Nine iron rules for trading cryptocurrencies summarized by a senior trader, remember them well to benefit for a lifetime, shared only once.
About volatility
If you have 1 million, earn 40% in the first year, lose 20% in the second year, earn 40% in the third year, lose 20% in the fourth year, earn 40% in the fifth year, and lose 20% in the sixth year, your remaining assets will be 1.405 million, and the annualized return over six years is only 5.83%, even lower than the coupon rate of a 5-year treasury bond.
About 1% per day
If you have 1 million, and you can earn 1% daily and exit, then after 250 days, your assets can reach 12.032 million, and after 500 days, your assets will reach 145 million.
About 200% per year
If you have 1 million, and achieve a 200% return for 5 consecutive years, then after 5 years, your assets will reach 243 million. However, such high returns are very difficult to sustain.
About ten years 10 times
If you have 1 million and hope to reach 10 million in ten years, 100 million in twenty years, and 1 billion in thirty years, then you need to achieve an annualized return of 25.89%.
About averaging down
Assuming you buy a cryptocurrency for 10 yuan with 10,000 yuan, and it now drops to 5 yuan, if you buy another 10,000 yuan, then the cost of what you hold can be reduced to 6.67 yuan, rather than the 7.5 yuan you imagined.
About holding costs
If you have 1 million, invest in a certain cryptocurrency and make a 10% profit. When you decide to sell, you can leave behind chips worth 100,000 yuan, so your holding cost will be zero, and then you can hold it long-term without pressure. If you are extremely optimistic about this cryptocurrency and leave behind chips worth 200,000 yuan, you will find that your profit will rise from 10% to 100%. But don’t get complacent, because if this cryptocurrency falls by 50% later, you may still incur losses.
The methodology I mentioned today is universally applicable for making money, whether in the crypto world or the real world.
Many people teaching how to make money will tell you what you should do. Business people, for example, tell you to be an honest person and to be altruistic.
When high-ranking officials tell you to work hard and serve the people, that’s how you can achieve today’s status like them.
He will use himself as an example, saying that he succeeded because of this. If you simply believe it, you will definitely not make money.
They may not even realize it, they all made a causal inversion mistake.
They use their own results to talk about things; all these things that can be recognized by most people are just results, not causes.
For example, in a market where everyone operates with integrity and sells good things, be a good person.
If you want to get rich, you have to work hard to sell fake goods.
If everyone sells fake goods, then to make big money, you have to give up the huge profits from fake goods and only sell genuine products.
Doing the same things as most people will definitely not make you rich.
In business, this is called differentiation. When you pursue a girl, and she tells you to be sincere, if your competitors are like that, and you are like that, you won’t succeed, no matter how impressive the courses you have taken or who guides you. At this moment, you rely on bragging and fabricated value, which will greatly increase your chances of winning.
If all your competitors are bragging and being ostentatious, then you must be extremely sincere, different from them, and your chances of winning will greatly increase.
The implicit meaning of knowing yourself and your opponent is to do things differently from them.
When others in the crypto world are unwilling to take advantage of arbitrage, you seize the opportunity. You can get rich.
When others look down on the inscriptions, you work hard to hit. You can get rich.
If everyone rushes to invest in meme coins and plays contracts, and you do too, then you will definitely end up losing everything.
The root of getting rich by hoarding BTC lies in the fact that most people won’t hoard, while you hoard diligently. Those who hoard only do so for 4 years, but you hoard for more than 10 years. You will get rich.
$SUI $TRUMP $ETH
