There is a dumbest way to trade cryptocurrencies that almost guarantees 100% profit. I made over 20 million using this method.
1. First manage your money, then talk about making money (core principle)
- Position Management +:
Stop thinking about going all in; divide your money into three parts:
- 50%: Long-term national currencies (mainstream coins like BTC/ETH; buy when they drop and avoid missing out when they rise)
- 30%: Short-term trading (only trade trends you understand, such as going long in the early stages of a bull market and going short in the early stages of a bear market)
- 20%: Cash (for buying the dip in case of a crash or for safety in extreme market conditions)
*(Adjust the ratios based on risk tolerance, but make sure to diversify)*
- Stop Loss + must be strict:
If you lose 10%, cut your losses without hesitation; don’t fantasize about “waiting to break even.”
*(In 2021, Bitcoin dropped from 69,000 to 30,000; those who didn't cut losses are still trapped)*
2. Only make money within your understanding (implementing strategies)
- Beginners:
Only trade spot; don’t touch contracts or leverage.
Use dollar-cost averaging to lower your cost (for example, buy 100 UBTC every Wednesday), sell in bull markets, accumulate in bear markets; simple and effective.
- Experienced Traders:
- Trend Trading +: Look at weekly charts; go long when MA30 is up, rest when it's down.
- Arbitrage Opportunities:
· Exchange + price difference arbitrage (for example, if BTC is cheaper on Binance than OKEX, buy low and sell high immediately)
· Take advantage of low on-chain GAS fees for airdrops (for example, interacting before ARB token release costs 5U, while the airdrop is worth 2000U)
- Reject low-quality coins:
If you see coins that promise “double in a day” or are hyped by Musk, blacklist them directly.
*(How many people were left holding PEPE at the top in 2023?)*
3. Information is money (avoid being scammed)
- Look at data, not group chats:
- On-chain data +: Check trading volume on Coinmarketcap (don’t touch coins with daily trading volume below 1 million U)
- Whale movements: Pay attention to large wallets on-chain +
- Sentiment Indicators: Reduce holdings when extremely greedy, buy in batches during extreme fear (refer to the Fear & Greed Index)
- Message classification: #币安Alpha上新
- Primary Information: Project official websites, coin listing announcements on Coinbase, Federal Reserve interest rate decisions #加密市场反弹
- Secondary Information: Analysis from Twitter influencers, KOL live streams (refer to but don’t fully trust) $BTC $ETH $XRP
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