Financial freedom at 38! Entered the cryptocurrency market at 25 and earned an eight-figure sum in 10 years.
A bloody warning: 99% of people fail due to 'mindset' rather than technology!
At 25, I jumped into the cryptocurrency market with all my savings of 50,000; by 38, I earned enough through trading to last a lifetime, with assets over ten million. No team,
No insider information, not even having worked a day—now I wake up naturally every day, walk my dog, drink tea, watch candlesticks. Worries? Not existent.
But if you think this is a 'feel-good' article, you can scroll past it now.
The truth I need to tell may make 80% of people in the cryptocurrency market shiver.
Making 10 million does not require extraordinary abilities; you just need to understand the principles of making money.
First, you need a catalyst; this catalyst is the cash flow from your off-market income. For example, 50,000 to 100,000 a year. It ensures that you do not need to sell assets and miss opportunities.
Second, when faced with good opportunities, such as a bull market or bear market in cryptocurrency, do not invest excessively. This excess does not mean you cannot hold a large position, but rather that you cannot let this joy cloud your judgment and cause you to take unnecessary actions, and you must not add various forms of leverage or borrowing.
Having accomplished these two points, for the third point, you need a bubble opportunity. A bubble opportunity refers to a time when everyone's assets are soaring, and everyone is a rich person. At this time, you must sell, turning the bubble into art. The market can allow everyone to have unrealized gains, but it cannot allow everyone to make money. When everyone has unrealized gains, it is the bubble opportunity; sell decisively.
Moreover, you need to experience 1-3 bubble opportunities, master the methodology to burst bubbles, and hold onto the money without any use until there are no bubbles and then buy in.
If you just hold on blindly, you will likely not hold on for long. You must actively apply methodologies; it is not just about holding. With more money, you can afford to hold, but with less, you must give up some security to take on the bear market cycle.
When everyone advises you not to buy, there is a huge cognitive gap when everyone says you cannot buy it.
They are the source of your proximity to bubbles. If they all say it's good, you will definitely be swept down without any opportunities.
Assets of bubble-exploding types must not be altcoins or air coins; if you perceive a possibility of them dying, you should not choose them.
It must have gone through two cycles and still be on the rise; the only certainty is BTC.
Another point is about mindset.
I have always been particularly conflicted about a question: If I never get married or have children and scrimp and save to become wealthy, will I, when I grow old, also have developed a habit of frugality without heirs to inherit my wealth, making my life somewhat tragic? But if I do not do this, I will also end up poor and tragic when I grow old.
Rest assured, even if you scrimp and save, you will not become a wealthy person. If the process of making money does not ignite your passion to the point of losing sleep, and there are no intrinsic motivators beyond making money, you will not become rich, nor will there be anything for others to inherit.
You must spend when necessary; normal life is important. I once walked the path of extreme frugality, which was a madman's behavior. I now understand that it was wrong. Most people cannot manage it and will eventually suffer a mental breakdown.
After making 10 million, how to keep 10 million.
1. Some assets are opportunities of the era; you will have to wait for the next one; there will be assets like this after BTC. But you have to wait.
Assets may change, but human hearts do not.
2. Can you maintain the same consumption level after having a net asset of 10 million? It’s not about saving but maintaining the same level; this is key.
3. Do not inflate and create chaos; when you have money, starting to spend wildly is a sign of decline.
4. Break free from the cognitive pressure caused by social relationships at all levels, such as when others ask to borrow money, seek investment, or emotionally manipulate you.
Some people will be taken away by women, others by friends. Once you have money, someone will find a way to take money from you.
You are the client of everyone around you; you must remain vigilant, as most people cannot pass this test.
Those who push through will lose a lot and gain loneliness.
Survival Rules in the Cryptocurrency Market: 15 Iron Rules to Navigate Volatility
In the ever-changing cryptocurrency market, survival is the ultimate victory. There are no celebrations for the lucky; only consistent winners who strictly adhere to the rules. The following 15 survival rules are key guides to navigating market cycles:
1. Capital is paramount: Prioritize safety; it is better to miss an opportunity than to take risks. Ignoring risk will ultimately backfire on all your gains.
2. Avoid greed and seek stability: Give up the fantasy of getting rich quickly; small profits accumulated are better than big gambles. Control your desires to seize real opportunities.
3. Diversify to hedge: Use a diversified asset portfolio to spread risk, keeping over 20% cash. During market reversals, liquidity is a lifeline.
4. Strictly adhere to discipline: Stay away from downtrend coins, refuse to chase highs and sell lows. Impulsive trading will only cost you 'tuition' in the market.
5. Know when to enter and exit: When the market is sideways, build positions gradually and decisively take profits when targets are reached. Do not be greedy or cling to positions; only then will the truth be revealed.
6. Respect risk: Money in the market is endless, but balances can go to zero. Taking profits at the right time ensures you smile until the end.
7. Decisive stop-loss: When the fundamental situation worsens, cut losses promptly. Hesitation can turn small losses into abyss; preserving capital is essential for the future.
8. Go with the trend: For long-term views, look at weekly charts; for very long-term views, look at monthly charts. When trends reverse, take profits promptly rather than resisting.
9. Beware of extremes: Reversals often occur after drastic rises and falls. Always remain alert to 'irrational exuberance.'
10. Better to lack than to have excess: 90% of market movements are noise. Learn to be in cash and wait; missing an opportunity is not a loss, but making a mistake is fatal.
11. Patience wins: Rather than blindly searching for opportunities, it's better to wait for trends to clarify. Top trading wins by waiting.
12. Know when to stop: Set profit targets and take a timely break once achieved. Maintaining rationality is more important than pursuing extremes.
13. Stop-loss is a responsibility: Stop-loss is the bottom line, profit is market-dependent. Do not mistake luck for ability; don't let chance ruin your plans.
14. Time compounding: Frequent trading depletes capital. Sticking to the trend and enduring loneliness is the way to maintain prosperity.
15. Unity of knowledge and action: Even the most perfect strategy is meaningless without execution. Use discipline to combat inner demons and let rationality lead the trading.
These rules embody countless lessons learned through blood and tears. Only by engraving these rules into your bones can you become a true survivor and victor in the turbulent cryptocurrency market.
Iron Rules of Trading Cryptocurrencies:
First, for coins with complex situations that you cannot clearly see, do not rashly enter; pick the soft persimmons to squeeze; trading is the same.
Second, do not invest all your money in the same coin at once, even if you are very optimistic about it. Even if you later prove to be correct, do not buy in one go. Because the market changes rapidly, no one knows what will happen tomorrow.
Third, if you mistakenly buy a coin in a downward trend, you must sell quickly to avoid further losses.
Fourth, if the coin you bought hasn't lost value yet but has entered a downward trend, you should exit quickly and wait.
Fifth, for coins that are not in an upward trend, it is advisable to pay less attention. Regardless of what happens in the future, do not accompany the big players to build positions. Retail investors do not have the time to waste with them.
Sixth, do not fantasize about making money while constantly trading short-term, entering and exiting every day. Frequent trading may bring you pleasure, but it will cause you to lose a lot of money, benefiting only the exchange. Moreover, you do not have that high of a level; you are not the big player. Do not buy too many coins; ideally, do not exceed 10, as you do not have enough energy to watch over them. It’s like wanting to marry five wives; even if you are fit enough, you cannot satisfy all of them. The story of Wei Xiaobao only happens in novels.
Seventh, this coin is very cheap now, it has fallen a lot; that is not a reason for you to buy in, NEVER!! It could still be even cheaper!!!
Eighth, this coin is expensive now, and it has risen a lot, but that is not a reason for you to refuse to buy or sell. It can still rise higher!
Advice
1. Do not easily sell strong coins; prioritize strong coins, achieve partial success, engage in both hot spots and strong coins, suitable for both investment and speculation.
2. The most important thing for a trader is adaptability during trading.
3. Qualitative analysis is essential. Qualitative analysis on large cycles, select coins on weekly charts, validate on monthly charts, and track on daily charts.
4. Follow the rules; use Bollinger Bands or your own chosen moving averages to observe market conditions.
5. Abilities without guidance rely solely on technical expertise; repeat successful experiences to make earning money a habit; consistently earning is more important than making a fortune.
As an old player in the cryptocurrency market, I have summarized 12 iron rules of trading today, each of which is a lesson learned through blood and tears. After reading, you can save 100,000!
1. East-West time difference: Even if you stay up late, you must monitor cryptocurrency market conditions, which are mainly concentrated around European and American times (21:30-7:30 Beijing time); significant rises usually happen at night! So, if you want to make money, staying up late is a must! Sleep at 20:00, wake up at 4:00 to monitor the market; this is the schedule of a qualified trader.
2. Don't panic during daytime declines: If foreigners pull the market up at night while it declines during the day in China, do not be afraid! At 21:30, when foreigners enter the market, they will bring it back in minutes! Remember: Daytime declines are buying opportunities; do not chase highs during daytime rises; they are likely to drop back at night.
3. The deeper the spike, the stronger the signal: A candlestick spike (long upper and lower shadows) is a common tactic used by big players. The deeper it goes, the stronger the reverse signal!
After a spike, it is often the best time to buy or sell; never let the big players trick you into getting off!
4. When news lands, it is usually negative: Before significant meetings or good news, prices will rise, but once the news lands, they will immediately drop back! Therefore, layout in advance and run as soon as the news breaks; do not be greedy!
5. Heavy positions lead to liquidation; light positions are the way to go: Holding heavy positions? Congratulations, you are already on the exchange's liquidation list! The big players focus on heavy-position users, pulling and crashing, causing you to be liquidated in minutes! Therefore, diversifying with light positions is the way to survive!
6. Stop-loss leads to drops, take-profit leads to rises: When a short position hits stop-loss, it drops; when a take-profit hits, it rises. The big players do not want you to make money! Therefore, stop-loss must be cautious, take-profit should be done in batches, and do not let the big players lead you by the nose!
7. Getting close to breaking even: Stop dreaming: Breaking even soon? The rebound suddenly stops! How could the big players let you escape easily? Therefore, when close to breaking even, reduce your position appropriately; do not be greedy!
8. Excitement = waterfall warning: When you are overly excited, the waterfall is about to come! The big players use your emotions to cut you off; keeping calm is the way to go!
9. When you have no money, the market is full of opportunities: When you are broke, every coin is rising, and FOMO emotions are high! But remember, 80% of the market is manipulated; do not easily enter; patience is the key to victory!
How can one sustain long-term survival in the cryptocurrency market? To survive and succeed in the market long-term,
You can follow these key strategies:
1. Risk management
Use spare money for investments, avoiding high leverage or loans.
Set stop-loss points; once the preset loss threshold is reached, sell decisively to avoid further losses.
2. Investment strategy
Diversified investment: Do not put all your funds into one project; instead, invest across different cryptocurrencies and projects to reduce risk. Long-term holding: For quality projects, hold for a longer period, utilize compounding effects for wealth growth. Sell at the right time: If significant negative news appears at market highs, it may be a good time to sell.
3. Information acquisition and processing
Establish your own information sources, such as CoinMarketCap+, Defllama+, etc., to obtain accurate market data.
Learn to discern the truth from false information to avoid being misled by inaccurate information.
4. Psychological adjustment
Stay calm and do not be influenced by short-term market fluctuations.
Set reasonable expectations to avoid overtrading and frequent operations.
5. Continuous learning
Regularly study blockchain technology and knowledge related to digital currencies, keep pace with industry developments, participate in community discussions, exchange experiences with other investors, and expand your horizons.
6. Balance life and investment
Ensure that investment activities do not interfere with daily life and health.
Maintaining physical and mental health helps better cope with challenges during the investment process.
Trading in cryptocurrency is interconnected with life; when you understand life, you will also understand the cryptocurrency market. The path to success is simple, and unity of knowledge and action is the key to thriving and remaining undefeated!