The result was a loss of half a year's salary in three days, and I couldn't sleep at midnight, staring at the K-line and shedding tears. To be honest, in the five years I've been in the crypto space, I've seen too many people rush in with dreams of 'getting rich overnight,' only to be severely taught a lesson by the market. It's not that they didn't work hard enough; they just didn't understand the underlying logic of profit! Today, I’m sharing the 9 practical rules I've kept hidden, which can help you go from a beginner to steady profits. I recommend you save this and review it repeatedly!
First, entering the market with spare money is a lifeline, and I've emphasized this a hundred times! Last year, a fan contacted me for advice, saying they secretly borrowed online loans to trade cryptocurrencies. As a result, when the market corrected, they went bankrupt, not only racking up a huge debt but also causing a rift at home. We need to be clear: the crypto market is highly volatile. You might make a fortune today and lose everything tomorrow. Only by using idle funds to participate can one maintain a stable mindset during market fluctuations. If you invest your money for food and mortgage, that’s not investing; it’s gambling with your life!
Secondly, when selecting targets, you need to focus on real value and not get distracted by trends. New coins pop up every day in the market, and some projects even have poorly written white papers and rely on marketing hype to attract attention. Many newbies see 'certain big names endorsing' or 'soon to be listed on major platforms' and rush in without a second thought; isn’t that just giving away money? When I select projects, I first look at whether they have real-world applications, such as solving industry pain points or whether the technical team is competent. Then, I pair it with a reasonable funding allocation plan, such as dividing funds into several parts and investing in projects at different stages; this is the key to stable allocation, as only reliable projects can go far.
Then there's building positions in batches; don’t go all in at once. Many people see the market rising and think, 'I need to go all in quickly to make more profit,' but they buy just before a correction and end up stuck at high prices. Each time I build a position, I split the funds into 5-10 parts, for instance, initially investing 20%. If the market drops, I’ll increase my position based on the decline; this can both lower the average cost and avoid significant losses from sudden risks. Like last year's second half, there was a potential coin that suddenly corrected 30%, but because I built my position in batches and bought two more times, my cost was significantly reduced. Later, when the market rebounded, I quickly turned a profit.
Also, diversify your allocation; don’t put all your eggs in one basket. There was a fan who was particularly 'single-minded' and went all in on a meme coin, but when the project team ran away, he lost everything. I always advise everyone to spread their funds across different sectors; for example, invest part in mainstream coins, part in promising quality altcoins, and keep some as a reserve. This way, even if one sector encounters problems, the other parts can hedge against risks, preventing a total loss. Like earlier this year, one sector overall corrected, but another sector I allocated performed well, and my overall returns weren’t significantly affected.
The information gap often determines the level of profit, and this is crucial! The cryptocurrency market changes rapidly; policy adjustments, technological breakthroughs, and industry collaborations can all affect price movements. I spend 2-3 hours every day looking at industry news, such as following authoritative industry media, core project announcements, and communicating with friends in the industry. Sometimes, catching an important signal early can give you a competitive edge. For example, when a certain country previously introduced favorable policies for the crypto industry, I strategically invested in related projects, and later the market rose, resulting in significant profits.
Additionally, go with the flow; don’t go against the market. Some newbies are particularly 'stubborn'; when they see the market declining, they think, 'it’s already dropped so much, it will definitely rebound,' and insist on bottom fishing, only to find it keeps dropping; when they see the market rising, they think, 'it’s risen too much, it should correct,' and rush to short, only to be harshly slapped in the face by the market. The market is always right; we need to learn to follow the trend. For instance, when the market is in an upward channel, we should go long; when it’s in a downward channel, we should patiently wait until the trend is clear before taking action. Don’t always think about 'making big money by going against the trend'; that’s not smart, it’s arrogance.
Friends trading contracts, please pay attention, leverage must be controlled well! Many platforms now offer high leverage, and some newbies think, 'the higher the leverage, the more profit,' so they jump in with 100x leverage, only to be liquidated by a small fluctuation. I've been trading contracts for many years, and I've never exceeded 50x leverage; generally, I use 20-30x, and I also set stop-loss and take-profit orders. Remember, leverage is a double-edged sword; if used well, it can amplify profits, but if not, it can accelerate losses. We must set it according to our risk tolerance and not joke with our own capital.
Position management is also critical; when in doubt, it’s better not to act. Some newbies can’t help but trade every day; they want to buy when they see a coin rising and sell when they see it falling. As a result, after frequent trading, they pay a lot in fees but gain little, and they easily incur losses due to trading mistakes. I usually review my assets regularly, for example, summarizing once a week to see which projects perform well and which do not, then adjust my positions according to market conditions. When uncertain, I stay put because being inactive means there's no risk of loss.
Lastly, mindset is king; it determines the final outcome. It’s normal for cryptocurrency prices to fluctuate; some people get euphoric when prices rise and want to go all in immediately, while others panic when prices drop and rush to cut losses. This mindset makes it hard to profit in the long term. Before entering the market, I always clarify my take-profit and stop-loss signals; for example, when the price reaches a certain level, I sell part of it, and when it drops to a certain level, I cut losses. No matter how the market fluctuates, I strictly follow the plan and maintain a calm mindset. Remember, the essence of making a profit in the cryptocurrency space is a dual victory of mindset and system; only with a steady mindset can we stand firm in the market.
In the crypto space, there’s never a shortcut to success; going from loss to profit is simply about adhering to principles and deeply understanding the system, gradually finding a profit-making method that suits you. I share industry analyses and practical tips on my account every day, hoping to help everyone avoid detours and pitfalls. If you find this content helpful, don’t forget to like and follow; more valuable content will follow, and feel free to share your experiences in the comments. Let’s achieve stable profits together in the crypto space, and I wish everyone a profitable position!
