Having been in the cryptocurrency space for many years, I've seen too many people get liquidated in contracts and lose everything, as well as countless others being repeatedly harvested by market manipulators, suffering greatly. But I firmly believe that Bitcoin spot trading is the real money printer in the cryptocurrency world. In a bull market, it can multiply your assets tenfold; in a bear market, it remains as solid as a rock.
Looking back to 2017, I bought Bitcoin with 5000 yuan in spot and held it until selling at the high in 2021, resulting in a direct 40-fold increase. At the bottom of the bear market in 2023, I decisively bought in again, and now my holdings have nearly tripled. This is the charm of Bitcoin spot trading!
1. The absolute advantage of Bitcoin spot trading
- No liquidation risk: Regardless of how much the market crashes, your assets will not go to zero, firmly holding your wealth baseline.
- Suitable for long-term holding: Bitcoin halves every four years, increasing its scarcity, and from a long-term perspective, the price trend is consistently upward.
- Worry-free and effortless: No need to watch the market every day, avoiding making wrong trading decisions due to emotional fluctuations.
However, investing in spot is not about mindlessly buying to make money. 90% of people falter on this path, simply because they've fallen into these three major traps:
- Buying at high points: Being swayed by market emotions, FOMO leads to buying at high points, resulting in being trapped.
- Unable to hold onto coins: Eager to sell at the slightest profit, perfectly missing out on tenfold or even higher market movements.
- Randomly changing positions: Giving up on Bitcoin and switching to buying various worthless altcoins, ultimately achieving nothing.
2. A comprehensive strategy for steady profit from spot trading
Step 1: Time your entry accurately, only entering at the 'golden pit'
The price cycles of Bitcoin are evident; a major bull market follows each halving every four years, while the bottom of a bear market typically occurs one year before halving.
- Best buying opportunity (applicable for 2025):
- Bitcoin falls to key support levels, such as the 200-week moving average, or a 50% retracement from the previous bull market peak.
- The market is in extreme fear, with the fear and greed index below 20, and there are many complaints on Twitter.
- The supply of Bitcoin on exchanges continues to decrease, indicating that large holders are accumulating.
- Absolutely avoid buying when:
- Bitcoin has just surged over 30%, and a short-term pullback is highly probable.
- Everyone is shouting 'the bull is back,' with FOMO emotions at their peak.
- The supply of Bitcoin on exchanges suddenly increases, which may be a sign of a market dump.
Step 2: Scientific buying, using the pyramid building method to lower costs
Seeing Bitcoin rise and going all in can easily lead to buying at short-term highs. The correct approach is to buy in batches, ensuring the average holding price remains low.
For example, with a capital of 2000 USDT, the pyramid buying strategy is as follows:
- First position: 20% position (400 USDT), buying when Bitcoin falls to key support levels.
- Additional position: Increase by 30% (600 USDT) for every 10% drop to further lower costs.
- Reserve funds: The remaining 50% of funds should be kept for extreme drops, such as entering during a black swan event.
For example, when Bitcoin is priced at 30000 USDT, build the first position with 400 USDT; when it drops to 27000 USDT, add 600 USDT; when it drops to 24000 USDT, add another 600 USDT; in an extreme case, if it drops to 20000 USDT, use the last 400 USDT to go all in. The final average holding price is about 25000 USDT, reducing the cost by 20% compared to going all in at once!
Step 3: Hold patiently, ignore short-term fluctuations, and wait for the big bull market
The key to Bitcoin's wealth is just one word: accumulate.
- Holding discipline:
- The goal is to hold at least until the peak of the 2025 bull market, where the price is expected to exceed 100000 USDT.
- Ignore pullbacks within 30%, as washouts during a bull market are normal.
- Absolutely do not engage in contracts or short-term trading to avoid being shaken out.
- Methods to avoid impulsive selling:
- Use a cold wallet for storage, withdrawing to a hardware wallet to reduce trading impulses.
- Set price alerts and avoid checking the market until the target price is reached.
- Join a long-term holding community to persist with like-minded HODLers.
Step 4: Decisively sell, accurately capture signals for topping out in the bull market
There are several key signals for the peak of the Bitcoin bull market:
- The market is in extreme greed, with the fear and greed index above 90.
- The supply of Bitcoin on exchanges suddenly increases, indicating large holders are starting to sell.
- Bitcoin dominance (market cap ratio) decreases, with funds flowing into altcoins, signaling the end of the bull market.
- People around you who are new to the space start discussing Bitcoin, and retail investors rush in, indicating a market crash is near.
Selling strategy:
- Take partial profits at 80000 USDT, 100000 USDT, and 120000 USDT, selling in three batches.
- Finally, keep 10% of your position to aim for higher points to prevent selling too early.
- Withdraw to stablecoins/USDT to avoid profit loss due to a sudden drop.
Step 5: Cycle operations, waiting for the next bear market to buy at the bottom
The wealth of Bitcoin is cyclical; after the bull market ends in 2025, the market will enter a bear phase from 2026 to 2027. At that time, repeat this method to continue buying low.
Our ultimate goal is:
- To multiply assets by more than ten times in each cycle.
- To use profits to improve life, rather than going all in and gambling.
- Ultimately achieve financial freedom.
Summary: The most stable profit-making process for Bitcoin spot trading
1. Timing: Only buy at the bottom of bear markets.
2. Buying: Use pyramid building to lower costs.
3. Holding: Ignore fluctuations and hold through the bull market.
4. Selling: Cash out in batches at the peak of the bull market.
5. Cycle: Wait for the next bear market to buy at the bottom.
Strictly implement this strategy, and by 2025, your assets will at least multiply by 5 to 10 times!
I am an old hand in the cryptocurrency space, follow me, @加密玖 to both give fish and teach fishing—leading you to multiply your investments in the bull market with small amounts, becoming the sharpest knife in the market!