I have been struggling in the cryptocurrency world for 10 years, experiencing three bull and bear markets, from an initial capital of 8000 to now achieving financial freedom. I have gone through all the necessary experiences and have stepped into every pitfall, but the only thing that matters is to cultivate myself and form a stable profit system.
My cryptocurrency trading career can be divided into several stages.
One: Entering the crypto circle with 8000, catching the bull market, and making over 10 million.
Two: From over 10 million to a debt of 8 million.
Three: From borrowing 200,000 to entering the market to 20 million.
Four: From over 20 million to now over 2 little suns.
Five: Currently ongoing, waiting for the next bull market to arrive with 10 little suns.
The article is too long; if you read it patiently, I believe it will be very helpful for your investment journey in the crypto world!
You might doubt what I say, but it doesn’t matter; the reason I joined Zhihu is simple: sharing my experiences can truly help some people and families! It’s worth it! It’s okay to criticize; as long as you understand how to make money in the crypto world.
Let me detail the insights and pure insights I've gained from these phases!
Today I bring you valuable insights; the words are short but hit the heart. After reading, you will have an epiphany!
1. Just entering the circle, don’t rush to make money; learn quickly. If you don’t even understand that exchanges can crash, how assets cross chains, and the concept of blockchain, how could you possibly make money?
2. Step into more pitfalls, practice diligently, and ask less. In the crypto world, 100 people have 101 opinions; speculators think investors are fools, and speculators believe investors are parasites. A says this project is a great innovation, B thinks it’s just a conceptual machine, C says they are both scammers... Who to trust? Trust no one, while scammers are everywhere, standing at every traffic junction, providing enticing services to newcomers. And 99% of people in the crypto world are not novices; who to trust?
3. The community is very important. In my view, 99% of group chats are at the same level as the old men in the park at the village entrance, focusing on idle chatter, occasionally sharing profit screenshots, which isn’t very meaningful. A quality community can at least show you the reality of the crypto world; what do you think?
4. Investment is your own business. How to understand this? It means that investment ultimately relies on yourself. Others' analyses and thoughts are only for reference; more independent research is needed to form your own investment framework. Only with a framework can you have your own opinions. Don’t care what others say; their level may not be as good as yours.
5. Contracts, short-term trading, holding coins, yield farming, NFT+, which one is better? The best is what suits you. Currently, our group strategy is mainly to hold coins; if you have enough energy, I can take you to yield farm. Some say contracts, short-term, NFTs; I’ll tell you the truth, they are all looking for you to take the risk.
6. How to find a hundredfold coin? If you don’t even understand the basic concepts and don’t know what the crypto circle is about, and keep asking around, this mindset will never find a hundredfold coin; you might as well be shot. I want to emphasize that making money in the crypto circle isn’t that easy; the easy ones don’t make money. If someone claims to have bought a hundredfold coin or a contract with a certain multiple, it’s likely a scam.
7. Patience is the foundation of making money. You may need to study for a long time and be scammed countless times to understand the situation in the crypto world. It’s okay; cherish every experience of being scammed; these are lessons on the investment journey.
8. Follow the basic rules of the crypto world. If you lose, you must admit it; if you are scammed, you must accept it. Experts often do not complain, while the weak like to blame others for cutting them. When you can no longer set the rules, stop whining.
9. Learn while practicing. Some people say, 'I have learned so many concepts and understand them, but they are still very abstract.' That’s not right; you should learn and practice simultaneously, experience various projects, and of course, output is the best practice. You can also create content to attract friends and exchange ideas.
10. As long as you put in effort, you can always become a big shot. I say this, and many people may disagree; isn’t this just nonsense? How many people are still lambs? Remember, others being lambs has nothing to do with you; what you need to focus on is improving yourself. There’s nothing difficult in this world, only those who are dedicated are to be feared. If you want to argue, refer to point 2.
Trading cryptocurrency from great loss to great wealth!
One, regarding returns.
Assuming you have 1 million, after earning 100%, your assets will reach 2 million. If you then lose 50%, it means your assets will return to 1 million. Clearly, losing 50% is much easier than earning 100%.
Two: Regarding price fluctuations.
If you have 1 million, and on the first day it rises by 10%, your assets will reach 1.1 million, then on the next day it falls by 10%, your assets will remain at 990,000. Conversely, if it falls by 10% on the first day and then rises by 10% on the second, your assets will still be 990,000.
Three, regarding volatility.
If you have 1 million, and earn 40% in the first year, lose 20% in the second, earn 40% in the third, lose 20% in the fourth, earn 40% in the fifth, and lose 20% in the sixth, your remaining assets will be 1.405 million, with a six-year annual yield of only 5.83%, even lower than the face interest rate of a five-year treasury bond.
Four, regarding 1% daily.
Assuming you have 1 million, if you can earn 1% every day and then exit, after 250 days, your assets could reach 12.032 million, and after 500 days, your assets would reach 145 million.
Five, regarding an annual 200%
Assuming you have 1 million, if you achieve a return of 200% for five consecutive years, then after five years your assets will reach 243 million, but such high returns are very difficult to sustain.
Six, regarding a tenfold increase in ten years.
If you have 1 million, and hope to reach 10 million in ten years, 1 billion in twenty years, and 10 billion in thirty years, then you need to achieve an annual return of 25.89%.
Seven, regarding averaging down.
Assuming you invest 10,000 in a certain coin at 10 yuan, and it has now fallen to 5 yuan, buying another 10,000 at this point means your average cost can be reduced to 6.67 yuan, rather than the 7.5 yuan you might expect.
Eight, regarding holding costs
If you have 1 million and invest in a certain cryptocurrency with a 10% profit, when you decide to sell, you can leave 100,000 yuan worth of chips. Then your holding cost will be zero, and you can hold long-term without pressure. If you are extremely optimistic about this cryptocurrency and leave 200,000 yuan worth of chips, you will find your profit increases from 10% to 100%. But don’t be complacent, because if this cryptocurrency drops by 50% later, you may still incur losses.
Nine, regarding asset allocation.
Assuming you have 1 million, with a risk-free asset A (annual return of 5%) and a risky asset B (return -20%-40%), you can invest 800,000 in risk-free asset A and 200,000 in risky asset B. Then your worst-case annual return would be zero, and your best return could be 12%. This is the prototype of CPPI technology applied to capital preservation funds.
I have been trading cryptocurrencies for 10 years, and I have been profitable for the last 7 years! I have summarized 10 iron rules, each one is precious!
On the road of investing in the crypto world, whether you are a novice or a veteran, you need to have your own principles! Every investment is an experience; grasp every opportunity for growth. As the saying goes, 'I reflect on myself three times a day.' Only by learning to summarize and cultivate your own principles can you avoid getting lost on the investment path, allowing you to go further and stand taller!
A good teacher can guide you through confusion, find the right path, and clarify direction; success is just around the corner! As an investor in the market, we must first learn to listen to the market's voice and attentively pay attention. This lays the foundation for successful trading. At the same time, we must perceive opportunities that most people cannot perceive and uncover potential trading opportunities.
Investment taboos: blindly following the herd effect will surely lead to destruction!
In fact, profit is not the ultimate goal of the trader; it is a journey. There are no investors who only win and never lose. Try to focus your energy on pursuing trading skills and enjoying the fun of the trading process, rather than blindly pursuing profit results, which can also be a good choice.
It is very important to stick to your own views, and occasionally it doesn't hurt to take a contrarian approach. Financial investment training points out that when market prices fluctuate, it is influenced by many complex factors. When investors lose their self-judgment, they often choose to follow the crowd, even creating a herd effect, leading to destruction.
Trading plan: Once formulated, strictly execute it! Don’t let greed cloud your judgment!
At critical moments, we should remain calm and objectively enjoy the pleasure of being sober while everyone else is drunk. During the trading process, some investors lament the difficulty of making decisions. In fact, whether supporting positions or not, having patience is the most challenging. The worst thing is to not strictly stop losses when they should be, getting carried away by greed.
To trade, you must have firm beliefs and sufficient confidence in the market; this is the only guarantee for survival in the cryptocurrency market. After formulating an investment plan, you must strictly execute it and not let momentary fluctuations disrupt your plan. Adjusting your mindset is crucial; a journey of a thousand miles begins with a single step. As long as you handle every aspect well, try to have less regret and more confidence.
Reflecting on my trading experience over the past decade, I believe there are several crucial points for long-term profitability:
1. Control your desires; don’t listen to others' stories blindly. Choose a reputable platform and reliable teachers; a good mindset is more important than everything.
2. Trend trading: only trade in the right markets and cycles. If you don't have a 70% certainty, it’s better not to trade.
3. Reasonably control your position; only by doing so can you have a chance for stable profits, otherwise, even if your account has been profitable before, it will eventually lead to total failure.
4. Always set stop losses when entering the market. In the crypto world, generally 50-100 points is advisable. Not setting a stop loss means that with every trade you make, you could lead to account death.
As a novice: respect the market, follow the market, and adapt to the market!
Regarding the relationship between investors and the market, I believe that investors are always subordinate to the market. Every investor is part of the market, not the entirety of it; they follow the market and cannot dominate it. What we need to do is maintain a sense of reverence for the market at all times.
Market trends can never satisfy everyone, and my analysis is the same. You either control the market or the market controls you; your mindset determines whether you are the rider or the mount. The market environment will not change; the solution lies in changing your mindset. If you cannot control the market during trading, you must control your emotions. If you can still act impulsively in a weak consolidation market, it shows you still have passion for trading; if you are always impulsive, it means you still don’t understand trading.
Sometimes money in this market comes easily, but it goes even easier. You don’t need to trace the origins of profits, but for losses, you must understand the reasons. If you encounter multiple losses on the same issue, then I think you have found the method to profit. Feeling anxious and fearful without anyone to pity you, risking everything could lead to total loss; only by being steady and cautious can you secure your victory.
The same market conditions yield different guidance and different life outcomes. As the saying goes, follow the right order to win a trade, follow the right people to win a lifetime. The tumultuous bull and bear transitions in China's capital market have created a group of people. In them, we see sharp instincts, countless glories and hardships, and after multiple parabolic movements in life, they finally transform from grass roots into significant capital players. Remember, I was born in poverty, but I must not die in poverty.
Full-time cryptocurrency trading has enabled me to earn a stable income of over 10,000 USD daily: (Intraday monitoring skills and points to note) One-click collection! Once learned, making money in the crypto world is as easy as breathing!
1. Market sentiment and emotions can be analyzed from the changes in trading volume and open interest.
When volume increases without a price drop, it might stop falling. When volume increases but the price can’t rise, it may indicate that the short term has reached its peak.
The volume requirements during the rise and fall are different.
During the rise: a continuous and even increase in volume is required. An even volume increase in the 3-minute candlestick chart indicates that the bullish trend will continue; if there is a sharp decrease in volume...
Or if a very large volume appears, the rise may come to an end.
During the decline: as long as it breaks some key positions with increased volume, the downtrend will continue.
When the price rises to a certain level and stops increasing, but your holdings keep increasing, with buy and sell orders at progressively lower prices, it indicates that the price might fall.
Increasing positions while stagnating is an excellent opportunity to short, or increasing positions while declining makes it easy to rebound.
2. Key points: Draw pressure, support, trend lines, etc., on the chart. When prices reach or break through these key points, act quickly.
I use the golden ratio to predict resistance and support.
3. Trading rules: only one type of asset can be traded within a certain time frame.
Continuously track the varieties you are trading until they no longer have speculative value before giving up.
4. Observe the market window: One-minute window—this is for preparing to grasp the entry and exit timing.
3-minute window—this is used to monitor the situation after entering the market.
30-minute or 60-minute window—used to monitor intraday trend changes at any time.
Let me remind everyone here: there are abundant trading opportunities, but if you get stopped out, don’t rush to recover immediately.
If you’ve stopped out, that trade is done; the next trade is a new one, and how much you earn is how much you earn—don’t define the next trade’s target by previous operations; that will lead to losses each time.
Playing around in the crypto world is essentially a contest between retail investors and whales. If you don’t have cutting-edge news or first-hand information, you can only be cut! If you want to layout together and harvest the whales, you can come find me! (See profile)
There is a saying I strongly agree with: the boundary of knowledge determines the boundary of wealth; one can only earn wealth within their knowledge boundary.
Having a good mindset in trading is essential; don’t let your blood pressure rise during a big drop, and don’t get carried away during a big rise. Securing your profits is crucial.
For those without many resources, being down-to-earth is an unbreakable way of survival.
Giving a rose to others leaves a lingering fragrance in your hand. Thank you for your likes, follows, and shares! Wishing everyone financial freedom by 2025!