After seven years of trading cryptocurrencies, I once turned 500,000 into over 9.6 million, and also experienced weeks of losing it all and six months of silence. Coming back again, I started with 50,000. Along this journey, I learned one thing: true 'cryptocurrency enlightenment' is the ability to remain calm and composed in any market condition.
I have tried 80% of the technical methods on the market, but ultimately found that the most useful one is 'buying the dip.' Today, I want to share the condensed experience of the past seven years with you, hoping to help you achieve the leap from recovering losses to stable profits.
🔑 Six core principles for getting started with cryptocurrency trading.
1. Absolute honesty, do not deceive yourself.
The cryptocurrency world is the place where reality hits the hardest, leaving no room for illusions. You must be clear: why are you buying, and why are you selling? Many people lose money not because of poor skills, but because they never honestly face their decision-making motives.
2. Always be clear about what you are doing and develop your style.
If trading long-term, research fundamentals; if trading short-term, look at trends and sentiment. Style is not about following the crowd but about refining your 'unique standard' through practice.
3. Accept all the shortcomings and risks of every system.
There is no perfect strategy. Long-term trading is lonely, short-term trading is volatile, and short-selling has high risks. Only those who can persist with their system can go far.
4. Patience is key to success or failure.
Real opportunities are never available every day. Did the trend break? Wait. Is the reversal not confirmed? Endure. Many trades don’t lose because they didn’t earn, but because they earned too early and ultimately lost.
5. Position and stop-loss systems must exist.
Putting all funds into a single trade without a stop-loss is a common deadly mistake for beginners. Controlling risk is the greatest responsibility for the future.
6. If you gamble, you must accept the outcome and dare to admit mistakes.
If you make a wrong decision, you have to admit it, without complaining or making excuses. Recognizing mistakes and cutting losses is the daily practice of a professional trader.
💼 Summary of practical experience.
1. Transaction fees determine that you cannot trade frequently.
Every entry means a disadvantage; lower trading frequency makes it easier to win. I now make dozens of trades a year, all steady and solid.
2. Only use methods you are familiar with, and don’t be greedy.
The more methods you have, the easier it is to make mistakes. Indicators and models are just tools; the core is 'how well you can use them.' I am a reversal trader, only doing the rhythms I am familiar with and abandoning everything else.
3. The 'farmer's logic' of buying low and selling high.
Do not raise pigs when pork is expensive; enter the market and fatten them when pork is cheap. The cycle is always repeating: enter when others are fearful and exit when others are greedy; this is the essence of investing.
4. Scientific money management is the basis for survival.
For trend trading, admit mistakes with a 10% stop-loss. For reversal trading, larger tolerance is needed. But regardless of style, funds must be divided, and risk control must be strict.
🧭 Finally, I want to share a few heartfelt words:
1. The market never lacks opportunities; what it lacks are people who can survive long-term.
2. Failing to keep the money you earned is also a failure.
3. A good trader does not win every day but can consistently output and avoid major losses.
4. If you are determined to make cryptocurrency trading your profession and not leave the market for the next three years, then thoroughly understand, practice, review, and refine this logic.
