In summary: lose less money, compound more, survive long-term!
Many people enter the cryptocurrency world hoping for ‘quick wealth’, but the reality is that 99% lose money, while 1% make money. If you do not want to be part of the harvested group, you must understand: making money in the cryptocurrency world is not about luck, but about understanding, discipline, and patience.
1. Three main ways to make money in the cryptocurrency world
1️⃣ Spot investment: long-term holding, competing in understanding and patience.
The most stable strategy, suitable for ordinary people, is to dollar-cost average BTC, ETH, and hold it for a long enough time.
Sell in a bull market, buy back in a bear market, follow the market cycle.
✅ Suitable crowd: Ordinary investors, those who do not have much time to study the market.
❌ Risk: Short-term volatility is intense, not holding may miss big trends.
2️⃣ Contract trading: high risk, high reward, tests technique and discipline.
Leverage magnifies profits, but also magnifies losses. 99% of people lose everything while playing contracts.
Only a very small number of people can make long-term profits in contracts, requiring strict risk control, stop-loss, and trading systems.
✅ Suitable crowd: Familiar with the market, have trading experience, can control emotions.
❌ Risk: High probability of loss, not suitable for beginners.
3️⃣ Speculating on altcoins: high volatility, high returns, high risks.
In a bull market, trading altcoins can double or even hundredfold in the short term, but most ultimately go to zero.
The key is to identify project quality, grasp market sentiment, and timely secure profits.
✅ Suitable crowd: Short-term speculators in a bull market, those who understand on-chain research and cash flow.
❌ Risk: Project running away, market crash, returns proportional to risk.
2. How to ‘effectively’ make money?
1️⃣ First learn to ‘lose less money’, then talk about ‘making money’.
The simplest way to make money in the cryptocurrency world is to survive long-term, while most people lose money because:
✅ Heavy investment in a single asset: all in on altcoins, and end up at zero.
✅ High leverage all-in: market slightly fluctuates, directly leading to liquidation.
✅ Chasing highs and selling lows: emotional trading, buying at the highest point, selling at the lowest point.
✅ Listening to tips: following big players, KOLs, ultimately becoming the bag holder.
Solution: Manage funds well, do not let a single loss exceed the acceptable range.
2️⃣ Suitable profit model for ordinary people: BTC dollar-cost averaging + value investing.
Buy BTC, ETH in a bear market, sell in batches during a bull market, follow the market cycle.
Research truly valuable assets, instead of trading worthless coins every day.
Reference data:
2018-2019 Bear Market, BTC at $3000, ETH at $80.
2021 Bull Market, BTC peaked at $69,000, ETH peaked at $4800.
2022-2023 Bear Market, BTC at $15,500.
In 2024, BTC will break through $70,000 again!
If you dollar-cost averaged BTC, ETH at the lows, just holding it has multiplied your wealth by 5-10 times!
3️⃣ If trading contracts, be sure to follow trading discipline.
Small leverage (3x-5x), avoid large leverage liquidation.
Set stop-loss, do not hold onto losing positions, control losses within 1-2% of the account.
Increase position when profitable, reduce position when losing, go with the trend.
Learn the trading system (technical analysis + money management + trading psychology).
Tony's trading quotes:
“Contracts are not a casino, don’t think of striking it rich in one trade; good risk control is the way.”
4️⃣ In a bull market, ‘arbitrage’; in a bear market, ‘survive’.
In a bull market, go with the trend, follow mainstream funds, find the right trending assets (BTC, ETH).
Surviving in a bear market is most important, do not bottom fish garbage projects, wait for real opportunities.
5️⃣ Recognize the market, maintain independent thinking.
Do not follow the crowd, do not listen to ‘big players’ in the cryptocurrency world shouting tips; when they shout, it is often to offload.
Focus on on-chain data, market sentiment, learn to judge trends yourself.
In the long run, the cryptocurrency world is a place for realizing understanding, competing on who can see further, hold longer, and make more.
Ultimate conclusion: What is the key to making money in the cryptocurrency world?
✅ Lose less money: first learn to avoid liquidation and pitfalls, then qualify to talk about profit.
✅ Seize the bull market: market cycles are obvious, must seize opportunities in a bull market, do not leave too early.
✅ Learn patience: the cryptocurrency world is quick money, but those who make money are actually very slow, only after enduring a complete cycle will there be rewards.
✅ Survive long-term: this market never lacks opportunities, what it lacks is those who can survive until opportunities arise.
“In a bull market, everyone makes money; the bear market is where winners are separated from losers.”
“The market is constantly harvesting those who are impatient; patience is the strongest weapon.”
What is your biggest lesson in the cryptocurrency world? Welcome to comment.
Help others avoid pitfalls.
Welcome if you don't know what to do.
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