My Experience with Cryptocurrency Trading, Learning is Earning

1. Beware of Bull Market Traps

Popular Coins = High-Risk Zone

Coins that are wildly FOMOed during a bull market are often heavily controlled and have significant bubbles.

→ Principle: Market makers attract retail investors to buy in, and once the funds withdraw, the drop is far greater than the overall market.

→ Countermeasure: It's better to miss out than to chase after popular coins that surge over 50%.

New Coins Launch with a Scythe

New coins strongly promoted by exchanges often follow the trilogy of "launch - surge - crash."

→ Case: A certain exchange's IEO project surged 10 times in 3 days before being cut in half, with 90% of retail investors trapped.

→ Iron Rule: Observe new coins for 3 months before making a decision, avoid emotional trading.

2. See Through Scam Patterns

The Formula for Scam Coins

"Violent Wash Trading → Stair-step Rises → Skinning Profits" is the standard process.

→ Data: Over 80% of scam coins have a lifespan of less than 1 year, with a zeroing rate exceeding 95%.

→ Solution: Only use 5% of your position to trade scam coins, take profits in batches.

Strongest Rebounds ≠ Greatest Potential

Coins that experience wild surges and drops are often speculative, such as Meme coins, which generally fall back over 80% after a short-term spike.

→ Truth: Quality projects typically have a volatility less than 1.5 times the overall market's amplitude.

3. Capture Long-term Opportunities

Time Dilutes Volatility

Mainstream coins like BTC/ETH have an annualized return of over 200% over 10 years, but must withstand short-term drawdowns of over 40%.

→ Strategy: Regular investments + cold wallet storage to avoid frequent trading.

Potential Coins Hidden in Obscure Areas

Truly valuable projects often have low trading volume before they take off, like C98, which surged 27 times after 11 months of sideways trading at the bottom.

→ Discovery Technique: Pay attention to GitHub code updates, institutional holdings, and other on-chain data.

Dark Horses in the Second Half of the Bull Market

Mainstream Layer1/Layer2 projects (like ATOM/NEAR) that were stagnant in the early stages often see a 3-5 times surge at the end of a bull market.

→ Key: Reserve 30% of funds to wait for right-side opportunities.