The Dumbest Strategy in the Crypto World
The Dumbest Way to Make Money in the Crypto World: The smarter you are, the faster you die in the crypto market. This is a lesson I learned with real money.
Three years ago, I was a 'technical analyst' glued to my computer screen until the early hours, studying various candlestick patterns, MACD golden crosses and dead crosses, RSI overbought and oversold... What was the result? Gains and losses, account balance treading water, and I even had a few liquidation events.
Until one day, I met an old hand in the market who told me: Trading coins is best kept simple. Then, he taught me the dumbest method - the 343 incremental building method. I scoffed at the time: This is too simple! Only a fool would use it! Now, I’m going to tell you this method in full.
1. The 'Dumb Method' Most Hated by Traders: 343 Incremental Building Method The core of this method can be summed up in one sentence: Do not speculate on price movements; buy according to the plan.
Step One: 30% Initial Position (Trial Purchase) Choose a coin (such as mainstream coins like BTC, ETH) and buy 30% of your total funds. Key point: Do not fully invest at once!
Step Two: 40% Averaging Down (Lower Cost) If the price rises: Don’t rush in; wait for a pullback to add 40%. If it falls: For every 10% drop, invest 10% of your funds until you have added 40%. Core logic: The more it drops, the lower your holding cost, the greater your profit upon rebound.
Step Three: 30% Final Position (Add to Position After Confirming Trend) When the price starts to rebound and firmly holds above a key support level (like the 7-day moving average), then invest the final 30%.
Then, set a trailing stop-loss to let profits run. Why can this method make money?
1. Do not predict the market; just follow the trend.
2. Build positions incrementally to avoid being trapped all at once. 3. The more it drops, the lower the cost, leading to greater profits on the rebound.