After more than five years of ups and downs in the digital currency field, I want to tell you how to earn your first pot of gold. In the first five years, I was deeply mired in debt, with amounts reaching as high as six million. But a turning point occurred in the next five years, where through relentless effort and keen insight, I achieved a brilliant transformation from financial distress to wealth freedom. As a veteran participant in the cryptocurrency world, I have personally experienced countless market changes, with traps and challenges that tested my wisdom and courage.
On this journey, I have lost my way and tasted the bitterness of failure; I have also been euphoric because of occasional victories, only to fall into deep disappointment in an instant. My inner emotions are like surging waves, mixed with various feelings that are hard to express. But time flies, and all storms will eventually pass. Now, I can face the cryptocurrency world with a calm and composed mindset, continuing to move forward on this path full of unknowns and possibilities.
1. Many people think this way. I believe that if your capital is below 100,000, and you want to stabilize and not lose in the cryptocurrency world, or even make a small profit.
To make a profit, there's a simple method that can help you keep 'earning'. Don't worry about not being able to learn it; if I can seize opportunities, so can you.
I'm not a master; I'm just an ordinary person who may have picked up a small trick compared to others. As long as you grasp this method, you can earn an additional 3% to 10% profit in subsequent trades, accumulating small gains into significant ones. Below, I've compiled some insights from the past few years to share with you newbies.
1. Don’t be greedy; start with one or two coins.
In the cryptocurrency world, there are many virtual currencies, as numerous as the stars, with dozens or even hundreds of types. However, as small investors, our energy and capital are limited; we should not think about trading everything. It’s best to focus on 1 or 2 coins, and at most 3. If you have too many, you can’t manage them, and when the market gets frantic, all decisions will be based on feelings, leaving no time for proper judgment, which can easily lead to mistakes. It’s better to thoroughly understand one or two coins than to spread yourself too thin.
2. When the market rises wildly and falls sharply, don’t act rashly.
When the market surges, do you feel like 'this coin is going to double, and fortune is within reach'? There’s only one thought in your head: 'Quick! Invest more, buy, buy, buy!' Conversely, during a market crash, you think, 'It’s over; it’s going to drop to nothing; hurry up and sell!' At these times, your heart races, and you're flustered, making it easy to make foolish decisions. My advice is: when the price fluctuates wildly, just don’t act, calm down and reassess; don’t let emotions lead you.
3. Don't put all your money in; maintain a stable mindset.
Don't go all in on trading cryptocurrencies (using all your capital); it's best to keep half or a third of your funds on hand. This way, if the price drops, you can buy more, and if it rises, you can add to your position. If you invest too much, you’ll be happy when the price goes up, but panicked when it drops. When your mindset collapses, all decisions become distorted. Leave yourself some room and don't corner yourself.
4. Leave when you've made enough; don't be greedy, and accept losses.
When trading cryptocurrencies, set a target for yourself, such as selling after making a 20% profit, regardless of whether the price continues to rise. Many people aim to earn a little more and end up trapping themselves, as greed is human nature, and you must control yourself. The same goes for losses—set a bottom line, such as selling after a 10% loss; don't stubbornly hold on. Many trading platforms allow you to set automatic buy and sell orders; set the prices and let the computer handle it instead of relying on your shaky hands to make decisions.
5. Learn some technical skills; don’t rely solely on what others say.
Many people in the cryptocurrency world do not come from a financial background; they may be programmers or homebodies wanting to make some money without knowing much. Instead of listening to others' empty talk, spend a few days learning technical analysis. For example, understand the basics of K-lines and moving averages; having your own foundation is better than anything.
6. Take it slow; don’t go all in or cash out completely.
Whether buying or selling, don't go all in at once. For example, if you want to buy 10 bitcoins, do it in 5 transactions over an hour or spread it out over several days. This way, the risk is smaller, and you won't make impulsive decisions when the market is volatile. Steady and measured progress is the long-term strategy.
7. Believe in yourself; don’t let others confuse you.
There’s a lot of analysis online; today someone predicts a rise, tomorrow someone predicts a drop. After hearing so much, your mind becomes chaotic. The market is inherently uncertain; no one can predict the future. Others’ opinions may differ from yours; don’t panic—trust your own judgment. The worst thing in trading is to be driven by emotions; using your own mind to make decisions is the key to making money.
Sharing my cryptocurrency trading story.
I have been in the cryptocurrency world for ten years, witnessing three bull and bear markets, starting with 60,000 yuan in capital and stumbling through to finally achieving some small success. To be honest, I’ve fallen into many traps, especially in high-risk plays like 100x futures. At first, I thought it was a 'death sentence', but later I found it was actually my most profitable and highest win-rate method. Why? Because I accidentally developed my own trading style.
1. Fixed capital: The money I use for futures trading never changes; for example, one account has 300 USDT. I can lose a maximum of 300 USDT, but when the market is good, I can earn tens of thousands of USDT. The risk is manageable, and the potential profit is substantial.
2. Test the waters with small amounts: My first trade was very small, just a few dollars or tens of dollars. As stock trading master Livermore said, you need to earn at the start, which helps stabilize your mindset.
3. Add more only after making a profit: Only after making money and recognizing the trend do I use profits to add to my position. If I haven't earned, I don’t add; if I lose, I don’t make rash moves, protecting my capital.
4. Be flexible with stop-losses: Adjust your stop-loss line according to the market situation, never letting your capital sustain losses. This keeps my mindset stable and prevents me from being scared out of the market.
These points sound simple, but they have saved me many times. In fact, you can use this logic even if you're just trading low-leverage coins without futures.
2. K-Line Chart Interpretation
'Three White Soldiers' pattern.
[Pattern Diagram]
'Three White Soldiers' is a very common three-day candlestick pattern formed by three consecutive small bullish candles, signaling a bullish price trend. However, in real trading, we still need to analyze the stage price trend to determine whether the 'Three White Soldiers' pattern is indeed a bullish signal. Generally, only when it appears at a significant price low (which can be a low after a downward trend or a relative low in a consolidation phase) or at a breakout position after a consolidation can it be deemed a reliable bullish pattern, thus serving as a clear buy signal for short-term entries.
[Pattern Analysis]
'Three White Soldiers' refers to three consecutive small bullish candles that create new highs during an upward trend (when prices are bottoming out or consolidating).
If after a 'Three White Soldiers' pattern, the price rises with an increasing trading volume, it indicates that the major players are resolute about buying, and the likelihood of continued price increases is very high.
After a long period of decline, the short-selling momentum of the market bears has been released, and they are unable to short again, causing prices to oscillate at the market bottom. Meanwhile, the bulls believe the price has dropped enough and is in an oversold state, starting to attempt buying. Some investors, after comparing the strengths of bulls and bears, believe the market favors the bulls and begin to enter positions. The market is influenced by the combined forces of both sides, creating a three-day rally. The 'Three White Soldiers' indicates that the bullish forces are just beginning, and as strength continues to release, it will lead to a rising market.
[Response Strategies]
(1) Find the important support level below the 'Three White Soldiers' pattern, such as the lowest price of a bullish candle or an important moving average support level. If there is a significant support level below, consider setting your stop-loss below that support.
(2) Based on the stop-loss and target positions, combined with the overall risk-reward ratio and the probability of success, determine whether to establish a position.
(3) Under circumstances suitable for establishing positions, when the first bullish candle appears and rises based on critical support levels, aggressive investors can enter the market with a light position; the next day, if the initial 'Three White Soldiers' pattern appears, they can continue to hold. Those who did not enter the market the previous day can also enter to buy; on the third day, when the 'Three White Soldiers' pattern is formally established, it is also an opportunity to continue building positions.
It is important to note that depending on the different forms of the three candlesticks and their positions, 'Three White Soldiers' can be categorized into 'Ending Three White Soldiers', 'Advancing Three White Soldiers', and 'Contemplating Three White Soldiers'. During real-time trading, they must be treated distinctly.
Generally, the 'Three White Soldiers' at the end of a downtrend do not belong to reversal patterns, but under special circumstances, they can indicate significant downward trends. Particularly, if the 'Three White Soldiers' appears at the end of an upward trend and is immediately followed by a massive bearish candle, it can easily form patterns like 'Dark Cloud Cover' or 'Evening Star', turning it into a typical reversal bearish candlestick pattern. Therefore, when 'Three White Soldiers' appear, one should observe the changes carefully and not rush to chase highs.
3. As a full-time cryptocurrency trader, I always remember the 10 iron rules of trading, which I printed and posted on my computer desk and bedside to remind myself.
Every iron rule is a summary and sublimation after countless practices and is worth reading many times!
10 top mindsets to survive and thrive in the cryptocurrency world and make big money!
In the ever-changing world of cryptocurrencies, if you want to achieve results, you need to actively learn and enhance your thinking.
As Charlie Munger said: when opportunities arise, you must invest boldly.
When you can't sleep because of an investment, it's not necessarily because you've invested too much; it could be due to a lack of confidence in your chosen assets or that the leverage risk exceeds what you can bear.
In the past, when buying a house, my entire family emptied all savings, and even borrowed money to buy, yet I could still sleep peacefully.
Trading real estate and cryptocurrencies are essentially no different; as long as the leverage is high, you won't be able to sleep, especially now.
Here are 10 top mindsets to survive and thrive in the cryptocurrency world and make big money. I remind all traders to keep these in mind:
1. The standard for judging an expert is primarily based on how long they can stay in cash: True experts do not merely profit during market uptrends; more importantly, they know how to decisively choose to remain in cash during uncertain or risky market conditions. This patience and self-discipline are core elements on the path to success.
2. In a bear market, all purchases may lead to mistakes: During a bear market, the overall market trend is downward, and any purchase behavior is likely to encounter a more significant decline. Therefore, maintaining a cautious attitude and reducing trading or avoiding it altogether until the market clearly stabilizes or a bull market arrives is the wise choice.
3. In a bull market, selling too early may lead to mistakes: In a bull market, prices continue to rise, and selling too early may cause you to miss out on more substantial profits. Hold on and go with the trend; only consider selling when there is a clear change in market direction.
4. The essence of investing is to buy low and sell high: It sounds very simple, but it is fraught with difficulties in practice. The core point is to have enough patience to wait for the right entry and exit opportunities and not be swayed by short-term market fluctuations.
5. The market direction is determined by major funds: The primary direction of the market is driven by large-scale funds. Understanding the dynamics of major funds can help us follow the trend and avoid falling into the trap of counter-trend operations.
6. Both technical and fundamental analyses cannot compete with the overall trend: Whether it's technical analysis or fundamental analysis, they are insignificant in the face of the market's overall trend. Following the trend is the key to achieving long-term profits.
7. Bearish news at the top indicates a bottom; sell decisively: When the market is at a high, bearish news often signifies an impending reversal, making it an excellent signal for exiting.
8. Bearish news at the bottom often indicates a bottom; you should buy boldly: In the market bottom zone, bearish news usually reflects extreme market panic, which is the best time to buy.
9. It is enough to be rich once in a lifetime; be sure to safeguard the wealth you have gained: Do not be greedy. Understand when to take profits at the right time and firmly protect the money you have earned; this is the key to achieving long-term success.
10. Be sure to allocate Bitcoin; otherwise, you may not make money in a bull market: Bitcoin, as the leader of the cryptocurrency market, often has the most considerable price rise during a bull market. Properly allocating Bitcoin can help us achieve stable returns in a bull market.
These valuable pieces of advice are the crystallization of years of practical experience and wisdom, worthy of our careful consideration and strict adherence. I hope these suggestions can help everyone avoid detours in the market and steadily move toward success.
These are heartfelt words from my years of trading cryptocurrencies; each one is very useful. However, the hardest part is to achieve unity between knowledge and action. I hope everyone can remember these iron rules and bravely navigate the waves in the cryptocurrency world!
These insights come from my five years of cryptocurrency trading experience, which are profound realizations after weathering many storms. I hope they can illuminate your path forward. Produced by Xiao He, quality guaranteed!
Having been in the market for many years, I understand its opportunities and traps. If you’ve been struggling in your investments and feel dissatisfied with losses, leave a 999 in the comments. I am Xiao He, a person who aims to leave a name in the cryptocurrency world.
