Today, I will talk about how the crypto circle operates. From issuing coins to speculation, and finally to harvesting, the entire process is like a sandbox game. There is currently little regulation in the crypto circle, so many people treat it as a tool for making money.
Many people believe they won’t be the last one holding the bag, so they are willing to enter midway. This creates a game of passing the parcel, which also lays the groundwork for the eventual bubble burst. A netizen complained: "Isn't this just gambling, falsely named 'investment'?"
Issuing coins is simple; the hard part is making people buy them.
Issuing coins in the crypto circle is actually quite simple; anyone can issue coins on the blockchain. However, the difficult part is how to make people willing to spend money to buy your coins.
As long as there is popularity, traffic, and funds, even if this coin has no real value, it can still create some buzz in the market. A netizen said: "Isn't this just the birth process of air coins!"
Step 1: Choose a catchy name
The first step in issuing coins is to come up with a good name. For example, if I issue a coin called 'erb,' abbreviated as '2B'... After settling the name, just like a startup needs a business plan, the crypto circle needs a white paper. The white paper should clearly state the total supply, issuance price, how much the team holds, how much is publicly circulated, and attach a string of code...
These codes can actually be copied directly from others, just change the parameters. A netizen complained: "Isn't this just changing the soup without changing the medicine, just changing the name to make it a new coin?"
Step 2: Create a white paper...
The white paper is the 'financing tool' of the crypto circle, detailing the number of coins, price, team holding ratio, public issuance volume, and other information. Typically, the team holds a large amount of coins; for instance, 'Trump Coin' has 80% held by the team. Why? Because if the team doesn't hold enough coins, they won't be able to manipulate prices later.
Some netizens joked: "Isn't this just leaving a way out for oneself, so it's good to escape when harvesting leeks?"
Step 3: Large-scale promotion
Once the white paper is ready, it's time for promotion. We need to generate traffic and establish a persona through various channels. For example, find big players in the crypto circle for endorsement, or create topics to attract attention. Like 'Trump Coin,' which already packaged itself as a 'god' in the crypto circle through extensive promotion before issuing coins, even making many people idolize it.
With traffic and persona, there will naturally be people following when issuing coins. A netizen said: "Isn't this just a pyramid scheme, relying on person-to-person transmission!"
Step 4: Go on-chain
In the stock market, it’s called listing; in the crypto circle, it’s called going on-chain or ICO. Before going on-chain, it’s also necessary to gather some original shareholders, usually trusted insiders or associated companies.
If enough original shareholders cannot be pulled in, external investment may be introduced. Some netizens said: "Isn't this just the insiders playing by themselves, while outsiders can't make heads or tails of it!"
Step 5: Manipulate prices
After going on-chain, it enters the most exciting part—manipulating prices. The team can easily raise the coin price by holding a large amount of coins and manipulating market sentiment, attracting more people to enter.
Wait for the right moment to sell and complete the harvest. Some netizens complained: "Isn't this just harvesting leeks, treating newbies like fools!"
See the truth clearly, don’t be a leek; the essence of the crypto circle's operation is essentially a carefully designed game.
What kind of person is suitable for trading?
Having immersed in this field for ten years, my professional trading career has crossed six springs and autumns, accumulating over 3,100 days and nights. From long-term holding to short-term battles, from ultra-short trading to wave trading, I have nearly explored all types of trading strategies, and on this topic, I believe I have quite a bit of say.
I firmly believe that mastering any skill follows the '10,000-hour rule.' With eight hours of focus each day, year after year of reviewing and learning, it takes about five years to lay the foundation for stable profits. However, in this long ten-year journey, one inevitably faces numerous traps and challenges, so it is prudent to avoid letting the principal exceed one’s tolerance limit; this is a lesson I learned from my experiences in the crypto circle.
Many crypto experts who started with a few thousand capital and eventually traded up to tens of millions or even billions often fell due to excessive leverage in contract trading.
Many of them heavily invested. However, when a bear market hits, many of them disappear, but these stories are often buried and unknown to outsiders. In the face of massive market fluctuations, human nature often appears fragile, losing rational judgment.
Back to the point, next, I will share all my insights and techniques in cryptocurrency trading!
A recently hot topic is [How to make 1 million in the crypto circle?]
Step 1: Grasp market trends
First, learn to observe the market's overall trend. By checking the 4-hour, daily, or even weekly charts, determine whether the market is in an uptrend, sideways, or downtrend. Remember, go long when the market is rising, go short when falling, and maintain a wait-and-see attitude when sideways.
Step 2: Identify key positions
The market is like a high jumper; it will jump at different heights (key positions). These positions are usually the support and resistance points of the market. You need to find these key positions to enter and exit at the right moments.
Step 3: Look for entry signals
Once the market trend and key positions are determined, the next step is to look for specific entry signals in smaller time frame charts. Each person’s trading strategy is different, but the key is to quickly formulate and execute a trading plan.
Detailed explanation of trading strategies
Clarify trading goals: Determine which coin you want to trade and your holding volume.
Set direction: Decide whether to go long or short based on market trends.
Precise entry point: Use technical analysis
Find the best entry timing.
Set stop-loss and take-profit: Set reasonable stop-loss points to control risks, while setting take-profit points to ensure profits.
Respond to emergencies: Prepare strategies to cope with market uncertainties.
Post-trade processing: Summarize experiences and lessons after each trade to prepare for the next trade.
Insights and discipline in trading coins
Avoid chasing highs: Do not blindly chase rises; stay calm and patiently wait for the right buying opportunity.
Mindset determines success or failure: Maintain a stable mindset and do not be affected by short-term market fluctuations.
Strict stop-loss: Set a stop-loss point for each trade to avoid excessive losses.
Long-term perspective: Trading coins tests long-term profitability rather than short-term profits.
Patience and focus: Avoid frequently switching coins, focus on a few potential coins.
Respect the market: The market is always right; do not go against it.
Key points of technical analysis
Technical analysis is crucial in trading coins. It can help you predict market trends and find the best buying and selling points. But remember, technical analysis is not omnipotent; it should also be combined with market trends and fundamental analysis.
Position management
Reasonable position management can significantly reduce risk. Each time you open a position, do not exceed 30% of the total funds, and gradually increase the position after trend confirmation. At the same time, pay attention to controlling the loss margin of each trade to avoid a single trade having too large an impact on overall funds.
The true traits of traders revealed
In the ever-changing financial market, true traders are like navigators; they not only have steadfast beliefs and calm minds but also possess the wisdom to quickly adapt to market changes. Unlike those fleeting 'stars,' true trading masters like Buffett and Soros have names that have stood the test of time and continue to shine.
Essential conditions for traders
Becoming an excellent trader is no easy task; it requires individuals to possess multiple qualities. First, talent is fundamental; good trading talent allows one to keenly capture the market pulse and make accurate judgments. However, having talent alone is not enough; traders also need to have the ability to think independently, resist following the crowd, and stick to their trading strategies.
In addition, calmness and rationality are indispensable qualities for traders. During times of high or low market sentiment, being able to maintain a clear mind and not being swayed by emotions is key to avoiding major mistakes. At the same time, rapid learning and adaptability are essential skills for traders, as the market is always changing, and only continuous learning can keep pace with it.
Retail investor psychology and market games
Retail investors are often easily influenced by emotions in the market, leading to behaviors of 'chasing highs and cutting losses.' When market sentiment is high, retail investors tend to follow blindly, driving up prices; and when panic sets in, they are prone to panic selling, causing prices to plummet. This emotional trading behavior is precisely the weakness exploited by major funds.
Therefore, real traders need to learn rational analysis and not be swayed by market emotions. When facing market news, they should be able to calmly judge its authenticity and impact, avoiding being misled by false information. At the same time, they should also learn psychological analysis, insight into the psychological changes of market participants, thus formulating more effective trading strategies.
Balancing investment and speculation
In the financial market, both investment and speculation coexist. For ordinary investors, reasonable allocation between investment and speculation can be made according to their risk preferences and financial conditions. Generally speaking, the majority of funds can be allocated for long-term investments to obtain stable returns, while a smaller portion can be used for short-term speculation in pursuit of higher profits.
However, it should be noted that whether investing or speculating, there needs to be a clear awareness of risk. During the investment process, always pay attention to market dynamics and your own risk tolerance, and adjust investment strategies in a timely manner; during speculation, it is even more important to strictly control positions and stop-loss points to avoid significant losses due to momentary impulses.
Three principles of gold mining and trading secrets
During the process of trading coins, there are a few principles that need to be remembered:
Position control: Strictly control the position within a certain ratio (e.g., 50%) when building positions to avoid full-position operations. This can reduce risk and retain some funds for subsequent operations.
Batch selling: When the price rises to a certain level (e.g., 2-3 times), sell in batches to lock in profits. At the same time, leave some bottom positions to respond to market changes.
Cautious following: Stay calm during high market sentiment and do not blindly follow the trend to chase highs. Learn to think independently and judge market trends.
In addition, there are some trading secrets worth referencing:
1. Choose legitimate major platforms for trading to ensure fund safety, such as Binance, OKEx, and other major exchanges.
2. Maintain a wait-and-see attitude during market downturns and wait for the right moment to take action.
3. Long-term investment can choose high-quality coins ranked in the top 20 globally to diversify risks.
In short, becoming a true trader requires continuous learning and practice. Only with firm beliefs, calm minds, and rapid learning abilities can one stand undefeated in the financial market.
Can trading cryptocurrencies fulfill wealth dreams? Mastering these points is crucial!
The 80/20 rule
A true portrayal in the crypto circle: How to turn from leek to victor?
In this world, nothing can escape the 80/20 rule - '80 lose, 1 break even, 1 profit.' In the financial market, especially in the crypto circle, only 20% of people control 80% of the wealth, and the few who can profit from trading cryptocurrencies are always a minority, while the vast majority become leeks. If you are currently facing losses and filled with confusion and unwillingness, it might be worth reflecting: find the fundamental reasons for your losses and clarify several key issues; this is the first step to deciphering the rules of the crypto circle.
Before starting the article, let’s pose a few questions for everyone to think about.
First ask yourself:
Am I one of the 20% or one of the 80%?
What qualifications do I have to make money in this industry?
Who in this industry is making money?
Have I studied diligently, and can my knowledge surpass most investors?
Do I have the ability to think independently?
Is my investment strategy merely following the calls of friends, bloggers, and KOLs?
When facing the manipulation of the operators, can I remain calm in the midst of chaos?
The market is merely a trading channel; the market itself does not generate profits. For example, with Bitcoin, during the buy-sell process, Bitcoin itself does not generate profits.
So-called making money from trading coins refers to the price difference generated during the trading process. In simple terms, if you make money, someone must have bought high from you, leading to their loss.
Assuming there are ten participants in the crypto circle, each with 10 dollars. If a few people make money, one person earns 2 dollars from the other nine, this person will have 28 dollars, and the other nine will have 8 dollars, and the game can continue. If most people make money, nine people earn 2 dollars from one person, the nine will have 11 dollars, and the one not only loses all but also owes 8 dollars, and the game cannot continue.
If a few people make money, the market can sustain; if most people make money, the market will collapse.
It’s similar to a lottery; if most people can win, then the lottery company cannot continue to operate. Only when the majority fail and a few win can the lottery company sustain its business.
Thus, the crypto market will use every means to make most people lose money.
How to become a winner in the crypto circle: 4 major profit rules
So, how can one join the ranks of the few who make money? There are many reasons for losses in trading cryptocurrencies; the following six points summarize key strategies, and as long as you avoid going against them, you can stand out:
Coin holding method
: Applicable to both bull and bear markets. This is a strategy that seems simple yet is highly challenging, meaning that after buying one or several coins, one should hold them for at least half a year or a year. Although long-term returns can reach ten times, many novices frequently operate due to volatility, making it difficult to persist. Therefore, this is also the most challenging.
Bull market chasing the dip method
: Suitable only for bull markets. In this strategy, use no more than one-fifth of idle cash to purchase coins with a market value between 2-10 billion dollars. If the first altcoin rises over 50%, switch to the next low-performing coin. If trapped, patiently wait for the bull market to break free, but choose the coin types carefully.
Aggressive coin holding method
: Suitable for long-term quality coins. Use liquid funds to set a buying price 10% below the current price, while also setting a selling price 10% above the current price to capture profits. Continuously adjust dynamically to seize more opportunities based on market changes.
Diversify investments: Avoid putting all funds into a single coin. By diversifying investments across different coins and asset classes, you can reduce risk and increase profit opportunities, ensuring you don’t lose everything.
