Cryptocurrency Trading Insights: Starting with a capital of 1000u, I have achieved a return of 20 million. Learning this means earning.
① Beware of Bull Market Traps
Popular coins = High-risk areas
Coins that are crazily FOMOed in a bull market often have serious market manipulation and huge bubbles.
Market makers pull up prices to attract retail investors, and once the funds exit, the decline far exceeds the market average. It’s better to miss out than to chase popular coins that have surged over 50%.
New coins launching are often a trap; newly promoted coins by exchanges usually follow the pattern of "launch - surge - crash."
② Recognize Imitation Tricks
The harvesting formula for altcoins is "violent wash trading → stair-step rise → skinning the cat" and is a standard process.
Over 80% of altcoins have a lifespan of less than 1 year, with a rate of going to zero exceeding 95%.
Only use 5% of your portfolio to gamble on altcoins, and take profits in batches.
Strongest rebounds ≠ greatest potential
Coins that surge and crash often belong to speculative trading, like Meme coins that generally drop back over 80% after a short-term spike.
③ Capture Long-term Opportunities
Time dilutes volatility
Major coins like BTC/ETH have over 200% annualized returns over 10 years, but you must endure short-term retracements of over 40%.
Regular investments + cold wallet storage to avoid frequent operations.
Potential coins are hidden in obscure areas
Truly valuable projects often have low trading volumes before launching, like C98 which surged 27 times after a bottom consolidation of 11 months.
Excavation techniques: Pay attention to GitHub code updates, institutional holdings, and other on-chain data.
Dark horses in the second half of the bull market
Mainstream Layer1/Layer2 projects (like ATOM/NEAR) that stagnated earlier often see a 3-5 times price increase towards the end of the bull market.
Reserve 30% of funds to wait for right-side opportunities.
④ Top-tier Trading Mindset
Anti-human nature training: "buy on dips and sell on rises" is the norm, and you can automate this with grid trading: set to increase positions every 10% drop, and reduce positions every 20% rise.
Identify selling signals when the price breaks previous highs and then rapidly drops over 15%, with trading volume continuously shrinking → Immediately take 50% profit.
Sideways = Accumulation
Coins that experience 3-6 months of narrow fluctuations (amplitude <30%) have over a 70% probability of breaking out after surpassing resistance levels.
Advice for Retail Investors:
Action guideline: Complete research and build your position within 24 hours of discovering opportunities.
Information leverage: Focus on 5 core data sources (like CoinGlass long-short ratio, Glassnode on-chain metrics)
⚠ Risk Red Line: Single coin position ≤20%, never leverage all-in.
All coin friends remember: In the crypto world, surviving longer is more important than earning faster. The longer you mix in the scene, the wealthier you are!
