitedly watching the red and green fluctuations on the K-line chart. At that time, there were myths everywhere about 'doubling overnight.' Some made a fortune from insider information, while others achieved financial freedom by riding the bull market. But I had nothing and could only hold on to my limited capital, diving into trading with determination.

For 1,095 days, the first thing I do every morning upon waking is open the market software, staring at the fluctuating numbers on the screen, analyzing the changes in trading volume from the previous day, and reviewing the gains and losses of each trade. While others are busy seeking news and chasing hotspots, I focus like a 'diligent student' on honing my trading skills. From frequently chasing highs and lows and suffering painful losses to gradually understanding market patterns and learning to stabilize my mindset amid fluctuations, my capital has grown from 10,000 USDT to 830,000 USDT. There are no shortcuts; it relies on step-by-step accumulation. Today, I share six practical insights I've summarized over these three years, each one a lesson learned through real losses. Understanding one can save thousands, and mastering three can make one steadier than most retail traders.

1. Don't panic and cut losses during rapid increases followed by slow declines; it is likely that the operators are 'washing the market.'

I remember at the beginning of last year, a mainstream coin I held suddenly started to surge, rising 30% in just three days. Many friends around me were saying, 'It’s about to break the previous high,' and they eagerly added to their positions. But just when everyone thought it would continue to rise, the coin price began to slowly decline, dropping a little each day. It didn’t fall much, but it was frustrating, and some in the group started to panic, worried it was a 'top signal,' and they cut their losses and exited.

I looked at the market and noticed that although the price was falling, the trading volume remained stable, without any significant increase in volume. At this time, I recalled previous cases I had reviewed; often, after the operators push the price up, they do not immediately offload. Instead, they gradually bring down the price to wash out those retail investors with unstable mindsets, making room for subsequent rises. Therefore, I did not follow the herd to cut losses; instead, I patiently held on. Sure enough, half a month later, the price began to rise again, returning not only to previous highs but also gaining another 20%.

Later, I summarized the pattern: a slow decline after a rapid rise is mostly a washing operation by the operators. A real peak will not gradually decline; it will instead sharply increase in volume at a high level, attracting numerous retail investors to enter, followed by a 'crash' when the price suddenly plummets. By the time you react, you are already trapped at a high level. Therefore, when facing a situation of rapid rise followed by slow decline, do not rush to cut losses; first observe the trading volume. If the trading volume has not increased, wait patiently, and you are likely to wait for a rebound.

2. Be cautious of rapid declines followed by slow increases; do not mistake 'traps' for 'bargain opportunities.'

In the second half of last year, the market experienced a flash crash, and one altcoin I held dropped 40% in half a day. The group was filled with wailing; some said, 'It has dropped so much, it surely can’t drop any further,' and began to buy at the bottom. I observed the market, and after the flash crash, the coin price began to slowly rebound, increasing a bit each day, looking like it was about to 'bottom out.' However, I didn’t dare to act.

Because I realized that the trading volume during this rebound was particularly low, and the extent of the rebound was also quite limited, never breaking through the previous support level. This reminded me of past pitfalls; there was a time when I encountered a slow rise after a sharp fall, thinking it was a bargain opportunity, I decisively added to my position, only for the price to plummet again, trapping me deeply. I later understood that a slow rise after a sharp fall is likely the operators offloading their assets, creating a false appearance of a 'bottom' to attract retail investors to enter, and once their goods are mostly sold, they will crash the price again; this final blow is often the most severe.

So when encountering a rapid decline followed by a slow rise, do not blindly assume, 'It has already dropped so much; how much lower can it go?' First, observe the trading volume during the rebound. If the trading volume is low and the rebound lacks strength, be cautious; this is likely a trap set by the operators. It’s better to miss out than to enter lightly.

3. A volume increase at the top does not necessarily indicate a peak; a lack of volume is the 'danger signal.'

Many retail investors believe that a volume increase at the top is a signal of a peak; however, this is not necessarily true. I found in trading that when there is a volume increase at a high level, it may actually indicate there is still room for further increases. For instance, two years ago, when Bitcoin rose to $50,000, there was a situation of increasing volume. Many said, 'The volume is too high; it must drop,' and sold off. But I watched the market and saw that although the trading volume had increased, the buying power remained strong, and the price kept breaking new highs, so I did not sell and continued to hold.

Sure enough, after the increase in Bitcoin's trading volume, it rose by another $10,000 before adjustments began. Later, I discovered that when there is a volume increase at the top, if the buying power exceeds the selling power, it indicates that funds are still entering, and the market may continue. But if trading volume suddenly decreases at a high level and becomes very quiet, that is the real danger signal.

Once, a coin I held was consolidating at a high level with decreasing volume and very small daily fluctuations. I didn't pay much attention at first, but a few days later, the price suddenly collapsed, dropping 50% in a day. Since then, I learned that low volume at a high level is more terrifying than high volume; once I notice that trading volume is continuously shrinking at a high level, I must promptly take profits and exit, rather than regretting it after a collapse.

4. Don't rush into a single volume increase at the bottom; continuous volume increase is the 'real opportunity.'

Conversely, the changes in trading volume at the bottom also have their significance. Many retail investors see a single volume increase at the bottom and think it's an opportunity to build a position, rushing to enter, only to get trapped. When I first started trading, I also made this mistake. There was a time when I saw a coin suddenly increase in volume at the bottom, thinking it was a 'bottom signal.' I decisively added to my position, only for the price to drop back again, leading to significant losses.

Later, I understood that a single volume increase at the bottom is likely the operators trying to lure investors; they attract retail investors to enter with a single volume increase, then dump their assets, trapping retail investors inside. The real opportunity at the bottom is a continuous volume increase. Once, I was watching a coin that had been consolidating at the bottom for a long time. Occasionally, there were volume increases, but they were all single instances of volume increase, and I never dared to enter.

Until one day, this coin began to continuously increase in volume for three consecutive days, and the price was also slowly rising. I determined that real funds were entering before I began to build my position. Sure enough, after building my position, the price steadily increased, and I made a profit. Since then, I have summarized that one should not rush into a single volume increase at the bottom; one must wait for a continuous increase in volume and for the price to stabilize at the support level, as that is the real opportunity to build a position. This can reduce risks and increase the probability of profits.

5. The essence of trading cryptocurrencies is 'trading human sentiment'; trading volume is the 'emotion gauge.'

Many people trade cryptocurrencies by only looking at the K-line, believing that K-line trends determine everything. However, this is not the case. In my trading experience, I found that the K-line is merely a result of market conditions; what truly dictates market trends is the sentiment of the market participants, which is all reflected in trading volume. Trading volume acts like the market's 'emotion gauge,' reflecting the direction of funds and changes in market sentiment.

When the market is quiet, trading volume will be very small, indicating that most people are on the sidelines with no funds entering the market. The market often remains in a state of sideways consolidation; at this time, it's best to avoid entering lightly to prevent losing patience due to prolonged fluctuations. When trading volume suddenly expands, it indicates that funds are starting to enter, and market sentiment is changing, which could signal the beginning of a market move.

Once, the market had been consolidating for a long time, with very low trading volume, and I was also observing. Suddenly one day, the trading volume surged, tripling compared to the previous day, and the price began to rise. I judged this was a signal of funds entering and decisively entered the market, catching a nice wave of market movement. From that point on, I understood that trading cryptocurrencies cannot rely solely on the K-line; one must analyze in conjunction with trading volume to gauge market sentiment and the direction of funds, allowing for more accurate market predictions.

6. 'No' is the real skill: no attachment, not being greedy, and a stable mindset are essential for going far.

After spending a long time in the cryptocurrency space, one realizes that many people do not lose due to technical issues but rather due to mindset problems. Some people become obsessed with a particular coin; despite clear signals of a downturn, they refuse to cut losses, always thinking, 'It will come back,' and end up getting trapped deeper. Others are overly greedy; having already made a decent profit, they still want to earn more, unwilling to take profits, resulting in a market reversal that turns their profits into losses.

When I first started trading, I was also obsessed with coins I favored. Once, I hesitated to cut losses and ended up losing 30% of my principal; another time, I had already made a 50% profit but was too greedy, wanting to wait for a bigger rise before selling, only to have the market suddenly reverse and end up losing money. Gradually, I understood that the 'void' in trading is the real skill.

"No attachment" means not having any emotional ties to any coin; regardless of how much was earned previously, once a risk signal appears, decisively cut losses and exit. "Not being greedy" means taking profits when they are available; once the profit target is reached, take profits promptly, without seeking to 'sell at the highest point.' Now, when I trade, I maintain a calm mindset; when it's time to be in cash, I stay in cash and patiently wait for opportunities; when it's time to buy at the bottom, I act without hesitation or doubt. This isn't about lying flat; it's about honing my trading mindset. Only when the mindset is stable can one go further in the cryptocurrency space.

In my three years in the cryptocurrency world, I've seen too many people lose money and exit the market due to chasing highs and lows and unstable mindsets. I've also seen others make money by luck, only to lose it back through skill. In fact, the cryptocurrency world is never short of opportunities; what's lacking are those who can control their actions and see the market clearly. Many people think they are slow in their trades, but it's not about being slow; it's like stumbling in the dark, unable to find a direction. The 'foolish methods' I've summarized over these three years are like a light, hoping to help more people navigating the dark in the cryptocurrency space, so they don’t have to go in circles. By following the right direction and steadily taking one step at a time, they can achieve their goals.

Follow me @加密大师兄888 Many souls have perished on the cryptocurrency path; I only ferry those destined to meet.