Family, who understands! The SEC's approval of the Bitcoin spot ETF has sent the cryptocurrency world into a frenzy, with Bitcoin prices skyrocketing. A group of people in my social circle are shouting 'The crypto market is taking off, let's go all in and get rich!' I can almost smell the excitement through the screen. But hold your horses! As an analyst who has been in the crypto market for 8 years, I can confidently say: this wave of good news is real, but to make money from it, you need to switch your mindset from 'gambling mode' to 'rational mode'!
Thinking back to the time when Ethereum-related policies were implemented, the surge of mainstream coins rising 50% in a month was indeed tempting, but let's not forget that half of the retail investors who rushed in were buying at the top, and 30% couldn't hold on and exited midway. Those who really profited were the disciplined 'old hands'. The approval of the Bitcoin ETF may seem like a booster shot for the market, but in reality, it's a 'big test' for retail investors. Today, I'm going to share my ultimate practical strategy to help you avoid those obvious pitfalls and turn good news into real profits.
First of all, regarding positions, I have always emphasized the "spare change investment method," which is a rule I have summarized after falling into numerous pitfalls. Investing 15%-20% of the total capital is enough, don't add a single extra cent! Don't think that "going all in is the only way to make big money." Just last week, I met a fan who used 50% of their position to chase Bitcoin at $48,000, and the next day it dropped to $46,000. They messaged me in the middle of the night saying they were anxious and couldn't sleep, worried about selling at a loss or missing out on potential gains, turning themselves into a "nervous shareholder." What’s the point of that? Use spare money to play, if it drops, don’t panic; if it rises, don’t get carried away. This is the first principle of survival in the crypto world.
Secondly, regarding the selection of targets, I’ll be straightforward: only focus on top mainstream coins, and don’t touch small coins! With the approval of the Bitcoin ETF, the direct beneficiaries are certainly BTC, followed by mainstream coins like ETH and SOL that have ecosystems and stable trading volumes. Institutional money doesn’t just come from thin air; how could they possibly invest in those air coins that lack fundamentals and liquidity? Yesterday, a novice fan privately messaged me, asking if a certain "Bitcoin concept coin" was worth buying. I checked the data and found that the top 10 holding addresses controlled 80% of the chips. Isn’t this just a trap set by the market makers for retail investors? I replied to them with three words: "Send money?"
Finally, the discipline of taking profits and cutting losses is more effective than shouting "take off" a hundred times. I set my stop-loss line at 5%. For example, if I bought Bitcoin at $47,000, I would immediately exit if it drops to $44,650, never clinging to the fantasy of "it will bounce back." The market will not change its trend because of your obsession; the feeling of being deep in a loss is far worse than a small loss. For taking profits, I use the "partial cashing out method": sell 30% when it rises 15%, securing some profits; sell 50% when it rises 25%, locking in most of the profits; for the remaining 20%, use a trailing stop-loss. For instance, if it rises from $47,000 to $54,000, I would raise the stop-loss to $51,000, so even if it later pulls back, I won’t give back the money I made. A friend of mine bought ETH last year, and when it rose from $1,800 to $2,200, he didn’t listen to my advice to take profits. As a result, it dropped back to $1,900, and he slapped his thigh, telling me he "regretted it so much." Isn’t that lesson enough?
To be honest, the approval of the Bitcoin ETF is indeed a long-term positive for the crypto world, indicating that the crypto market is being recognized by the traditional financial system. However, short-term trends are never "a straight line going up." Retail investors should not aim for "quick money on the first day of good news," but rather for "steady money under the rules." I have seen too many people bet right on news once, only to lose all their profits back due to greed. The secret to making money in the crypto world is never to bet on news but to avoid pitfalls with every operation.
Alright, that’s it for today’s valuable content. Follow me!
