I am 37 years old this year. I started trading cryptocurrencies at 28, and it has been more than ten years. From liquidation to achieving financial freedom, I summarized my insights into a decade! From January 23, 2021, to May 2025, I turned about 300,000 into over 30 million with a win rate of 518134.86%. Now, my lifestyle includes staying in high-end hotels costing around 2000 yuan, with luggage and hats possibly bearing cryptocurrency symbols. It’s quite different compared to the older generation who focused on real businesses or e-commerce.
Those born in the 80s have it much easier. I have hardly experienced any disputes in business, and having fewer worries has allowed me to patiently summarize my insights.
Essential rules for cryptocurrency investment: 10 classic rules to help you navigate the bull and bear cycles.
In the turbulent cryptocurrency market, does traditional investment wisdom still hold? Despite the disruptive nature of the blockchain world, investment philosophies that have stood the test of time continue to be a beacon in the fog. The following 24 classic sayings, reinterpreted in the context of the cryptocurrency world, will help you establish a more rational investment perspective.
One, recognize the essence of the market: volatility is the eternal main melody.
1. The power of trends far exceeds imagination.
Investment master Baruch's saying 'New highs breed new highs, new lows breed new lows' reveals an iron law in the cryptocurrency world: once a trend of rise or fall forms, it is difficult to reverse. Do not attempt to predict tops and bottoms using traditional financial logic—when BTC drops from $60,000 to $20,000, the 'floor price' in the eyes of bottom fishers may only be 'steps below the ceiling.'
2. Resistance and support levels of highs and lows.
"Those who claim to be able to pick the bottom and escape the top are definitely lying." This saying is particularly harsh yet true in the cryptocurrency world. From the sudden collapse of LUNA to the explosive rise of PEPE, the crypto market continuously proves with extreme market movements: the only constant is change itself.
Two, the first rule of survival: risk control is more important than profit.
3. Mistakes are the norm; stop losses are essential.
"Don’t expect to be right every time; the quicker you stop losses after mistakes, the better." — In the contract market, 10 correct profitable trades might be wiped out by one incorrect position. Establishing a 5% stop-loss rule is more crucial for survival than studying 100 technical indicators.
4. Always retain capital for a comeback.
Soros' principle of 'not going all in' is a survival mantra in the cryptocurrency world. Even if you are certain a bull market is coming, you should reserve 30% of your capital to cope with black swan events — the 2022 FTX collapse left many fully invested traders impoverished overnight, while those who kept their powder dry waited for the rebound window in 2023.
Three, key trading strategies: finding certainty amidst uncertainty.
5. Focus on your circle of competence; delve deep rather than spread wide.
"You don't have to understand everything, but you must specialize in one area." — Instead of chasing thousands of altcoins, it's better to delve deeply into the halving cycle of Bitcoin or the ecological development trajectory of Ethereum. Long-term holders of Binance Coin (BNB) often have more stable returns than frequent traders.
6. Opportunity codes within the volume-price relationship.
Gann's theory of 'volume precedes price' is also applicable in the cryptocurrency world: when the trading volume of a certain coin increases threefold within 24 hours, it is often accompanied by a short-term trend reversal window; and a breakout after a period of continuous low volume often results in more than 50% price fluctuation.
Four, the guide to human psychology in trading: contrarian thinking is the key to excess returns.
7. Stay clear-headed in the midst of collective madness.
Rogers' saying 'When others are greedy, I am fearful' needs to be upgraded to 'When others are greedy, I short' in the cryptocurrency world — at the peak of the bull market in 2021, when retail investors reached their peak enthusiasm for chasing Meme coins, savvy funds had already locked in profits through futures shorts.
8. Beware of the deadly temptation of information silos.
"When media opinions are one-sided, stand on the opposite side." — When a well-known KOL in 2023 collectively praised a DeFi project, those betting against it managed to seize a tenfold liquidation market. In the rumor factory of the cryptocurrency world, the truth often lies in the opposite direction of public sentiment.
Five, the principle of long-termism: the underlying logic of crossing cycles.
9. The time value of core assets.
Fisher's saying 'Hold on to growth stocks' corresponds to the cryptocurrency world as 'Hoard core coins' — Bitcoin's rise from $0.0008 in 2009 to $26,000 in 2023 verifies that 'time is a friend of quality assets.' Even after experiencing the 2022 bear market, Bitcoin's decline was much smaller than that of 95% of altcoins.
10. Research is the primary prerequisite for investment.
Peter Lynch's saying 'Investing without research is like playing cards with your eyes closed' is particularly important in a cryptocurrency world where coins with zero value account for more than 80%. The disappearance of over a thousand tokens in 2023 proves that speculation without fundamental support will eventually burst like a bubble.
Ultimate reminder for cryptocurrency investors.
The charm of cryptocurrency lies in its disruption of tradition, but its essence remains a battlefield of human psychology. When you are intoxicated by the myth of hundredfold coins, please reread Buffett's principle of 'fear and greed'; when you feel anxious due to short-term fluctuations, remember the warning from Chuan Yin Cang: 'Rumors are the scythe of the manipulators; patience is the hoe of investors.'
In this 24/7 market, true experts do not pursue short-term windfalls; they use a systematic risk control framework and independent judgment to build their own Noah's Ark amidst the turbulent waves. Remember: the cryptocurrency world is never short of opportunities; what it lacks are those who can survive until opportunities arise.
In the cryptocurrency world, three thousand dollars is about 400 USDT! Recommended optimal strategy: use 100 USDT for each contract, bet on hot coins, with a take profit and stop loss ratio of 100 to 200, 200 to 400, and 400 to 800. Remember no more than three times! Because you need a bit of luck in the crypto world, betting like this can easily result in 9 wins and one loss! If you pass three rounds with 100, then your capital will reach 1100 USDT! At this point, you need to solidify. 'Three-stage rocket' strategy:
Foundation buying: 50% of funds to buy Bitcoin and Ethereum to seize the mainstream rising dividends.
Diversifying into 30% of funds to buy 5 DeFi project tokens with practical application scenarios.
Contract trading: use 20% of funds to open 5x leverage and go long during Bitcoin pullbacks.
The most thrilling trade was during contract operations. When Bitcoin dropped from 60,000 to 55,000, the market was in despair, and the RSI indicator showed oversold conditions. I decisively opened a long position and set a 10% stop loss. Three days later, Bitcoin rebounded to 65,000, earning 400,000.
The most stable way to trade contracts: perpetual contract profit strategies.
Practical: capital management from 10,000 to 1,000,000.
Position allocation iron rules • Total capital ≤ 10,000: single coin position not exceeding 30% • 10,000 to 100,000: diversify into 3-5 tracks (AI + DeFi + chain games + RWA + public chains) • > 100,000: must allocate 20% stablecoins for hedging.
Contract rollover formula: ① Initial position test: 5% position to test direction (stop loss 3%) ② Confirm and add: increase position to 10% after a 10% profit ③ Trend position: add to 15% upon breaking key levels ④ Take profit strategy: laddered take profit (30%/50%/70%).
Pitfall Guide • Absolutely do not do: New coins on the first day / Midnight market trends / Spike periods • Must set: Moving stop loss (adjust once per hour) • Deadly taboo: Blindly increase leverage after making a profit.
Third strategy: Daily trading checklist 08:00 Check overnight liquidation data (assess sentiment) 09:30 Filter the top 10 breakout coins (DEX + CEX) 14:00 Check news on holding coins (focus on regulatory dynamics) 20:00 Review delivery orders (record 3 improvement points) 23:00 Set overnight orders (with stop losses and take profits).
Teach you K-line analysis to navigate the cryptocurrency world: support levels, resistance levels, trend charts.
Most people new to digital currency find that trading cryptocurrencies is quite similar to stock trading; both involve exchanges, candlestick charts, and fluctuating prices. Therefore, some stock traders might not understand cryptocurrencies, but just by looking at a candlestick chart, they can grasp the general idea.
When we conduct a trade, we cannot just look at the profits; we also need to consider the risks associated with the trade and assess whether we can bear that risk.
First, let me explain candlesticks. The English name for candlestick charts is 'Candlestick Charts,' also known as Japanese candlesticks, Yin-Yang lines, stick charts, red-black lines, etc. It is commonly referred to as 'K-line.' It is composed of the opening price, highest price, lowest price, and closing price for each analysis period. It was later introduced into the stock and futures markets. Due to its intuitive and easy-to-understand expression, K-line chart analysis has become an important tool and means of technical analysis. It is now also used in the Bitcoin trading market.
K-line charts originated in Japan, where merchants used them to record price fluctuations in the rice market. Due to their intricate and unique drawing style, they were later introduced to stock and futures markets. Currently, this chart analysis is particularly popular in China and the entire Southeast Asia region. The shapes of the charts are reminiscent of candles, and because these candles come in black and white, they are also known as Yin-Yang line charts. Through K-line charts, we can fully record the performance of the market on a daily or periodic basis.
As shown in the diagram. In the candlestick chart, the opening and closing prices form a rectangle, and the two lines extending up and down from the rectangle are called shadow lines. If you select 15 minutes, it represents the trading within those 15 minutes, and if you select one day, it represents the trading within that day. As shown below, the upper and lower shadow lines represent the highest and lowest prices, respectively. A candlestick without shadow lines is called a 'full-body candlestick'.
The candlestick chart objectively tells us about the process of market price changes, playing an important role in analyzing and grasping the market direction. It helps us see the trends and invest correctly.
Look at the bullish and bearish candlesticks.
Bullish and bearish candlesticks represent trend direction; bullish candlesticks indicate continued upward movement, while bearish candlesticks indicate continued downward movement. Taking the bullish candlestick as an example, after a period of struggle between bulls and bears, a closing price above the opening price suggests that the bulls have the upper hand. According to Newtonian mechanics, in the absence of external forces, prices will continue to move in the same direction and speed, hence a bullish candlestick suggests continued upward movement in the next phase, at least ensuring an initial inertia upward. Thus, a bullish candlestick often indicates further upward movement, which aligns with one of the three core assumptions of technical analysis: stock prices fluctuate along trends, and this following the trend is also the essence of technical analysis. Conversely, a bearish candlestick indicates continued downward movement.
Look at the size of the body.
The size of the body represents the intrinsic momentum; the larger the body, the more obvious the upward or downward trend. Conversely, the less obvious the trend. Taking the bullish candlestick as an example, its body is the part where the closing price is higher than the opening price. The larger the bullish candlestick body, the stronger the upward momentum, just like the physical principle that the greater the mass and speed of an object, the greater its inertial force. The larger the bullish candlestick body, the greater its intrinsic upward momentum, and its upward force will be greater than that of a smaller bullish candlestick. Similarly, the larger the bearish candlestick body, the stronger the downward momentum.
Look at the length of the shadow lines.
Shadow lines represent reversal signals; the longer the shadow line in one direction, the less favorable it is for the coin price to move in that direction. That is, the longer the upper shadow line, the less favorable it is for the price to rise, and the longer the lower shadow line, the less favorable it is for the price to fall. In the case of an upper shadow line, after a period of struggle between bulls and bears, the bulls finally lose ground. Once bitten by a snake, one is afraid of a rope for ten years; regardless of whether the candlestick is bearish or bullish, the upper shadow part constitutes the next stage's upper resistance, making the probability of the stock price adjusting downward significant. Similarly, the lower shadow line indicates a high probability for the coin price to attack upward.
Bullish candlestick:
A red (white) body indicates an increase on that day, with the opening price at the lower point of the body and the closing price at the upper point. (A large bullish candlestick indicates a strong upward trend with a surge of buyers, leading to unlimited buying. Holders, seeing strong buying sentiment, are reluctant to sell, leading to a supply-demand imbalance.)
Bearish candlestick:
A green (black) body indicates a decline on that day, with the opening price as the upper point of the body and the closing price as the lower point. (In the case of a large bearish candlestick, sellers dominate from the start. The market is pessimistic, and holders panic sell, creating a sense of fear. The market is one-sided, continuing until the closing price declines.)
Generally, the first 30 minutes after opening is the most active trading time of the day. The opening price reflects the value judgment of ordinary retail investors, who usually choose to open or close positions right after the market opens. Therefore, the opening price is often near the highest or lowest point of the daily chart, and then the price gradually tends to rationality. Institutions typically choose to operate near the market close to avoid overnight positions. (Note: The cryptocurrency market trades continuously 24/7, unlike the stock market.)
The market is composed of these pillars, and it is these that form various patterns, trends, etc. Below, we will discuss resistance and support.
What is a support level?
Support levels, as the name suggests, are only considered support when located at the bottom. In a K-line chart, when the price drops to a certain level and shows signs of rebounding or trend reversal, that level is called the support level. Support levels can be predicted through technical analysis.
A support level is a price point where buyers have found their interests, ultimately preventing the price from falling below its previous low. The support line is where the price stops falling when it approaches a certain point and may even rebound, caused by buyers entering at that price level. This point, which prevents the price from continuing to fall, is where the support line is located.
There are generally several situations for support levels:
1. Moving average support levels.
2. Support levels of highs and lows.
3. Support levels of gap openings.
What is a resistance level?
Resistance levels and support levels are exactly opposite; resistance levels are at the relative top. When the price rises to a certain key level and experiences a rebound or a trend reversal down, that level is called a resistance level. Resistance levels can also be predicted through technical analysis.
It is worth noting that two consecutive support levels and two consecutive resistance levels will form a complete channel. This is more conducive to our analysis and forecasting of price direction. Of course, we cannot judge buying and selling points solely based on these; we must also rely on moving averages and volume indicators for comprehensive analysis.
There are generally several situations for resistance and support levels:
1. Moving average resistance levels and support levels.
2. Resistance and support levels of highs and lows.
3. Resistance and support levels of gap openings.
Trading principles.
Generally speaking, traders choose to go long at support levels, setting protective stop-loss levels below the support. Traders choose to go short at resistance levels, setting protective stop-loss levels above the resistance. The reason for setting stop-loss levels is that the market changes unpredictably; even veteran traders with years of experience can be 'played' by the market, so we need to set stop losses to prevent sudden events. In this market, making more profits than losses is a win, and the capital retained allows for a comeback.
Points to note.
The strength of support and resistance depends on three factors: the length of the area (duration of the area), the height of the area (price increase), and the trading volume of the area. The more times the area is touched, the greater the fluctuation, and the higher the trading volume, the stronger the area’s support and resistance.
When candlesticks of different time frames conflict, we believe that the resistance and support levels on long-term charts are more important than those on short-term charts. In other words, the support and resistance formed by weekly trends are more significant than those on daily charts.
So how do we judge trends from price candlestick charts?
Trends play an important role in trading; traders use recognizable patterns in price data to make decisions rather than relying solely on simple price movements and intuition. So how do we discover and draw trends in price charts?
When looking at the price chart below, it's not hard to notice that the price seems to be moving along some invisible lines. This phenomenon can be observed regardless of the time frame; weekly price charts, daily price charts, and even 30-minute price charts all exhibit this.
Trend lines and trend channels.
The lines in the chart are known as trend lines. However, prices do not merely follow trend lines; they typically oscillate between two trend lines:
This is called a trend channel, one of the most commonly used concepts in technical analysis. One of the characteristics of trends is that they can be divided into smaller trend segments, which can be further subdivided.
Moreover, a fundamental characteristic of price trends is that they look extremely similar across different time frames.
How to draw trend lines.
The Tiger PC terminal provides drawing tools, and you can also use TradingView to draw trend lines. When drawing, I prefer connecting the 'body' edges of candlesticks, as bearish candlesticks reflect panic more, which does not help us understand trader psychology.
An upward trend connects the lows of candlesticks, while a downward trend connects the highs of candlesticks.
Trading principles.
Going long in an uptrend, traders choose to long when the price touches the trend line, setting their protective stop-loss below the trend line.
Shorting in a downtrend. Traders choose to short when the price touches the trend line, setting their protective stop-loss above the trend line.
Points to note.
The significance of trends depends on three factors: time period, length of the trend line, and the number of times the price has touched it. Weekly trends are more important than daily trends; the longer the trend duration, the more important it is; the more times the price touches the trend, the more significant it becomes.
In practice, we will find that the steeper the angle between trend lines and horizontal lines, the shorter the trend duration, while the flatter the angle, the longer the duration.$BNB 
Additionally, trading volume is also an important indicator for confirming trends. In an uptrend, trading volume increases when prices rise and decreases when prices fall. In a downtrend, trading volume increases when prices fall and decreases when prices rise. If trading volume does not align with stock price movements, it signals a trend reversal.
From significant losses to significant gains, summarizing 9 iron laws as a piece of advice for all retail investors! If you want to stay in the cryptocurrency world for the long term, please take the heartfelt words of this article seriously! Newcomers must keep these in mind to navigate the market with ease.
The cryptocurrency world is a space filled with opportunities and risks, especially for newcomers. How to survive and profit in a highly volatile market is a knowledge that requires continuous learning and practice.
1. In a bull market, the hottest coins that drop fastest are often those that have been heavily speculated on, especially projects with significant control. The more a coin attracts a large number of retail investors to chase, the greater the risk. It's like blowing up a balloon—the bigger it gets, the faster it bursts. Hot coins in a bull market are often favorites of short-term speculators, but they are also the easiest traps that can lead to total loss. Recommendation: Do not blindly chase highs, especially those coins that have soared dramatically in a short time. Stay calm and avoid becoming a 'bag holder.'
2. The tricks of altcoins are quite similar. The typical play of altcoins is to crash the market first, create panic, then slowly push prices higher to attract retail investors, and finally shift tactics to continue harvesting. This routine is tried and true, and newcomers can easily be taken advantage of. Recommendation: Be mentally prepared for altcoins, do not be misled by short-term price increases, and avoid over-investing.
3. The long-term trend of the market is upward. Although the cryptocurrency world experiences extreme short-term fluctuations, if we look at the longer time frame, the overall trend is upward. The historical performance of mainstream coins like Bitcoin and Ethereum has proven this. Recommendation: If you are a long-term investor, do not be frightened by short-term ups and downs; patiently hold quality assets, and time will reward you.
4. Potential coins that no one is speculating on. Truly promising coins often remain unnoticed at the bottom and are rarely mentioned. Those that are wildly speculated upon are typically tools used by manipulators for harvesting. Low-profile coins may quietly explode at some point. Recommendation: Pay more attention to projects with solid technology and reliable teams that have not yet been overly hyped by the market; they might become the dark horses of the future.
5. Be cautious with newly listed coins. Newly listed coins, especially those that experience extreme price fluctuations, are often traps set by manipulators. These coins typically lack real value support and are purely designed for harvesting. Recommendation: Stay alert with new coins, especially those that are highly volatile in their early phases, and do not rush to enter the market.
6. Price fluctuations are commonplace. Buying leads to decline, selling leads to rise; this is quite normal in the cryptocurrency world. The market's volatility is extremely high, and short-term price changes do not fully reflect a project's value. Recommendation: Maintain a good mindset and do not panic due to short-term fluctuations. Develop a solid investment strategy and execute it strictly.
7. The strongest rebounds do not indicate potential. The coins that rebound the hardest are often not truly promising but are rather speculative plays that have been driven up. These coins typically lack fundamental support and rise quickly but also fall quickly. Recommendation: Do not be misled by short-term surges; truly promising coins usually have more stable fluctuations and an upward long-term trend.
8. Beware of sudden pullbacks; you may get 'cut.' If the coin you bought suddenly pulls back after a rise, this could be a signal that the manipulators are starting to unload. Manipulators often attract retail investors by driving up prices and then sell off at high levels. Recommendation: When encountering a sudden pullback, promptly take profits or stop losses to avoid becoming a 'bag holder.'
9. Coins that explode in the second half. In a bull market, coins that perform mediocrely in the first half may explode by several times or more in the second half. These coins are like marathon runners, conserving energy in the first half and exerting effort in the latter half. Recommendation: Do not overlook those coins that perform average initially but have solid fundamentals; they might become the dark horses in the latter part of the bull market.
