How to turn 3000 yuan into 100,000 yuan in cryptocurrency, I share my experience with you, hoping to help you avoid detours.
Want to make money? First, understand how to play in the cryptocurrency world! Spot, contracts, spot, etc., finding what suits you is the most important. Blindly following trends will only end up as cannon fodder!
A guide for small capital in cryptocurrency to turn into millions: Core strategies from entry to doubling explained in detail.
Part One: Starting Point—Starting with small funds, prepare mentally.
In the cryptocurrency world, starting from small funds to earning tens of millions is not impossible, but before you decide to embark on this path, you must clarify your mindset. To succeed, you must first understand—cryptocurrency is not a game for getting rich overnight; it is a battlefield that requires continuous learning, patience, and rational operation.
Many people enter the cryptocurrency world with fantasies of getting rich quickly, thinking they can invest a few thousand yuan and earn millions or tens of millions in just a few months. However, this mindset often leads to hasty operations and blind following, ultimately getting eliminated by the market.
Mindset anchor:
1. Stay rational: Do not pursue short-term profits; be prepared for long-term battles.
2. Risk awareness: No matter how confident you are, always set a stop-loss point before each trade to ensure you won't be eliminated from the market due to one failure.
Have you ever fantasized about becoming rich overnight? I did too, but when I lost my first amount of money, I realized this path was much harder than I imagined.
Part Two: In-depth learning and research, laying a solid foundation.
In any investment market, knowledge is the winning weapon, and in cryptocurrencies, project research is the most critical part. You need to know that blindly following trends not only leads to losses but also causes you to miss out on real opportunities.
Research tools:
· CoinMarketCap and CoinGecko: Used to view information such as market capitalization, circulation, and trading volume of coins.
· Messari and Glassnode: Used for viewing on-chain data, project historical performance, and investment trends.
How to research a project:
1. White paper analysis: The project's white paper is its 'instruction manual' for vision, technology roadmap, and application scenarios. A good project must have clear landing scenarios and the ability to solve industry pain points.
2. Team background: The technical background and past project experience of the team are crucial. For example, the technical team of Ethereum founder Vitalik adds immense credibility to the project.
3. Investment institutions: Support from top investment institutions often means project sustainability; for example, projects invested by a16z usually receive a lot of attention.
4. Community and development activity: A long-term promising project must have a strong developer community and active technical updates. You can check the frequency of code updates and developer participation through GitHub.
Part Three: Trading Strategies - Precise Position Building, Reasonable Layout
Trading strategy is the core of the entire operation manual. Making the right decision at the right time is the key to your success or failure. Many people's losses are often due to chasing highs or missing suitable entry points.
Strategy One: Phase position building to avoid risks.
The market is very volatile, and to seize good opportunities, phased position building is the best strategy. Do not invest all your funds in a single project at once, but rather enter the market gradually in stages.
· Initial position: When building positions for the first time, invest a maximum of 20%-30% of your planned total position. Maintain sufficient liquidity to add to positions when the market pulls back.
· Position addition timing: Use technical analysis tools (such as candlestick charts, RSI, etc.) to add positions during market pullbacks or sideways movements.
· Risk control: For every investment, always set a stop-loss point to ensure you won't incur huge losses due to violent market fluctuations.
Strategy Two: Follow the trend and go with the flow.
In a bull market, going with the trend is key. Through technical analysis, you can identify certain coins' rebound points at key support levels. At the same time, pay attention to the market sentiment of projects, such as Google Trends and social media discussions. When a coin starts to attract a lot of attention, it may mean that its upward potential has been opened.
Part Four: Timing - When to act, when to take profits.
In cryptocurrency investment, the biggest taboo is not knowing when to take profits. Many people watch their funds rise but always want to wait for 'higher', and when the market reverses, the previous gains evaporate instantly.
Profit-taking strategy:
1. Take profits in phases: Like building positions, you also need to sell in phases when taking profits. You can sell 50% of your holdings when your expected target is reached, keeping some positions for observation.
2. Goal setting: Set profit-taking targets based on the project's long-term potential and market environment; do not seek short-term quick profits. For example, when a project rises by 3x or 5x, you can consider taking partial profits.
Avoid FOMO:
The market will have ups and downs; you cannot catch every rise. Therefore, after making a profit plan, you must strictly implement it and not change your decision due to temporary market fluctuations.
Part Five: Risk Management and Defense Strategy - Always be prepared for the worst.
Risk management is an indispensable part of any investment strategy. No matter how optimistic you are about a project, always maintain risk awareness. Especially for small capital investors, one failure may mean complete exit.
Core defense strategy:
1. Control position size: Never bet all your funds on one project; it is recommended that the investment in one project does not exceed 20% of the total funds.
2. Take losses in a timely manner: When the market undergoes unfavorable changes, cut losses decisively. For example, if the coin price drops below your set support line, sell immediately, even if it means leaving at a loss; do not hold onto hope during a decline.
3. Risk hedging: You can hedge risks by holding stablecoins (like USDT) or through multi-project investment to reduce losses from a single project failure.
Conclusion: Keep learning, take steady steps, and achieve wealth goals.
The cryptocurrency world is never a game of luck, but relies on strategy, knowledge, and patience. Through correct trading strategies, phased position building, timely profit-taking, and effective risk management, you can completely achieve the leap from small capital to financial freedom in cryptocurrencies.
Please remember that the most important thing is not to succeed every time, but to learn from failures and be fully prepared when the next market opportunity arises.
Success lies in continuous learning, adjusting, and executing. The cryptocurrency world is full of opportunities but also traps. Only those who truly understand market analysis, control risks, and persist in learning can remain undefeated in this rapidly changing market.
There is an extremely practical trading method with a success rate close to 100%! (A must-watch for newcomers)
First move: Diversify investments for safety.
Take 8000 yuan as an example, divide it into ten parts, each part 800 yuan. Remember during operation:
Take profits immediately at 50% profit (for example, if 800 becomes 1200, withdraw) and cut losses decisively at 30% loss (if 800 drops to 240, accept the loss).
Precise timing, every morning at 10 o'clock, I only focus on coins with high trading volumes. Once they pull back, I strike short. Eat and leave, don’t be greedy.
The cryptocurrency world is not short of opportunities; risking everything feels good once but leads to liquidation and loss!
Second move: Project screening techniques.
Choose coins that have a daily trading volume exceeding 100 million, and remember three iron rules:
1. Take profits immediately when you earn 20%, don't be greedy and cling to it;
2. Cut losses directly if you lose 10%, preserve your principal;
3. Single coin holdings should not exceed 5% of the total position.
Keeping a position is like keeping your life!
Many people die on the path of 'full position + no margin'. I always leave 1/3 of my position to deal with unexpected situations. Even if there is a sudden market surge, I can calmly add to my position.
Profit distribution = contract lifeline!
Put all profits back in? You will be cleared sooner or later. My method is:
· 60% convert to spot (lock in profits)
· 30% in stable assets (to prevent drawdown)
· 10% continue to speculate (play with the money earned)
Even if you explode once, it won’t hurt too much.
The last lifeline (key to survival) of all altcoins: 'Use profits to chase up, don't risk your principal!' After the first position earns 50%, use 80% of the profit to chase the second wave. If it drops, don’t feel hurt (the loss is the profit), if it rises, roll it into a snowball.
Reflections and insights on contract trading after over ten years of trading cryptocurrency.
1. Contracts are essentially just a tool.
Before I started getting involved in contracts, I heard all sorts of different opinions. Some thought contracts were like a flood beast, while others believed they were machines for making rich people. But in reality, they are just tools; the key is how to use them. Typically, large funds use them for asset hedging, that is, hedging, but many people treat them as a means to get rich (I initially had that idea too). This is a zero-sum market; there are profits for some, which means losses for others. Coupled with trading platform cuts and potential market manipulations, retail investors are in a difficult position. Saying contracts are like a meat grinder is not an exaggeration. If you want to survive in this field, you must master its survival rules; only the fittest can survive.
2. Always set a stop-loss when opening a position (please repeat it three times in your mind). The stop-loss range can be between 1 to 100 points, specifically determined based on the holding ratio.
3. The so-called 'eternal profit method.'
Set the stop-loss at the original price, first use one-tenth of the position for testing, if the trend judgment is correct, continue to add positions, and then take profits during pullbacks. It sounds beautiful, but the reality is very harsh. First, judging the trend is extremely difficult; the market mainly consists of fluctuating trends, and opportunities to catch a unilateral trend are very few. Secondly, even if the judgment is correct, continuing to add positions will raise the original opening price, and once a small pullback occurs, it may trigger the original price stop-loss, and frequent operations will also incur high transaction fees. Although doing it right once may multiply the principal several times or even hundreds or thousands of times, doing this long-term will ultimately just be working for the trading platform, and it's not sustainable unless you earn once and leave immediately.
4. Beginners often dislike setting stop-losses.
I also went through this stage. When the emotion of loss aversion is amplified, it can lead to frantic trading, thereby infinitely expanding the risks. Once the funding chain breaks, you can only watch helplessly as you get liquidated, and often, it happens before you realize it. What was intended to be a profit of one-tenth ends up losing all the principal.
5. There are methods to earn forever in contracts, but definitely not something that a newcomer to this field can master.
Many people participate in contract trading to earn big money with small funds, but to earn big money, there are only two paths: one is to win with position size, which means heavy positions; the other is to win with amplitude, such as large drops like 312, 519, or large rises like from 10,000 to 60,000. To capture such amplitude market trends, any analysis may be useless; the only way is to not take profits. The best profit-taking method is not to take profits, but this is extremely counterintuitive. 100 times or even 90 times may result in losses or break-even, which I also can't achieve. If the position is small, you can't earn big money, even if the amplitude is large; if the position is large, a small amplitude is also useless, and it's easier to get liquidated. All those who earn big money are masters who can balance position size and amplitude.
6. The market is unpredictable, just like the army has no permanent tactics, and water has no fixed shape.
The market always develops in the direction of least resistance; betting on trends and guessing sizes are essentially no different. Learning a lot of technical analysis may not be useful. Knowing how to read candlesticks and some basics is usually enough. Technical analysis is not difficult; remember this: if the trend is upward, it will continue to rise; if the trend is downward, it will continue to fall; if it rises a lot but pulls back little, it will rise even higher; if it falls a lot but only rebounds a little, it will continue to fall. The larger the cycle, the more effective this rule is. Understanding this also means mastering the core rules of technical analysis.
7. The real way to make big money is to be in the trend.
Perform rolling operations in trends; it's not a problem to trade back and forth with small positions during volatile markets, but if you develop this trading habit, it will be hard to hope for wealth in this lifetime. Short-term trading can make money quickly, but you can also lose money quickly. Over time, you might earn less than the transaction fees. If you think you are the chosen one, then go ahead and try it, but know that losing money often starts from winning.
8. The timing of entry is very important; many operations that lead to losses are due to the fear of missing out.
When there is no position, during declines, wait for a rebound before opening a short position; remember not to chase the fall; the same goes for rises, wait for a pullback to enter, do not chase the rise. Doing this might cause you to miss some strong trending movements, but most of the time, it will be safer. However, many people only see profits and overlook risks, ultimately blaming others for their missed opportunities.
9. Do not be afraid.
Many people are afraid after losing in the futures market and become hesitant to open positions again. When they trade again, they become timid and indecisive. Losses can lead to an excessive focus on purpose, a strong desire for results, always thinking about profit, always trying to avoid losses, and wanting to be right every time—this mindset cannot lead to profits. The ancients said, 'Do not be joyful for gains, nor be sad for losses.' In trading, this can be interpreted as: do not rejoice in profits, nor be saddened by losses. When your heart is calm enough, you will achieve something. Trade with the enthusiasm and passion you had on your first day of futures trading; do not be afraid of wolves in front and tigers behind; if you are wrong, cut losses; if you are right, hold on. Do not rush to exit before the trend reverses, or else you will end up missing out.
10. Enthusiasm.
No matter what you've been through, always maintain enthusiasm and passion, holding onto a beautiful longing for life. Be as full of fighting spirit as you were on your first job, and love boldly like you did on your first date. Many things in life are like this, whether in career or love, there may not always be results, and likely there won't be, but if you don't strive or invest, there will be no results at all. Just focus on doing what you need to do, and don't worry too much about the outcome.
11. Many people are always thinking about opening positions, even fully invested; for them, staying out of the market is more uncomfortable than losing money.
In fact, the duration of trend movements is often short; controlling drawdowns is the most important. How to control drawdowns? Staying out of the market is the best method. Don’t always think about capturing every trend; catching one or two opportunities in a year is enough. Missing out is normal, so don’t regret it. As long as you are still in this market and live long enough, there will be plenty of opportunities in the future. Time is the only code for retail investors; maintain a calm mindset, wait patiently, making money is just a side benefit, enjoying life is fundamental.
12. The mindset and insights of trading.
In trading, the mindset is more important than knowledge; knowledge is like the moves, while the mindset is the internal power. Just like Qiao Feng can defeat several Shaolin monks using the Taizu Changquan precisely because he has deep internal power. Being accurate doesn't matter much; what's important is how to act after being accurate, how to act after being wrong, how to maintain composure in holding positions, how to have a good mindset, how not to fear missing out, and how not to fear drawdowns... If you always hold a mindset of wanting to win and fearing to lose, it will be very hard to make money in this market. Some things newcomers might not realize at first, but as long as you spend enough time in this market, you will know these are truths.
I have navigated the market for many years, deeply understanding its opportunities and traps. If you have investment difficulties and are dissatisfied with losses, leave a 999 in the comments! I will share insights.
