I lost money for two years before trading cryptocurrencies, but then started making profits in the following three years! Making money from trading is actually that simple; it only takes three steps! After many struggles, I summarized 8 iron rules. The content is brief but highly valuable. If you think it makes no sense after reading, feel free to say whatever you want!
Thousands of once-happy families end up broken because of the pursuit of an elusive dream of striking it rich in the crypto world. Can you get rich overnight by investing in cryptocurrencies? Essentially, the question posed is about a possibility. Of course, there's a possibility; the key is how big? In the stock market, 7 lose, 2 break even, and 1 profits. The market is even harsher, with over 90% coming to lose. Yet, due to greed and luck, people always mistakenly believe they are among the 10%.
5 Common Ways Traders Get Cut in the Market and the 'Five Major Pitfalls' for Traders! If you fall into two of them, you'll be instantly harvested! If you want to survive in the market without being cut and want to share in the profits long-term, take a few minutes to seriously read this article; it might save you and your family! How do people who trade cryptocurrencies get cut? There are hundreds of ways to get cut, and here are a few common ones. I hope you don't fall into these traps.
1 Dealer Explosion: The dealer runs away. Luna dropped from $100 to $0.00001 in just a few days, and FIL dropped from over $200 to $5. Many other coins have similar stories. Many projects inflate their value to a high point within a certain time frame, and when the dealers think it's enough, they keep selling off to cash out. Most players who follow suit end up as the harvested ones, and almost all coins launched operate this way. This is also the goal of the project parties—to make money, not to realize whatever vision they claim. That's just talk for the naive investors and those who pick up the pieces.
2 Exchange Runs Away: It's quite normal for many small exchanges to go bust. They can cut you down to nothing, including the top five exchanges in the crypto world that frequently change rankings. Exchanges ranked lower than fifth are unreliable; they can go bankrupt or run away at any time. Last year, for instance, the top three exchanges in the U.S., FTX, went bankrupt and liquidated in just a few days. If a small exchange goes bust, investors can only lament their misfortune, feeling like they have nowhere to turn.
3 Guarding Against Theft: Clearly, your coins have been hacked by exchanges or so-called wallets, but they insist that hackers stole them. Isn't that frustrating? Many small exchanges and wallets operate like this directly. New traders are easily scammed by some obscure exchanges and wallets.
4 Playing Contracts: This is a consensus that people lose money. A big bullish candle attracts thousands of armies, while a big bearish candle leaves retail investors in tears. Those who play contracts usually want to get rich quickly and use high leverage, betting with the mindset of rapid wealth accumulation. But even if you win 9 times out of 10, losing just once means you're done. This is the so-called 10 bets, 1 loss, and you're finished. Moreover, many small exchanges have backends controlled by the platform, meaning they can make prices rise or fall at will, making it easy for traders to get cut. Some big exchanges occasionally engage in manual operations to bust a batch of big players, so it's best to avoid high-leverage contracts.
5 Playing with Shitcoins: When you're in a group and hear some so-called team leaders promote a coin that will supposedly hit exchanges at a certain time and can surge by dozens or hundreds of times in the short term, and many people in the group claim they've bought a lot, showing you screenshots and such, you get brainwashed. Then you spend money to buy some, and it actually gets listed on a small exchange or a trading app created by the platform itself. Initially, it might spike quickly to attract more naive investors or encourage you to buy more. But when you buy in more, a sudden drop occurs, trapping you inside until you have to cut your losses while the coin takes off. What this means is that the operators are watching your positions. Don't wonder how they know; they can see how many chips you've sold and when to buy back the low-priced chips. This is still a good project party; they want to harvest more people and operate a bit longer. Some dealers only sell and never buy back; once listed, the price drops. The more you buy, the more it falls, leaving you with no chance to recover your investment.
I've used 90% of the methods and techniques in the market, and I've stumbled into all the pitfalls. However, the most practical is still looking at the RSI indicator. The RSI indicator is one of the essential skills for short-term trading and swing trading. It's also the simplest and most practical 'dumb' method. The simpler the method, the more profitable it often is, applicable in both contracts and spot trading.
