After ten years of ups and downs in the cryptocurrency world, I earned 58 million yuan with a capital of 700,000 yuan. The secret lies in steady operation, which allows my monthly peak income to reach 70%. I once passed on the core of this wisdom to my disciple, who quickly mastered it and used it freely in actual combat. With only short-term operations, he doubled his income in just three months. Today, I specially compiled this valuable experience into a book and gave it to those who are destined to receive it. I hope you will cherish it and keep it properly.
Every friend who enters the cryptocurrency circle has the same original intention, no need to say more. If you just want to kill time here with a gaming mentality, then this battlefield may not be suitable for you. We enter the cryptocurrency circle to explore the way to extra wealth and make our family's life more fulfilling. In the cryptocurrency circle, technology is the stepping stone to profit, and perseverance is the golden key to long-term success.
If you are eager to make cryptocurrency trading your second career, hope to get a share of this field full of opportunities and challenges, and are willing to invest time and energy to learn and grow, then please pay attention to this article. Please read it carefully, every suggestion in the article is the crystallization of the wisdom of the cryptocurrency circle. Whether the market is a bull market or a bear market, these ten iron laws will be your precious navigation light. In addition, I will also share my ten years of practical experience in cryptocurrency trading, so stay tuned!
In the cryptocurrency circle, everyone has heard the story of "10,000 turning into 1 million", but the reality is that most people not only fail to make money, but are instead harvested completely by the market.
We have no inside information, no financial advantage, and no trading experience that can withstand several rounds of bull and bear markets. All we can rely on is to understand the market, ourselves, establish rules, and control our emotions.
The cryptocurrency world is not a shortcut to instant wealth, but a battlefield where only a few people survive.
1. Understand the market first: This is a world where uncertainty is king
The essence of the market is not a technical game, but a highly complex probability game.
You have to accept that no matter how good a strategy is, it cannot consistently make money in all circumstances. Any trading system that claims to have a "100% winning rate" is a scam.
What we can do is not to beat the market, but to adapt to the market and use discipline to fight uncertainty.
Profit and loss come from the same source: the way you make money determines the depth of your loss. Heavy position all-in: it may double or go to zero. High leverage to grab rebound: eat a bite of meat, but as long as the direction is wrong once, the position will be directly blown up. Counter-trend flattening: sometimes it can be untied, but under a unilateral trend, it is chronic suicide.
The traders who can really survive are those who repeatedly bet on the "probability advantage" in a systematic way - they make more money when they are right and lose less when they are wrong.
Most people die in the market not because of ignorance, but because of self-righteousness: Prediction addiction: Trying to catch all the tops and bottoms Technical obsession: Crazy pile of indicators, but ignore positions and risk control Superstitious luck: Take the credit for profits and blame the market for losses Overconfidence: After a few consecutive profits, they think they are invincible
Remember: Discipline > Technique, Execution > Inspiration, Stability > Stimulation.
The trades that really make money are often boring.
From 32 blow-ups to stable profits: my top stop-loss method
1. The Blood and Tears Data Wall
The transaction logs from 2019-2024 reveal:
First 3 years: 372 trades, 29 liquidations, maximum drawdown 98%
The next two years: 189 trades, 0 liquidations, and an annualized return of 326%. 2. Death spiral formula
(Principal × Leverage) (1-Stop Amplitude)^N=0
When N>10, the probability of account zeroing is>83% (Cambridge University Cryptocurrency Trading
Research)
3. Three-dimensional stop loss system time and space anchoring method (technical level)
Leverage coefficient formula: 1/leverage multiple × 2) = maximum tolerable volatility (20 times leverage 2.5% stop loss)
Time value conversion: 4-hour chart stop loss interval ≥ 1.2 times of ATR indicator
On-chain circuit breaker mechanism (data layer)
Whale Monitoring: When the Top 50 addresses change more than 3 times the average, the stop is automatically triggered
damage
Gas fee warning: When ETH network Gwei>150, all leverage orders will automatically reduce positions by 50%
Emotional entropy model (psychological level)
Adrenaline test: If the interval between consecutive orders is less than 8 minutes, the position will be locked for 45 minutes
bell
Profit and loss ratio imbalance: the profit/stop loss ratio of the day is less than 2:1, triggering a 24-hour cool-down
Expect
4. Military-grade stop-loss execution plan
Hardware Configuration
Physical stop loss key: Modify the mechanical keyboard and set an independent stop loss shortcut key
Voice control system: "Stop loss!" voice command directly reaches the exchange API
Smart Contract Escrow
ERC-20 Stop Loss Protocol: Deployment of an Automated Stop Loss Smart Contract
Conditional trigger: When the oracle price triggers the preset value, the on-chain liquidation is completed within 0.3 seconds
5. Practical review: Ethereum battle in 2024
April 12:
Opening price: $3458 (20x)
Initial stop loss: $3379 (2.3%)
April 15:
Break through 3620, move the stop loss up to 3620, move the stop loss up to 3550 (to protect the principal)
April 18:
Hit $3780, start dynamic tracking (ATR×1.5)
April 25:
The highest reached 4129, the final profit was 4129, the final profit was 4072
The maximum retracement during the whole process is only 1.8% 6. Survival Pyramid
TO level: principal preservation
Level T1: Stop-loss discipline
Level T2: Position Control
Level T3: Technical Analysis
(Key Insight) For every 1 profit in the crypto market, there is a need for 17% risk preparation. 89% of professional traders’ orders have stop losses, of which 63% are never triggered.
7. Stop loss evolution path
Bronze (manual stop loss) Silver (indicator linkage) Gold (on-chain automation) Diamond (AI dynamic adjustment)
Last line of defense: When you see this article, do three things immediately
Add stop loss to existing positions
Delete the transaction APP's "Cancel Stop Loss" permission to transfer 20% of the total funds to the cold wallet
(Top-level philosophy) The real risk control is to end the game before a margin call occurs.
Remember: we earn from volatility, but we survive by the accuracy of stop loss.
In two years, with less than 70 yuan, the winning rate reached 418134%, and more than 28 million yuan was made. Just relying on this trick (K-line tactics), it easily doubled 100 times, with a winning rate of 100%, and it has been used repeatedly (suitable for everyone, easy to understand, especially suitable for actual combat)
The Basics of Cryptocurrency K-line Analysis from Novice to Expert
1. 📈 Why should we learn technical analysis? Technical analysis can help us understand market behavior, especially for individual traders. By analyzing price charts, we can identify market trends and trading opportunities. Technical analysis makes trading more flexible, and long-term profits depend on trading skills, not luck.
2. 📊 Basic elements of candlestick charts The candlestick chart consists of four basic elements: opening price, closing price, highest price, and lowest price. The candlestick chart uses these elements to show the market trend. The positive line represents an increase, and the negative line represents a decrease.
3. 🧩 Classification and characteristics of K-line K-line is divided into single K-line, double K-line and multiple K-line combination. Single K-line includes big Yang line, medium Yang line, small Yang line, etc.; double K-line includes engulfing pattern, pregnant line, etc.; multiple K-line combination includes evening star, morning star, etc.
4. 📜 Basic usage of candlestick charts Candlestick charts not only show price changes, but also provide market trend and reversal signals through different forms and combinations. For example, shooting star lines and hammer lines indicate bearish and bullish trends in the market respectively.
5. 💡 How to use the moving average system The moving average system is a commonly used tool in technical analysis that can help traders identify the main trend of the market. By observing the crossover and position of the moving average, the long and short trends of the market can be determined.
6. 🚀 Price Tracks Price tracks show different candlestick patterns and forms in different time frames. For example, a 1-hour chart may show a cross or star pattern, indicating indecision or a potential reversal.
7. 🔍 Identify market trends Use the moving average system to define market trends. Short-term EMA is closer to the current price than long-term EMA and is more sensitive to market prices. When the short-term EMA crosses the long-term EMA, it is a bullish signal; otherwise, it is a bearish signal.
8. 📋 Common K-line combination patterns Different K-line combination patterns have different market meanings. For example, the Evening Star and the Morning Star are common three-line combinations, indicating the bearish and bullish trends of the market respectively.
9. 🏰 Support and resistance interchange Once support is broken, it will become resistance, and vice versa. This interchange relationship is very important in technical analysis and helps to determine entry and exit points.
10. ✨ Fibonacci sequence and golden section Fibonacci sequence and golden section are widely used in technical analysis to determine the support and resistance positions of prices. Commonly used Fibonacci retracement levels include 38.2%, 50%, 61.8%, etc.
11. 💬 The role of volume Volume is the driving force of price changes. Analyzing changes in volume can help identify the buying and selling forces in the market. High volume is usually accompanied by sharp price fluctuations.
12. ⏳ Analysis of volume, price, time and space Volume, price, time span and fluctuation space are the four basic elements of technical analysis. The analysis of volume and price can help identify market trends. For example, if the price does not rise at a low level, it may be a good buying opportunity, but if the price does not rise at a high level, you need to be cautious.
8 golden rules of cryptocurrency trading summarized in 10 years | Investment discipline that even novices can understand:
After 10 years of experience in the cryptocurrency industry, from liquidation to stable profits, I have summarized these practical experiences to help novices avoid pitfalls. There is no chicken soup in the whole article, only pure dry goods! (with operation list)
1⃣ [Idle money investment principles | Use funds that do not affect your life]
Always use only 10%-20% of disposable funds, for example, if you have a deposit of 100,000, you can only use 20,000 to enter the market. I have seen too many people bet their entire fortunes or even borrow money, and finally their mentality collapsed. The real winners are all in a state of "affording to lose". Take Bitcoin fixed investment as an example: buy 10% of your monthly salary in batches, and a 50% drop in the bear market will not affect your quality of life.
2⃣ [Stop loss is more important than profit | 5% forced stop loss line]
When the direction is wrong, you must stop loss 4 immediately if you lose 5%. I once held a single order when LUNA plummeted, and watched 100,000 become 1,000. Now my discipline is: short-term break 5-day moving average to exit, medium-term break 20-day moving average to clear 4. Remember: only when you are alive can you have a chance to turn around.
3⃣ [Position Management Pyramid｜Never Fully Positioned]
Divide the funds into 3 parts:
❶ 30% mainstream coins (BTC/ETH) are held for the long term
❷ 50% band operation (enter and exit according to the 15-minute KDJ indicator) 1
❸ 20% is reserved as margin reserve
When encountering a sharp drop, add positions three times at -15%, -30%, and -50%2
4⃣ [Technical indicator combination | Three charts determine the outcome]
❶ 15-minute K-line to see short-term trends 1
❷ Daily MACD determines the long and short directions
❸ Weekly Bollinger Bands identify pressure support levels
When the three appear "golden cross + middle track support + volume amplification" resonance, it is the best entry signal 5
5⃣ [News Operation Guide | Good news is bad news]
If you don’t sell on the day of a major positive announcement, you must sell 10,000 on the next day when the market opens higher. When the Bitcoin ETF is approved in 2024, many people chased the rise and were trapped at the high point of 69,000. Remember: when the media starts to frenzy, it is often the time for the dealer to sell.)
Appendix: List of tools I use
• Market: TradingView (the most comprehensive line drawing tools)
• Information: Jinshi Data (real-time monitoring of macroeconomic policies)
• On-chain data: Glassnode (tracking whale addresses)
• Anti-fraud guide: TokenSniffer (identifying Dogecoin)
Finally, I want to say: there is no holy grail in the cryptocurrency world. These experiences are all earned with real money. You may feel constrained at first, but when you form muscle memory, you will understand that discipline is the prerequisite for freedom. Let's encourage each other!
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