Who hasn't dreamt of 'doubling overnight' in the crypto scene? Back in the day, I jumped in with the hard-earned money I had saved for 3 years, spending my days in various communities looking for so-called 'insider news'. Whenever someone shouted 'go', I would follow suit with my entire position, like a total victim led by the market. As a result, I faced three liquidations within six months, and my six-figure principal shrank to three figures. During that time, I couldn't even afford to buy a hot dog from the convenience store downstairs. Looking back now, it was like I was just delivering groceries to the market.
After 7 years of trial and error, I have encountered enough pitfalls to circle the neighborhood three times, and finally realized a principle: the crypto space is not a casino where one bets on luck; those who stand firm for the long term are not just transient visitors making quick money from 'insider' information, but rather 'tough individuals' who execute simple rules to the extreme. Today, I will share my six 'foolproof methods' that I have gleaned from my painful experiences of liquidation. Newcomers can follow these steps to at least avoid 3 years of detours.
One, select assets from the anomaly list; don't be misled by 'news dealers'.
Let's just say, in my early years, I was fooled by the rhetoric of being 'led by big shots' to the point where I almost lost my pants. Later, I discovered that all the assets that genuinely entered with real money would leave traces on the anomaly list, which is a thousand times more reliable than the chatter in communities. My unique strategy is to monitor the anomaly list for the past 15 days, only adding assets that have seen a volume increase for three consecutive days to my watchlist. You see, funds never lie, but people do — those who boast 'guaranteed profits' are often leading you into a trap.
Two, the monthly golden cross determines direction; counter-trend bottom fishing is purely handing over your head.
The most common mistake beginners make is to shout 'bottom fishing' the moment they see prices drop. I fell into this trap during my first two liquidations. Even though the monthly line was still in a death cross zone, I brainwashed myself into thinking 'it's reached the bottom', only to be repeatedly ground down by the trend. Now I have set a strict rule: I will only use 20% of my principal to enter when a monthly MACD golden cross appears. Until the trend gives a clear signal, no matter how tempting the asset looks, I will not reach out — after all, going against the trend only leads to being forced to lose money.
Three, the 60-day line is a 'safety cushion'; never act recklessly without a signal.
Fans often message me asking, 'When is the best time to enter?' The answer lies in the 60-day moving average. This line is the core support area for major funds. My judgment is simple: only when the asset price approaches the 60-day line, and the trading volume increases by more than 30%, is it a signal to enter. Last year, I monitored an asset for 21 days and only acted when the signal appeared. Although I didn't catch the very bottom, the price rose by 25% three days after I entered. It's a stable gain — isn't this steady happiness more appealing than the thrill of chasing highs and lows?
Four, run when the line breaks; don't fall in love with profits.
Making money isn't actually difficult; the hard part is 'holding onto profits'. I made this mistake early on, being reluctant to sell after earning 20%, only to see it turn into a loss in the blink of an eye, turning a floating profit into a floating loss. Later, I set a strict rule: as soon as the held asset falls below a key moving average, regardless of how optimistic I am about its future, I will immediately liquidate my position. Once, after an asset broke down, I reluctantly sold, only to see it drop another 40% afterward. Thinking back now, it sends chills down my spine — profits are earned, not held stubbornly; don't get emotionally attached to your holdings; they won't show you any mercy.
Five, take profits in stages; don't be greedy for that 'last penny'.
There are always people who want to make money from every penny in the market, only to end up being taught a lesson by it. My profit-taking strategy is particularly rigid, but it works: when the increase reaches 30%, reduce the position by 50%, and set a trailing stop for the remaining position; when it rises to 50%, further reduce by 30%, leaving only 20% of the position to bet on the continuation of the trend. Last year, I used this method on an asset; even though I didn't hit the peak, the profits I pocketed were double those who stubbornly held on through corrections. Remember, securing profits is the real deal; greed is the deadliest trap in the crypto space.
Six, clear out as soon as the 60-day line is broken; staying alive gives you a chance to turn the tables.
This is the rule I value the most and is truly a 'life-saving talisman'. Once the 60-day line is effectively broken, it indicates that the short-term trend has completely reversed. Don't fantasize about 'catching a rebound', and don't believe the nonsense about 'all bad news has been released'. During the market downturn in 2022, I managed to preserve 70% of my principal by strictly adhering to this rule, and when the market warmed up, I quickly recouped my losses. In the crypto space, staying alive is always more important than temporary profits; as long as your principal is intact, you need not fear about running out of fuel.
To be honest, these 6 methods might not seem 'sophisticated' at all, and might even seem a bit foolish, but 7 years of practical experience tells me: the simpler the rule, the more it can help you navigate through the bull and bear cycles of the market. Last year, several followers I mentored strictly followed these methods, and the worst of them made a 40% profit, which is far better than those who chased news and fumbled around every day.
