In the cryptocurrency world, some people become rich overnight, while others lose everything.
I am not some profound cryptocurrency mentor, I haven't created courses, nor do I earn commissions; I'm just an old hand in the crypto space who has struggled for many years, faced liquidation, and stumbled through many traps.
Today, I will share my bottom-line "survival rules." Whether you can grasp them depends on your respect for the market.
I have a friend who came to me last year with 2700U, determined to make back the money he lost before.
I didn't explain the complex moving averages or MACD to him; I simply gave him three practical tips.
He followed them for 3 months, and his account surprisingly reached 50,000 U without a single liquidation.
First, divide the money into three parts, prioritizing survival. I told him to split the 2700U into three 900U portions, not to touch a cent of it.
The first part is for short-term trading; open positions a maximum of twice a day, and close the software after trading; greed can lead to trouble. The second part waits for trends; if there is no bullish pattern on the weekly chart or the key level is not broken with volume, just wait patiently. Random operations during volatile markets are like giving away money. The third part is the lifesaving money; when the market spikes and risks liquidation, use this to average down, as preserving the principal offers a chance for recovery.
Second, only bite into trends, while the rest stays in the shell.
In volatile markets, I have stumbled too many times. Later, I only recognized three entry signals: if the daily moving averages do not show bullish alignment, avoid positions; if the market breaks previous highs with volume and the daily closing is stable, then enter with a small position; when profits reach 30% of the principal, withdraw half of the profits, and set a 10% trailing stop on the remaining to secure gains.
Third, lock in emotions and execute mechanically.
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