At three in the morning, staring blankly at the K-line, my phone was still frantically popping up notifications about 'picking up leaks at low positions and turning things around with one click'. Looking back now, that was not an investment tip, it was clearly a 'pig-killing invitation' dragging me into a pit!
As an old hand who has been in the crypto world for 8 years, at my worst, I was so broke that I had to think twice about whether to add an egg to my takeout. It wasn't until I fell enough times that I suddenly woke up: where is there really a myth of 'a single bet turning things around' in this circle? The more eager you are to make quick money, the more likely you are to become someone's chives under the scythe. The real password to making money has never been about daring to rush in, but about knowing when to hit the gas and when to pull the handbrake without hesitation.
Today, I’ll share with you the core logic that took me from 200,000 to 40 million, all hard-earned insights built on blood and tears. Follow this, and you can avoid three years of detours:
1. Selecting targets: Only catch “sustainable major upward trends”; ignore all the distractions.
In the past, my biggest mistake was holding onto seven or eight cryptocurrencies at the same time, busy as if I were a babysitter for my crypto assets. As a result, I couldn't keep track of any of them; I panicked and sold when any rose slightly and stubbornly held on when they fell. Now I've realized that good targets must meet three hard conditions; missing one means I won’t touch it:
Break through key resistance levels + volume doubles: It's not just a casual rise that indicates a start; it must stabilize at key price points, and trading volume must be at least 50% higher than the previous day. That's when real funds enter the market. For instance, on the day last year when a certain Layer1 cryptocurrency broke through $80, the volume skyrocketed by 70%. I decisively jumped on board and reaped the subsequent gains.
Core players in the sector: Don't touch the “hype-chasers”. When Layer2 is hot, focus on leading projects. When the MEME wind picks up, grab the consensus leaders. Those obscure small cryptocurrencies, which are hard to pronounce, rise quickly but fall even faster; investing in them is a sure way to lose.
Circulating supply of 400-1 billion USD: An excessively large market cap can’t rise, like an elephant dancing. Conversely, a small cap can easily be manipulated; the main force pulls up and then runs away, leaving retail investors unable to even catch the falling knife. Currently, I only keep two target assets at most; focusing my energy allows me to monitor closely and accurately capture every signal.
2. Rolling position technique: Add when making a profit, stop when losing, and never hold onto losing positions against the trend.
Starting with 200,000 in principal, I didn't dare to throw it all in at once. Instead, I divided it into four parts, using the approach of “scouts + main forces”:
Trial position: First, take 50,000 as a “scout,” and only enter the market when the target meets the previously mentioned starting conditions. Set the stop-loss line strictly at 7%; no matter what happens, I will not hold onto the position. Even if I incur a small loss, it won’t affect my subsequent operations;
Additional position: Only when profits reach 30% will I add 70,000 as the “main force.” After doubling, I would only then dare to slowly enter with the final 80,000. In the past, I would panic and keep adding on the way down, thinking “I’ll just add a bit to lower my cost,” but the more I added, the more trapped I became. In the end, it was much harder to break even than to climb a mountain. Now I remember one thing: Before making a profit, I will never increase my position; adding to a losing position is just aiding the loss!
3. Position control bottom line: Surviving is the prerequisite for making money; principal is always the priority.
This is what I value most, and it is the key to survival:
Single cryptocurrency position must never exceed 25% of total holdings: No matter how optimistic I am about a target, I will never put all my eggs in one basket. Last year, after a cryptocurrency doubled, I withdrew 80,000 to convert into stable assets; securing profits is the key, and the rest can continue to roll.
Maximum loss per trade must not exceed 5% of total holdings: There was a time when one of my holdings hit the stop-loss line, but that afternoon it rebounded. People around me laughed, saying I had “sold too soon,” but I have no regrets. Later, I discovered that was a trap set by the main force; if I hadn't cut my losses then, it would have dropped directly by 30%, and my losses would have been much greater. Remember, the crypto world is not short of opportunities to make money; what it lacks are those who can protect their capital and survive until the next opportunity comes.
A close friend of mine tried my logic with an initial investment of 5,000 USD, strictly adhering to “run if it drops 4%, take half profit if it rises 15%.” After five months, he reached 100,000 USD, and now he calls me “Master” with a big smile.
In fact, making money in the crypto world is not that mysterious; the challenge lies in controlling that urge to “take a gamble.” I used to charge in recklessly and ended up bruised; now I follow the rules step by step, and I find myself getting steadier.
