Original by Crypto Fule, Mingyue Coin Pavilion.
I will never forget that night in 2019: watching my account drop from 500,000 to 30,000, my palms sweating, with one thought in my mind - 'Can this money come back?' From blindly following trends to stable profits, it took me two years to understand: to survive in the cryptocurrency world, you need to join the right circle and build your own trading system through continuous learning to ultimately achieve good wealth results.
1. A collective frenzy among retail investors is a signal to exit.
In May 2021, when the shout of 'Bitcoin breaks 100,000' echoed across social media, my childhood friend Li Ming bet his wedding house down payment and went all-in. This young man, who had previously suffered a 50% cut in his Dogecoin holdings due to Musk's tweets, ultimately couldn't escape the double whammy of the 519 crash and the LUNA collapse. Ironically, I was quietly cashing out alongside institutions at that time.
The market always rewards contrarians. In November 2022, Bitcoin fell below $15,000, and panic led most retail investors to believe Bitcoin would drop to $8,000. However, we analyzed the market through policies, technical indicators, and news to determine that the market had stopped falling, and we promptly notified our followers to accumulate positions gradually. These chips have now appreciated several times, reaffirming Wall Street's century-old creed: buy when no one cares, sell when everyone is clamoring.
2. Give up on 'getting rich overnight'; first learn 'how not to lose.'
Newbies often ask 'which coin can rise 100 times' but don't realize that many altcoins peak immediately upon launch, with project teams running away with $30 million in one day. TRUMP coin raised $20 billion in two days. Too many people enter thinking they'll make 100x or 1000x, only to lose their principal and exit at a loss. When you stop thinking about 'gambling to turn a tricycle into a motorcycle,' you can steadily outperform 90% of people. The most ironic truth in the cryptocurrency world is that those who want to make quick money often die the fastest. When you learn to go against the market, it will reward you unexpectedly.
3. Stay away from hotcoins, altcoins, aircoins, and shady exchanges.
I was once obsessed with technical analysis, only to find it was all a distraction. There was once an altcoin called 'FOMO Coin' whose candlestick chart looked better than Bitcoin's, but the code was copied, the team was fake, and it ran away a week after launch. Mainstream coins will drop and then rise again; shady exchanges will run away, while altcoins, hot coins, and air coins will go to zero without a trace.
Last year, a friend mysteriously told me: 'Hurry and buy XXX coin; there's insider news that it's going to pump!' I checked the project's official website and found that the team members' photos were all AI-generated. A month later, that coin went to zero, and my friend lost 500,000.
4. Contract leverage is a slow poison.
In 2021, my friend Old Li played contracts, turning 300,000 into 3 million in 5 days, and posted on social media that he would quit his job and travel the world. But on the morning of the 6th day, Bitcoin suddenly dropped, and he lost everything. Now he delivers food and still uses that zeroed-out candlestick chart as his phone wallpaper.
Old Wang thought he was a contract master, only using 3x leverage, adding margin whenever it dropped. He had added margin 18 times, each time saying, 'I'll stop if it drops another 5%.' In the end, his account went from 500,000 to 2 million, and when the LUNA crash happened, he lost everything.
This is the true nature of cryptocurrency contracts. You think you're making money from price fluctuations, but in reality, you're contributing to the exchange's fees. The exchange has a god's-eye view, seeing everyone's stop-loss levels, just as if playing cards with visible hands. Do you think setting a stop-loss makes you safe? The exchange can pull a plug and force you to liquidate.
While you sleep, Wall Street tycoons are watching the market; while you eat, Korean aunties are dumping; while you take a dump, a tweet from Musk can trigger a tsunami. The gains are numbers; the losses are real money.
When your contract account shows a profit of 1 million, you hesitate to cash out; when it shows a loss of 500,000, you fantasize about a turnaround. You only regret it after being liquidated.
Always remember: in the contract market, those who truly profit without risk are the exchanges that charge fees and those who lead you into contracts, earning from your trading volume.
5. A good mindset is the key to profitability.
Investing in cryptocurrency requires cultivating an 'anti-human nature mindset'; a 50% drop is just an 'everyday appetizer.'
In 2021, Bitcoin fell from $69,000 to $15,000 over a year.
In 2022, LUNA coin dropped from $119 to zero in just 3 days.
If you watch the market daily like stock trading, encountering the volatility of the cryptocurrency world may cause your heart to collapse before your account does. Only with a mindset of 'viewing natural phenomena' can you avoid being strangled by market emotions.
Investment should be like Warren Buffett: only invest in coins you understand. Do thorough research before buying; as long as there is value, even if it retraces 70%, there will eventually come a day when value returns.
When you can calmly eat hot pot while watching your account drop 50%, knowing that the broth was bought with profits from the last bull market, then you've truly entered the field.
6. All-in is a big taboo; enter with a strategy.
Last year, my neighbor Xiao Wang went all-in with his entire savings of 1 million on a project claiming to be an 'Ethereum killer,' only to have the project team run away with the money, and the token went to zero.
Someone went all-in on Luna coin (LUNA) and became a rights protection group leader in 3 days after going from millionaire to broke.
When fully invested, a 10% drop causes anxiety and insomnia, while after doubling, you hesitate to withdraw your principal. The worst I've seen: someone mortgaged their house to go all-in, and when it dropped 50%, they were forced to cut losses, only to see it surge 800% afterward.
Always keep 50% cash on hand for when Bitcoin drops to $15,000 to buy the dip.
The market will not rise directly to the peak; it will fluctuate and wash out repeatedly. Gradual accumulation is beneficial during black swan events when you have bullets to add to your position.
In the cryptocurrency world, entering with a strategy is like wearing a seatbelt in a car - it feels cumbersome at times, but it can save your life during an accident.
7. Quit greed; exit with a strategy.
A friend cashed out to buy a house when a coin he invested in surged 30 times, only to see the price rise another 10 times later. But he laughed and said, 'It's better than those who didn't cash out when it reached 30 times and ended up losing their down payment.' This is the ultimate wisdom of the cryptocurrency world - don't try to eat the whole fish banquet, just eat the fish belly, because that's the fattiest meat.
My trading strategy is: (provided you can understand the market and know which stage the cryptocurrency is currently in)
1. Double your principal: After breaking even, everything in the exchange is profit, and the mindset is completely different.
2. Withdraw half of your profits during a peak sprint: don't be greedy.
3. Clear out your position during high volatility and convert USDT to cash to put in your pocket: not clearing out could mean losing a zero overnight.
Prevent random operations due to unbearable loneliness, as they can lead to total loss. The USDT in the exchange is just a number; only when withdrawn to your wallet does it become real wealth. Cashing out does not equate to exiting; experts thrive in ongoing profitable cycles.
In the field of digital currency, those who know how to buy are disciples; those who know how to sell are masters. Remember: unrealized profits are just chips temporarily stored by the market maker. Be sure to learn how to convert gains into tangible wealth.
I am Fule, an investor who has been deeply involved in the cryptocurrency world for 6 years. Any questions about cryptocurrency, feel free to ask.