During that time, I had fallen to the bottom, and at that moment, I thought I could be considered a big shot in the cryptocurrency world. I resolutely quit my job to focus on trading cryptocurrencies, even borrowing money to trade. However, reality gave me a hard slap in the face; the financial crisis caused me not only to lose all my profits but also to accumulate a huge amount of debt, ultimately forcing me to sell my house.
That period was my darkest moment. In just a few months, I experienced a fall from the peak to the bottom. But it also made me realize that the previous smooth sailing had a lot to do with luck.
Therefore, I feel that if I really want to continue down the trading path, I have to study diligently. Besides understanding the basic knowledge, I should also analyze news and study technical indicators. If I do not conduct in-depth research and reasonably plan to manage my finances, my funds will only be exhausted in the end. Ultimately, as a retail investor with no foundation, I will only joyfully enter the market and leave in disappointment.
In the following three years, I severed all contact with classmates and friends, stayed indoors, and tirelessly reviewed the market day and night. When tired, I would lie on the keyboard and sleep. After this hard work, I finally achieved financial freedom through trading coins.
Summarized eight major principles. The words are few, but each is worth a thousand pounds. Whether you are new or an old player, reading carefully can save you five years of detours!
The above eight principles are errors I have repeatedly made in the past, and I now share them with everyone. Please study them carefully, practice continuously, and achieve a unity of knowledge and action. I hope to help cryptocurrency friends avoid several years of detours.
After mixing in the cryptocurrency market for so many years, I found that the most effective strategies are actually very simple. The methods I have personally tested have a success rate of up to 90% (four-step strategy + three don'ts + six rules), simple and practical! Sharing with everyone:
In 2025, in three months, I used a small account of 5000u to earn over 2 million U with the following methods:
If you are currently at a loss, spend a few minutes to seriously read this article!
Step one: choose the right coin.
Open the daily chart and first look at the MACD indicator. Only choose coins with golden cross signals (the MACD line crosses above the signal line from below), especially those that produce golden crosses above the zero axis. This type of signal has a higher success rate. In simple terms, this is the 'buy signal' given by the market.
Step two: determine buy and sell based on moving averages.
Keep a close eye on one moving average—the daily moving average (for example, the 20-day moving average). The rules are summed up in just two sentences:
Hold online: when the coin price is above the moving average, hold with confidence;
Sell immediately offline: once it breaks the moving average, clear the position immediately; do not hesitate.
This line is your 'safety belt'; break it and stop-loss; it’s simple and straightforward but effective.
Step three: position management.
1. Timing to add positions: If the coin price breaks through the moving average and the trading volume also increases and stabilizes above the moving average, consider adding positions.
2. Sell in batches:
Rise by 40%: sell 1/3 first;
Rise by 80%: sell another 1/3;
Break the moving average: sell everything left.
This can lock in profits and also avoid being trapped.
How to avoid the traps and risks of investing in the cryptocurrency market?
The cryptocurrency market is like a maze full of temptations and traps, attracting countless people to enter.
1. Formulating strategies before investing: risk management, fund management, position management.
The cryptocurrency market is a highly volatile market, full of uncertainty and risk; instability is the norm. Many people’s initial mistake is not establishing an awareness of risk management, fund management, and position management, showing no respect for the market, which leads to rapid losses.
Effective strategy formulation before investing is akin to the meticulous battle strategy before ancient warfare. Throughout history, every great victory in war is invariably due to pre-battle strategic planning.
Establishing effective risk management, fund management, and position management strategies can keep you in an offensive and defensive position, remaining invincible.
2. Refuse to blindly follow the trend; listen to news to trade.
News in the cryptocurrency market is flying every day, and most of it is designed to confuse retail investors, leading them step by step into the dangerous traps set by the major players, becoming the lambs to be slaughtered.
Investment must be based on calm decisions made from independent analysis, refusing to blindly follow trends and listen to rumors.
3. Adhere to long-term investment; do not pursue quick wealth with a short-term mindset.
The myth of getting rich quickly in the cryptocurrency market has led many investors to develop a short-term mindset seeking quick wealth, thus neglecting long-term stable investments. Many cases reflect attempts to achieve overnight wealth through short-term investment mindsets, ultimately falling into the abyss of losses and beginning to doubt life.
Investment is a lifelong affair. During this process, it is important to establish the correct investment concepts, stick to long-term investment, and achieve steady wealth growth.
The above three points are serious summaries, hoping to help investors who are currently confused in the cryptocurrency circle, avoiding repeating the mistakes of many others.
There are two ways to learn:
First: direct acquisition, summarize experiences from your own experiences to gain abilities.
Second: indirect acquisition, through others' experiences, summarize, apply what you have learned, and transform it into your own abilities.
Wise people will choose the second method, summarizing and transforming others' experiences and mistakes into their own abilities. This way, the painful price of making the same mistakes does not have to be paid for by themselves, reducing a large amount of money and time lost in trial and error.
We can utilize the stories and experiences of most people who lose money in the cryptocurrency market to summarize and transform them into our own investment experiences, achieving our original accumulation step by step and realizing steady wealth growth.
Newbie's comeback, mastering short-term trading to earn big!
Whether it is contract trading or spot trading, the core of making money lies in accurately grasping trends. Only by accurately determining whether the market is moving up or down can you achieve profits.
The market trends that have already occurred can only become history; the only thing that affects us is the trends that have not yet occurred. Therefore, the current focus is only one: the direction of the subsequent market.
If the trend is upward, you should naturally hold onto spot or go long to profit; if the trend is downward, you should reduce spot holdings or short contracts. However, there is a key point to note: the difference in cycles. Major trends bring dozens of times the return, while minor trends can only yield a few points of profit.
Therefore, whether choosing spot or contract trading, decisions must be made on the premise of understanding the difference between major trends and minor trends; otherwise, it is like gambling. Chasing highs and cutting losses will only lead to continuous panic and fatigue. Only by clearly understanding the trend cycles can you calmly respond to market changes and achieve stable profits.
In the technical field, mastering small cycle operations is not difficult. You only need to learn some naked K techniques, and capturing a dozen points in the market is basically easy.
To perform small cycle short-term operations, you only need to meet three conditions to basically ensure profitability: accurately find support and resistance levels. Have enough patience to wait for the market trends you understand.
Have enough time to monitor the market and strictly implement take-profit and stop-loss measures.
For friends who want to do short-term trading, you only need to master a small trick to easily turn losses into profits.
As long as you keep practicing, short-term trading will become like a production line, and when opportunities arise, just follow the steps to execute.
In this mysterious field of opportunities and challenges in the cryptocurrency market, some people become rich overnight, while others lose everything.
When you go from tens of thousands to a hundred thousand, you will touch on some insights and logic of making big money, and your mindset will stabilize a lot.
After that, it was about continuously copying successful experiences.
Stop fantasizing about millions or even billions. Start from your own reality and avoid empty talk, as boasting will only make the bull comfortable.
Two years ago, I met a senior in Shanghai who easily withdrew over 12 million from the cryptocurrency market using the simplest method. He taught us at that time, 'The way is always simple. Trading coins, if you make it too complicated, the more you consider, the more inaccurate your judgment will be.'
Those who lose money trade coins like this. To profit, it is actually very simple; just find a method that suits you and that you are good at, and keep doing it repeatedly. Unknowingly, your account numbers will rise.
Here are a few rules he shared: if you can learn them, it won’t be a problem to at least make some pocket money, even if you can’t earn dozens or hundreds of times like the predecessors.
First, wait for the highs and lows. When the market is in a sideways consolidation phase, it is best to observe for a while, because after consolidation, the market will change. It’s best to take action after the market shows clear trends.
Second, do not become attached to hot positions; positions should change frequently. From start to finish, it may all end up empty. Short-term trading of popular positions is all speculation; once the heat is over, funds will immediately exit, and if you are slow, you’ll be left alone in the wind.
Third, rising gaps with hopes of large gains. During the rise, the K-line moves slowly upwards, appearing as a high opening bullish candlestick, and the trading volume also increases, indicating that the market is entering an acceleration phase. At this time, we must remain calm, hold the ticket steady, as a big profit wave will follow.
Fourth, do not get attached to huge bullish candlesticks; exit decisively at the end of the day. Regardless of whether at a high or low position, after a huge bullish candlestick appears, there will be a pullback. Even if it hits the limit, you should exit to prevent profit withdrawal.
Fifth, buy on online bearish candlesticks but sell on offline bullish candlesticks. Here, 'line' refers to moving averages or important support or resistance levels. Short-term traders generally only look at daily moving averages and daily attack lines. I don’t like to drag things out; I usually only hold for three days, at most not exceeding one week, no matter how good it gets afterward, it has nothing to do with me.
Sixth, do not chase highs, do not sell, do not jump into the water, do not buy, and remain unmoved in a sideways market. This can be said to be a basic principle for survival in the cryptocurrency market. If you want to survive in the cryptocurrency market for a long time, you must remember this phrase well.
Seventh, start buying. Prepare first; it’s better to enter less than to enter too much. No matter how confident you are, you cannot invest all your funds at once. Because in the cryptocurrency market, the only constant is change.
Eighth, learn to read news, learn to interpret market information. When major market news comes out, it is usually the time when cryptocurrency prices fluctuate the most, possibly soaring or plummeting. Traders need to make judgments. For beginners, it is recommended to mainly observe while waiting for major news.
Ninth, learn to analyze technical indicators and master technical knowledge. Learning technical indicators requires long-term accumulation. Create a study plan for yourself to understand moving averages, KDJ, Bollinger Bands, candlestick patterns, volume-price relationships, capital flow, etc.
Tenth, make a good trading plan. Do not trade frequently. Frequent trading not only incurs high transaction fees but also affects trading mindset and leads to a loss of rational judgment.
Eleventh, do a good job in risk control. During trading, ensure stop-loss and take-profit measures are in place. Control risks, keeping both profits and risks within acceptable ranges. When the price reaches the stop-loss or take-profit point, the system will automatically assist me.
In fact, success is often very close to us. Sometimes, all it takes is to persist a little longer, and we might see the dawn of victory.
After this experience of trading coins, Xiao Zhang smiled and said: 'I don’t want to be a 'grasshopper' trader anymore; I also want to learn from Xiao Wang and wait for the right opportunity.'
In the end, those who have been through the rain always want to hold an umbrella for others. Having experienced days of isolation and helplessness, I feel for others when they incur losses. I want to reach out and help, to fill that regret of wanting a hand when I was in need, as if traveling through time to hold an umbrella for my past self who was drenched.
This is also the original intention of my sharing, hoping to help the majority of retail investors avoid some detours!
To help everyone avoid detours, I am also sharing insights I have summarized after ten years of trading coins, hoping that those who are destined to see this will take it seriously. Whether you are a newbie or an old hand, regardless of your wealth level or what stage you are at, it will be helpful to you. If you find my sharing useful, please share it with those around you so that more people can benefit!
The secret techniques have been given to you all; whether you can become famous in the jianghu depends on yourself.
I am Ah Xin. If you don’t know what to do in a bull market, click on my avatar, follow me, and I will share free strategies for bull market spot and contract trading.