In the tempting and risky world of cryptocurrency, many people impatiently ask me: 'I only have 3000 yuan, how can I achieve a 100-fold increase in wealth?'
If you naively think that you can easily accumulate 1 million by relying on compound interest to earn 10% every month, then I need to pour a cold bucket of water on you to wake you up - this is a rapidly changing and unpredictable cryptocurrency market, not a stable bank investment.
In the cryptocurrency market, what truly enables you to achieve a reversal of wealth is not relying on the seemingly beautiful 'fairy tale' of compound interest. The decisive factors are the fluctuations of cycles, changes in liquidity, and the characteristics of price behavior.
The true engine of wealth leap.
In the cryptocurrency space, achieving a huge leap in wealth is not about meticulously accumulating interest, but rather about accurately capturing excellent market conditions that yield threefold, fivefold, or even tenfold returns. You must understand that in the uncertain cryptocurrency market, the logic of compound interest does not hold. Once you face a liquidation, all previous efforts will instantly turn to nothing, and everything will be lost.
Follow the cycle: The golden rule for profit in the cryptocurrency market.
As a global trading market, countless eyes are constantly watching the market conditions in the cryptocurrency space, and the level of competition is beyond imagination. If you want to take a slice from others' pockets, you cannot act solely on impulse and recklessness; instead, you must cleverly leverage the power of cycles.
Many people who are keen on contract trading fixate on five-minute, fifteen-minute, or at most one-hour charts, frequently chasing highs and lows. The result? They often trigger stop-losses repeatedly, leading to diminishing funds until they lose everything.
In stark contrast are those who truly make a fortune in the cryptocurrency space; they understand how to extend their trading cycles. The larger the cycle, the more it filters out various distractions in the market, enabling accurate capture of major upward trends. It’s like making money slowly to earn quickly, smart money earning from emotional money, obtaining returns in a more stable and long-term manner.
Retail trading: The fatal trap of impatience and shortsightedness.
Retail investors often fall into common pitfalls when trading in the cryptocurrency space. They tend to be too impatient, plunging into the market blindly before seeing the market trend clearly. Position management is often a mess, frequently going all-in with all funds at stake. Moreover, they do not set stop-losses, and once the market trend turns unfavorable, they can only watch their funds shrink until liquidation occurs, ultimately regretting it too late.
These retail investors only focus on gains and losses of a few dozen points, fixating on candlestick charts for trading. The truly wise approach is to broaden your perspective and focus on the market space of hundreds of points. You don’t need to be smarter than others or luckier; the key is to utilize a 'secret weapon' that most people overlook - the cycle fluctuation structure.
Take Bitcoin (BTC) as an example. When the price is at $3000, the daily fluctuation is only a few dozen points. When the price rises to $10000, the daily fluctuation can reach 200 points. At $30000, the daily fluctuation exceeds 1000 points. Now, with the price at $58000, the daily fluctuation starts from 2500 points.
However, most people's liquidation price can only withstand a fluctuation of 300 points. In this situation, if you attempt to gamble with a risk tolerance of 300 points against a fluctuation of 2500 points, a liquidation is almost certain. Therefore, it’s often not that you don’t work hard; it’s that your trading perspective is skewed.
Cycle: A solid logical foundation for profit.
The cycle is not an abstract concept; it is the logical framework for your profits in the cryptocurrency market. To achieve stable profits in this arena, you need to do the following:
Strict risk control.
Abandon unrealistic doubling fantasies, control risks within a reasonable range, and ensure the safety of your funds. Don't always think about making a leap; steady progress is the long-term strategy.
Planning for the big cycle.
Don’t let short-term excitement cloud your judgment; learn to analyze and plan from a big cycle perspective to grasp the overall market trend. The big cycle is like a course in the ocean; only by finding the right direction can you sail toward the shores of wealth.
Make good use of market fluctuations.
Let the market fluctuations work for you, rather than being led by the nose by the market's volatility, falling into endless anxiety and torment. Market fluctuations are like tides; they rise and fall, and we must learn to act in accordance with the prevailing conditions.
In the cryptocurrency market, bull markets are not always present; small cycles are the norm while large cycles are rare opportunities. You must learn to lay low in the big cycles and patiently wait for opportunities to arise; at the same time, be flexible in small cycles to ensure the survival and stability of your funds.
Truly smart individuals never rely on market predictions to make money. They leverage their deep understanding of the market, precise grasp of structures, and strict adherence to discipline to transform 'time' and 'cycles' into effective tools, thereby steadily advancing in the cryptocurrency waves and achieving continuous wealth growth.
