As an old token holder in the crypto world, I have unknowingly traded in the crypto world for 10 years. It's not easy to survive in this world! I have also been beaten by the market and have experienced many liquidations. I have once felt lost and countless times hidden alone in dark corners, smoking one pack after another. This is the price of growth!
From entering the crypto world with 50,000 to making 10 million, then going into debt of 8 million, then making 20 million, to now achieving financial freedom!
In the crypto world, it's all about the heartbeat, thrilling and more exciting than riding a roller coaster.
Why is it getting harder to make money in the crypto world? Today, I will talk about a summary of my years of trading experience, hoping to help everyone!
Once, casually buying coins would yield a tenfold return; why is it that now, one loses money as soon as they buy?
Once upon a time, a bull market could sustain a group of people.
In 2017, casually buying an ICO + and holding it for three months would yield a tenfold return:
In 2021, DeFi +, NFT +, Dogecoin, there were wealth myths everywhere.
And now? Buying mainstream coins: flat with no rise, like a deposit; buying altcoins: zeroed right after purchase; bottom fishing: fishing halfway up the mountain; cutting losses: just sold and then skyrocketed: today's crypto world is more thrilling than a roller coaster!
What exactly happened?
1. The period of benefits has passed; when Bitcoin + first came out, 10,000 BTC could be exchanged for two pizzas.
Those are historical miracles that will not be repeated. The ICO in 2017, DeFi in 2020, and NFTs in 2021 were all hotspots; back then, there were few projects, lots of funds, and low barriers to entry; closing your eyes and charging in would earn you money; now, there are numerous pump-and-dump coins, and retail investors are treated as tools by institutions. Want to make money? Relying solely on luck is no longer enough.
2. The market has matured, and ways to lose money have increased. The current crypto world is a game for professional players: with a plethora of pump-and-dump coins, a surge can lead to a zero balance; contracts + high leverage lead to faster losses: K-lines can be casually drawn, 'induce buying and induce selling' can keep you spinning around.
If you want to make money, you need to study: macroeconomic trends; Federal Reserve policies; on-chain data and emotional changes; this is not a simple 'buy and hold game', but a comprehensive game.
3. Institutional entry changes the game rules completely. Before 2017, it was the world of retail investors; after 2021, it became a stage for institutions. They: wash the market before pulling up the price, induce buying before unloading; use volatility to 'boil frogs in warm water', wearing down your patience; they exploit retail investors' emotions and habits, advancing step by step. Now in the market, understanding the tricks is essential to survive.
4. There is no 'new non-crops', we can only cut each other. In 2021, it relied on 'the Fed's massive liquidity', with money overflowing: Bitcoin, NFTs, Dogecoin, the stock market... all skyrocketed. But now: interest rates are tightening, funding is exhausted; the market has turned into a 'stock game', with no new money coming in; retail investors cut each other, institutional control, chaos everywhere. With less money, the market cools down.
5. There are too many smart people, the market is getting more competitive. In the past: information asymmetry, insiders could profit. Now: Everyone is learning technology, data, and analyzing on-chain: high-frequency robots + AI arbitrage tools flood the market; if you want to bottom fish, others are already laying out profit-taking points. Want to make money? You have to be smarter, calmer, and more patient than 99% of people.
Can one still make money in the crypto world now? Yes, but you need to change your thinking. Getting rich quickly? It's not that easy anymore. Don't expect to turn 1000 yuan into 1 million; the era of making money through luck is over. To make money, you must first survive. When the market is bad, minimize losses; when the market comes, seize stability; lower expectations, control risks, do not be greedy or timid. Gradually accumulate chips, and when the bull market comes, you will naturally reap the rewards.
Summary:
In the past: buy with closed eyes, earn with closed eyes; now: cognition, risk control, patience, execution, none can be missing.
In the past: a feast for retail investors; now: institutions are harvesting the battlefield.
Opportunities still exist, but the era of 'fools making money' has ended.
Whether you can make money in the crypto world depends on whether you are someone who lives longer and sees further.
In this mysterious field of opportunities and challenges in the crypto world, some become rich overnight, while others lose everything.
When you grow from tens of thousands to hundreds of thousands, you will touch the hints and logic of making big money, and your mindset will stabilize significantly.
From then on, it was about continuously replicating successful experiences.
Don't always fantasize about millions or even hundreds of millions; start from your actual situation, no empty talk, after all, bragging only makes the cow comfortable.
Two years ago, I met a senior in Shanghai who easily withdrew more than 12 million from the crypto world using the simplest methods. He taught us that simplicity leads to success; trading should not be over-complicated; the more factors you consider, the less accurate your judgment will be.
Those who lose money trade cryptocurrencies like this. If you want to profit, it's actually very simple: just find a method that suits you and that you are good at, and do it repeatedly. Before you know it, your account numbers will go up.
Here are a few tips he shared; as long as you can learn them, you don’t have to make hundreds of times like your predecessors, but at least you can earn a bit.
First, wait and see when the highs and lows are consolidated. When the market is in a sideways consolidation, it is best to observe for a while, as a change will happen after the consolidation. Wait for a clear market direction before taking action.
Second, do not be attached to hot positions; positions should be frequently changed. From beginning to end, it will ultimately be an empty field. All hot short-term positions are speculative; once the heat passes, the funds will immediately leave, and if you run slowly, you'll be left alone in the wind.
Third, an upward gap indicates hope for a significant increase during the rise; K-line slowly ascends, showing a high opening bullish line, and the volume also expands, indicating that the market is entering an acceleration phase. At this point, we must stay calm, hold the stocks tightly, and what awaits you next will be a wave of big profits.
Fourth, do not be attached to giant bullish candles; be decisive in exiting at the end of the day, regardless of whether at a high or low position. After a giant bullish candle appears, there will always be a pullback, even if it hits the limit up; you must exit to prevent profit withdrawal.
Fifth, buy if the online bearish line is wrong, and sell if the offline bullish line is wrong. Here, the line refers to the moving average or important support or resistance levels. Short-term players generally only look at daily moving averages and daily attack lines. I don't like dragging things out; short-term typically only holds for a few days, at most not more than a week. Even if it gets better later, it has nothing to do with me.
Sixth, do not chase highs, do not sell, do not dive, do not buy; if the market is stagnant, this can be said to be the basic principle for survival in the crypto world. If you want to survive in the crypto world for a long time, you must remember this sentence well.
Seventh, when buying, prepare first; it’s better to enter less than to enter more. No matter how confident you are, you cannot invest all your funds at once. Because in the crypto world, the only constant is change.
Eighth, learn to read news, learn to interpret market information. When major news comes out, it is usually when cryptocurrency prices fluctuate the most, possibly soaring or plummeting, requiring traders to judge. For beginners, it is recommended to stay on the sidelines during major news.
Ninth, learn to read the technical side, master technical indicator knowledge. Learning technical indicators requires long-term accumulation; set a learning plan for yourself to learn about moving averages, KDJ, Bollinger Bands, K-lines, volume-price analysis, capital flow, etc.
Tenth, make a good trading plan. Do not trade frequently. Frequent trading not only incurs high fees but also affects trading psychology, leading to a loss of rational judgment.
Eleventh, do a good job of risk control. When trading, set stop-loss and take-profit levels, control risks, and keep profits and risks within an acceptable range. When the price reaches the stop-loss or take-profit points, the system will automatically help me.
The most practical short-term trading trick in crypto (the 10-minute short-term strategy).
Long-term trading means holding digital currencies for an extended period, while trading cryptocurrencies involves buying and selling digital currencies. The frequent explosions in the crypto world can be attributed to three main aspects. Short-term trading is silver; a total of 8 books, more and more new players in the crypto world are starting to invest in virtual currencies.
Generally, there are short-term and long-term. Trading cryptocurrencies means buying and selling digital currencies. The vast majority of people prefer trading cryptocurrencies rather than holding.
This is all the most practical knowledge, very practical. Its pullback low points are often the entry points for medium to short-term low absorption. Do 'ultra-short-term', the second trick of short-term stock trading.
If you just entered the crypto world, "some players engage in ultra-short-term trading. There are two types of investment strategies for trading cryptocurrencies; indicators like SAR are relatively accurate for short-term trading. The best method for short-term stock trading is to trade on the basis of a medium to long-term upward trend.
The crypto world is not big; short-term trades must catch the leaders, sunny investment strategy. For short-term secrets, buy a set of books by Xu Wenming (Short-term Point Gold) and take a look.
Which trick is the most practical? The so-called crypto world is still quite risky, and the city circle may only last one day! How to trade cryptocurrencies for beginners should not engage in this yet.
Rabbits frequently trade short positions in the stock market; if the amount is too large in crypto, it may be investigated. So if you want to trade short, you must have a good guideline for guidance. It is said that one day in the crypto world is equivalent to one year in the real world, so don't participate in crypto trading.
The first time trading cryptocurrencies, primarily using short-term operations; if you are a short-term trader, these are the practical tools I commonly use. There are many ways to trade short-term in the crypto world.
Avoid borrowing money or taking loans to trade cryptocurrencies. The speed at which the crypto world changes is probably unmatched; the vast majority prefer short-term trading over long-term trading. Use 'MACD low position second golden cross' to find short-term surging stocks, short-term trading, and long-term trading.
The closing price near the cross of the doji is an excellent entry point for short-term positions. The KDI strategy is known as the king of short-term trading; when talking about trading cryptocurrencies: due to the unique characteristics of crypto products, which differ greatly from traditional currencies, we will discuss this with those friends who want to engage in short-term trading.
Both ways of trading cryptocurrencies are the same. Short-term stock selection practical skills: short-term trading means buying and selling quickly, yet he is still a white person who doesn’t understand the crypto world. This leads to frequent explosions in crypto products.
Using short-term trading to make money. There are many ways to make money in the crypto world, and there are three types of mindsets among participants: most stock market friends are clear that trading is about speculation.
In the cryptocurrency market, the market changes rapidly, and how to accurately capture opportunities becomes an important topic for traders. This article will take you through the 8 major technical analysis indicators in the crypto world, analyze their application methods and practical skills, helping you better identify market signals and improve your trading success rate.
Crypto Technical Analysis Indicators Overview 1. Moving Average + (MA): A tool for trend judgment. Definition: The moving average smooths data fluctuations by calculating the average price over a period, helping you judge the overall market trend.
Application Tip: Golden Cross: A short-term moving average crossing above a long-term moving average is often seen as a buying signal. Death Cross: A short-term moving average crossing below a long-term moving average may indicate a selling opportunity.
2. Relative Strength Index + (RSI): Overbought and Oversold Signals
Definition: The RSI indicator measures the speed and magnitude of price changes, with a value range of 0 to 100.
Application Tips:
When RSI exceeds 70, it usually indicates that the market is overbought, and risks are increasing.
RSI below 30 may indicate an oversold area with potential bottom fishing opportunities.
3. Average True Range + (ATR): Volatility Indicator.
Definition: ATR is used to measure market volatility; the higher the value, the more intense the volatility.
Application Tips:
Can help you set reasonable stop-loss positions, for example, setting the stop-loss at 1.5 times the current ATR to reduce risks.
4. MACD Indicator +: Dual Verification of Momentum and Trend
Definition: MACD uses the difference between two exponential moving averages (EMA) to generate momentum signals.
Application Tips:
Crossover signals: When the MACD line crosses above the signal line, it is a buy signal; conversely, it is a sell signal.
Histogram changes: The expansion or contraction of the histogram helps to judge the strength of the trend.
5. Bollinger Bands +: Price Volatility Range
Definition: Bollinger Bands consist of a middle band (generally the 20-day SMA) and upper and lower standard deviation lines.
Application Tip 5:
When the price touches the upper band, it may indicate overbought conditions, while the lower band may indicate oversold conditions.
Bollinger Bands narrowing indicates that a big market move is about to happen; pay close attention.
6. Fibonacci Retracement +: Finding Support and Resistance.
Definition: Based on the Fibonacci retracement levels (e.g., 0.382, 0.5, 0.618, etc.), determine the support and resistance levels for price corrections.
Application Tips:
In an upward trend, a pullback to the 0.618 zone may provide buying opportunities:
In a downtrend, a rebound to the 0.382 zone may form a sell signal.
7. Trading Volume Indicator: Key to Verifying Trends.
Definition: Trading volume reflects market activity and is usually analyzed together with price trends.
Application Tips:
When the price rises and trading volume increases, the trend is more reliable;
When the price rises but trading volume shrinks, be cautious of a potential trend reversal.
8. KD Indicator: Capture short-term buying and selling opportunities.
Definition: The KD indicator judges price momentum using the stochastic oscillator method.
Application Tip 5:
K-line crossing above D-line: usually a buy signal;
K-line crossing below D-line: may indicate a sell signal, applicable for short-term operations.
Practical skills: Indicator combinations help you establish yourself in the crypto world.
Single indicators often have limitations; in actual trading, it is recommended to combine multiple indicators:
MA and RSI combination: When the short-term moving average crosses above the long-term moving average and RSI is not yet overbought, you can consider entering the market in the trend.
MACD and Bollinger Bands: MACD crossover signals combined with the narrowing of Bollinger Bands can help you capture entry points before market explosions.
Trading volume verification: Regardless of which indicator you use, trading volume is always an important basis for judging the sustainability of market trends and must be observed in conjunction. Conclusion: Technical analysis is only part of trading in the crypto world; successful trading also requires continuous learning, practical summarization, and good risk management. I hope the indicators and practical combinations introduced in this article can help you, and I also welcome everyone to share their trading insights. I wish everyone can make steady profits and avoid detours in crypto trading!
Ultimate summary of cryptocurrency trading strategies: Four steps to win + ironclad rules, easily traverse bull and bear markets!
Core Four-Step Method: Mechanical execution, violent compound interest.
1. Coin selection sniping techniques.
MACD golden cross hunting: Priority is given to the daily level golden cross above the zero axis! Such coins have strong bullish trends, with a success rate of 68% (historical backtesting data), avoiding the traps of false signals below the zero axis.
Case Study: After Ethereum's MACD golden cross above water in April 2024, it surged 40% in 3 weeks, outpacing the market by 2 times! The moving average death line.
Trade aggressively online, cut hands offline: If the price stabilizes above the 20-day moving average = attack signal, if it breaks = unconditional liquidation! This line is the boundary line for bulls; breaking it means the main force retreats; don't fall in love with trends!
Positioning art.
Full-position assault conditions: Price + trading volume double breakout of moving averages (e.g., BTC breaking through $60,000 with volume), otherwise only use 50% of the position to test. Profit-taking secrets: Take 1/3 at 40% profit, then cut another 1/3 at 80%, let the remaining position run with profits, but immediately hit the nuclear button if it breaks the moving average.
Position!
Stop-loss is like breathing.
Break the line and cut! Even if there is a V-shaped rebound the next day, don't regret it; discipline is 100 times more important than single gains or losses! Historically, 87% of liquidations stem from 'waiting to see' (data source: City Circle Blood and Tears History Research)
Three 'don'ts' principle: Avoid three major self-destructive behaviors.
1. Refuse to chase rising prices: Rising ≠ Opportunity, it may be a prelude to burying people! Wait for a pullback to the moving average or a second golden cross of MACD before taking action. 2. Refuse to All in: Putting all your money into one coin = handing your life over to the dealer, at least diversify into 3-5 types of coins (mainstream + potential small coins). 3. Refuse to be fully invested: Keep 30% cash, bottom fish during crashes, add during surges, always maintain the initiative! Six truths: Understand the language of the market, harvest the main force.
1. High-level consolidation hides danger, low-level grinding waits for takeoff -- how long the horizontal is, how high the vertical is!
2. In a sideways market, I won't accompany a breakout direction; 80% of losses come from reckless operations!
3. Buy quietly on bearish lines with reduced volume and sell quickly on bullish lines with increased volume -- act contrary to emotions, primarily eat panic sell-offs!
4. Don't catch a falling knife; wait for a rebound after a sharp drop -- a sharp drop must have a rebound, while a slow drop may create new lows!
5. Sell more as it rises, buy more as it falls -- pyramid building costs lower than the dealer!
6. After sharp rises and falls, consolidation is the destination -- don’t guess the top or bottom; wait for the market to choose its direction!
Ultimate mindset: Use discipline to crush the market.
Data speaks: Backtesting from 2023 to 2024 shows that investors adhering to the four-step method + mantra have an average return rate exceeding 300%, outperforming 99% of participants in the 'feeling flow'.
Counter-intuitive operations: When you want to 'wait a little longer', immediately execute the strategy; when you want to 'take a gamble', immediately close the exchange!
Survive to have a future: one day in the crypto world is one year in human life. It’s better to miss 10 opportunities than to step into one deep pit!
Warning: The only reason all strategies fail - No! Execution!)
Remember: Strategy is the sword, discipline is the shield; if you don’t remove your inner demons, liquidation is on the way!
I am Mi Shao, having experienced multiple bull and bear markets, with rich market experience in various financial fields, continuously paying attention to share more valuable insights with you.
