After 10 years of trading cryptocurrencies, I have seen too many people wanting to get rich quickly with a single bet, but those who can truly survive and make stable profits are often the ones with strategies and discipline. Today, I will share a practical strategy I have used for many years—grid trading method, which only has five core steps, but details determine success or failure.

1. Core strategy: grid trading, mechanical execution

  1. Divide the capital into 5 parts: for example, with a principal of 100,000, each part is 20,000. Only one part is used for a single trade, and no additional investment is made.

  2. Open position at the current price: After selecting a cryptocurrency, buy the first part at the current price.

  3. Supplement position after a 10% drop: Buy one part for every 10% drop, buying more as the price falls to average out the cost.

  4. Take profit at 10%: Sell a portion every time it rises by 10% to lock in profits.

  5. Cyclical operation: When funds run out or coins are sold out, one cycle ends, and you start over.

2. Key optimizations of the strategy (summary of ten years of experience)

  1. Fluctuation range can be adjusted:

    • Beginners are advised to use a 10% range to avoid frequent trading;

    • Experienced traders can narrow it to 5%-8%, combined with high-volatility coins (such as ETH, SOL) to improve capital turnover rate.

  2. Coin selection is critical:

    • Only select mainstream coins in the top 20 by market capitalization (such as BTC, ETH) and avoid altcoins!

    • During a market crash, mainstream coins have a much higher probability of rebounding than altcoins.

  3. Utilization of idle funds:

    • During the waiting period, funds can be placed in Binance 'Flexible Savings' or USDT wealth management, with an annualized return of 3%-5%, to hedge opportunity costs.

3. Case calculation: How to roll over 100,000 principal?

  • Assuming 20,000 per share, if the coin price drops from 1 yuan to 0.5 yuan, you buy in 5 times, with an average cost of about 0.7 yuan.

  • When the coin price rebounds to 0.77 yuan (cost price + 10%), the first portion takes profit, earning 2,000 yuan.

  • If prices continue to fluctuate, it may trigger 10-20 trades in a year, with annualized returns reaching 15%-30%.

  • Key point: Do not pursue selling at the highest point; earn the difference through fluctuations, accumulating small victories for a big win.

4. Risk warning (blood and tears lessons)

  • Black swan events: If encountering extreme market conditions (such as a LUNA-like collapse), grid strategies will fail, and a stop-loss line must be set (e.g., if total capital loss reaches 20%, withdraw completely).

  • Liquidity risk: Avoid choosing small exchanges or low trading volume coins; otherwise, buy and sell orders may be difficult to execute.

  • Mental management: The human weakness of not daring to buy when prices fall and not wanting to sell when prices rise must be executed mechanically!

Summary

The essence of this strategy is to use discipline to combat human nature and to earn profits through fluctuations. It cannot make you rich overnight, but it can help you accumulate chips in a bull market and survive in a bear market. Over the past 10 years, I have relied on it to grow from 50,000 to seven figures; the core is not to predict the market but to stay at the table forever.
Remember: The key to successful trading is not how much you earn at once, but how many times you can earn repeatedly.

In the past, I stumbled around in the dark alone; now the light is in my hands.

The light is always on; will you follow? @今酒