Sharing of my experience in 7 years of cryptocurrency trading. After 7 years of persistence, I have realized a profit of 20 million yuan with a principal of 20,000 U. Below I will share my experience in cryptocurrency trading. Learning is earning.
1. Beware of bull market traps
Popular coins = high-risk areas
Coins that are crazy about FOMO in the bull market are often severely controlled and have huge bubbles.
→ Principle: The dealer pulls the market to attract retail investors to take over. Once the funds are withdrawn, the decline is far greater than the market.
→ Countermeasures: It is better to miss it than to chase the popular coins that have soared by more than 50%.
New coins are launched, which is the sickle
New coins strongly promoted by exchanges are often accompanied by the trilogy of "launch-surge-plunge".
→ Case: An IEO project of an exchange rose 10 times in 3 days and then halved, and 90% of retail investors were trapped.
→ Iron rule: Observe the new coin for 3 months before making a decision to avoid emotional operations.
2. See through the routines of copycats
Formula for harvesting copycat coins
"Violent wash → step-by-step pull-up → skin-changing harvesting" is the standard process.
→ Data: More than 80% of altcoins have a life cycle of <span year, and the return to zero rate exceeds 95%.
→ Solution: Only use 5% of the position to bet on altcoins, and stop profit in batches when you make a profit.
The strongest rebound ≠ the greatest potential
Most of the currencies that soar and plummet are speculative, such as Meme coins, which generally fall back by 80%+ after a short-term surge.
→ Truth: The volatility of high-quality projects is usually <span times the amplitude of the market.
3. Capture long-term opportunities
Time dilutes volatility
The annualized return of mainstream currencies such as BTC/ETH exceeds 200% in 10 years, but it needs to withstand a short-term retracement of 40%+.
→ Strategy: Fixed investment + cold wallet storage to avoid frequent operations.
Potential coins are hidden in unpopular areas
Before the launch of truly valuable projects, the trading volume is often sluggish, such as C98, which rose 27 times after 11 months of sideways trading at the bottom.
→ Mining skills: Pay attention to on-chain data such as GitHub code updates and institutional holdings.
Dark horse in the second half of the bull market
Mainstream Layer1/Layer2 projects (such as ATOM/NEAR) that were stagnant in the early stage often rise 3-5 times at the end of the bull market.
→ Key: Reserve 30% of funds to wait for the right opportunity.
IV. Top trading skills
Anti-human training
"Buy low and sell high" is the norm, and grid trading can be used to automatically deal with it: set to increase positions for every 10% drop and reduce positions for every 20% increase.
Shipping signal identification
After breaking through the previous high, the currency price fell rapidly by 15%+, and the trading volume continued to shrink → Immediately stop profit at 50%.
Sideways = accumulating momentum
Currencies that have experienced narrow fluctuations (amplitude <span for 3-6 months
