In the crypto world, people often eagerly ask me: 'With only 3000 yuan, how can I achieve 100 times wealth growth?'
If you naively think that by relying on compounding to earn 10% monthly, you can easily accumulate 1 million over time, I must pour cold water on you—wake up, this is the volatile crypto world, not a stable bank investment.
In the crypto world, what truly enables wealth reversal is never the so-called compounding interest. The decisive factors are cycles, liquidity, and price action.
The true driving force behind wealth leaps.
In the crypto world, achieving a significant leap in wealth does not rely on meticulously saving interest but on seizing exceptional opportunities that can yield three, five, or even ten times returns. It is essential to understand that the logic of compounding is hard to establish in this uncertain crypto market. Just one liquidation can render all previous efforts futile, turning them to ashes in an instant.
Follow the cycle: The foolproof way to make money in the crypto world.
As a global trading market, the crypto world has countless eyes closely watching the market, and competition is exceptionally fierce. To get a share of others' wallets, one must not rely on momentary impulses and reckless actions but should cleverly leverage the power of cycles.
Many people who are keen on contract trading focus intently on five-minute, fifteen-minute, or at most one-hour charts, frequently chasing highs and cutting losses, resulting in continuous stop-losses and dwindling funds.
In stark contrast, those who truly make a fortune in the crypto world understand how to extend their trading cycles. The larger the cycle, the more it filters out various distracting information in the market and accurately captures the main upward trends. It's like slow money making fast money; smart money earns emotional money, gaining profits in a more stable and long-term way.
Retail trading: The traps of impatience and shortsightedness.
Retail investors often fall into common pitfalls when trading in the crypto market. They tend to be overly impatient, blindly rushing into the market without understanding the market trend. Position management is often a mess, frequently going all-in with all funds. Moreover, they do not set stop-losses, and once the market moves against them, they can only watch their funds shrink until liquidation, regretting their decisions too late.
These retail investors only focus on a few dozen points of profit and loss, fixating on candlestick charts for trading. The truly wise approach is to broaden the perspective, focusing on market spaces of several hundred points. You don't need to be smarter or luckier than others; the key lies in utilizing a 'secret weapon' that most people overlook—the cycle volatility structure.
Taking BTC as an example, when the price is at 3000 dollars, the daily volatility is only a few dozen points. When the price rises to 10000 dollars, daily volatility can reach 200 points. At 30000 dollars, daily volatility exceeds 1000 points. Now, with the price at 58000 dollars, daily fluctuations start at 2500 points.
However, most people's liquidation price can only withstand a volatility of 300 points. In this case, attempting to use a 300-point risk tolerance to gamble against a 2500-point fluctuation is almost a guaranteed liquidation. Therefore, often it is not that you are not working hard, but rather that your trading perspective is flawed.
Cycle: The logical cornerstone of profitability.
The cycle is not an abstract term; it is the logical framework for your profits in the crypto world. To achieve stable profits in the crypto market, you need to do the following:
Control risk values: Abandon unrealistic doubling fantasies, keep risks within a reasonable range, and ensure the safety of funds.
Layout of the long cycle: Do not be misled by short-term stimuli. Learn to analyze and layout from a long-cycle perspective to grasp the overall market trend.
Make good use of market volatility: Let the market fluctuations work for you, rather than being led by market volatility, falling into endless anxiety and torment.
In the crypto world, bull markets are not present every day. Small cycles are the norm in the market, while large cycles are rare opportunities. You must learn to lay in ambush during large cycles and patiently wait for opportunities, while also being flexible in small cycles to ensure the survival and stability of your funds.
Truly smart individuals never rely on predicting the market to make money. They leverage a profound understanding of the market, precise grasp of structure, and strict adherence to discipline, converting 'time' and 'cycles' into powerful tools, thereby moving steadily forward in the waves of the crypto world and achieving sustained wealth growth.
