Give some experience to cryptocurrency newbies on how to transform from a small retail investor to a giant whale

I am 30 years old this year. In 2017, I entered the cryptocurrency market with a principal of 5 yuan. Since then, I embarked on my journey in the crypto world!

I started as a small retail investor with 5 yuan and worked hard, eventually turning into a big player with 50 yuan!

I would like to share my insights from my journey with everyone. The most important point in trading is capital management; don’t invest all your money at once. I divide my capital into five parts, using only one part for each trade. This way, even if I incur losses, I won’t be overwhelmed. Moreover, I set a rule for myself: if I lose 10%, I withdraw immediately, regardless of the market situation. If I incur losses five times in a row at 10%, I will only have lost 50%. But if I make profits, the returns can be substantial. Even in case of getting stuck, I can maintain my composure.

Following the market trend is always the most reliable strategy. When the market is falling, don’t think about bottom fishing; that’s simply unrealistic. During an uptrend, a pullback is the golden opportunity. Buying low is much safer than desperately trying to catch the bottom.

When it comes to selecting coins, one must have a keen eye. Those coins that surge dramatically, whether they are major coins or altcoins, should be avoided as much as possible. Coins that rise too quickly are likely to experience significant pullbacks afterwards, making them easy to get stuck in.

In terms of technical indicators, I use MACD most frequently. When the DIF line and DEA line cross below the zero line and break through it, that’s a buy signal. Conversely, if they cross above the zero line and start to decline, it's time to reduce your position.

When it comes to averaging down, don’t try it lightly! If you are losing, don’t average down; the more you average down, the more you lose, and in the end, you might end up with nothing. Remember, cut losses when losing, and only add to your position when in profit.

Trading volume is also very critical. When the price breaks through a low level with increased trading volume, it usually represents a great opportunity.

The most crucial point is to go with the trend and seize the momentum! Combine the daily line, 30-day line, 84-day line, and 120-day line; when any of these lines starts to turn upwards, you’ll know how to act.

Trading cryptocurrencies carries risks but also significant opportunities.

Learn capital management, trend analysis, and coin selection to transform from a small retail investor to a middle-class success like me.