We should focus on strategy, proceed steadily, and avoid thinking about 'going all-in' right from the start. This can reduce risks and enhance returns. The following is an optimized operational thought process:
Step One: Diversify capital, test contracts.
1. Capital allocation.
Divide 3000 into 4 parts, and take out one part (about 100 USDT) for trading contracts, mainly choosing popular cryptocurrencies for trading.
2. Strictly enforce take-profit and stop-loss.
• Set your own take-profit and stop-loss lines; for example, if you make 100 USDT and grow it to 200 USDT, exit; if it grows from 200 USDT to 400 USDT, exit; and from 400 USDT to 800 USDT, exit.
• When facing losses, decisively cut losses and never hold on stubbornly.
3. Take profits when available.
Conduct a maximum of three trades; when the principal grows to around 1100 USDT, stabilize and begin planning the next steps. Luck plays a significant role in the crypto world; long-term games are less effective than accumulating small victories.
Step Two: In-depth market research.
1. Project screening.
Spend more time researching the market, selecting projects with strong technical capabilities, reliable teams, and clear prospects. Blindly following trends can lead to losses; you must establish your judgment system.
2. Diversified investment.
Diversify funds into multiple quality projects to reduce the risk of failure from a single project.
3. Long-term holding.
• After selecting quality projects, hold firmly; the cryptocurrency market is volatile, and seeking quick profits can lead to missed opportunities.
• Believe in the power of value growth and patiently wait for the market to explode.
Step Three: Risk control and strategy adjustment.
1. Use leverage cautiously.
Leverage trading is extremely risky; if you're unfamiliar with the market, avoid using it. If you do, set strict stop-loss points and never let your principal return to the starting point.
2. Technical analysis and proactive strikes.
Learn candlestick charts and trading strategies, combining market dynamics to capture opportunities and avoid blind trading.
3. Dynamically adjust strategies.
The cryptocurrency world changes rapidly; continuous learning, keeping up with market hotspots, and timely adjustments to investment direction are necessary to avoid falling into outdated projects.
Step Four: Mindset and discipline.
1. Risk management.
• Set profit goals and loss limits; adhere to discipline to avoid impulsive actions that lead to capital drawdown.
• Keep a portion of liquid funds to deal with unexpected situations or seize potential opportunities.
2. Rationality and patience.
• Stay calm and rationally face market fluctuations; do not let emotions drive your actions.
• Patience to wait for profit points; avoid frequent short-term operations that consume excessive funds and energy.
These are the seven iron rules I earned through blood and tears.
I finally realized—the simplest methods are often the most profitable. Today, I'll show you my trading diary:
Night battle rules.
The daytime market is like a drunk person dancing; messages are chaotic, and traders draw lines. I only open the trading software after 21:00; by then, the candlesticks are clearer, and the direction is evident.
2. Withdrawals to avoid overexposure.
Earn 1000 USDT? First withdraw 300 to your bank account. I've seen too many people go from earning three times their investment to zero, just because of the phrase 'let's wait a bit longer.'
3. The three key indicators.
MACD golden cross and death cross.
RSI overbought and oversold.
The direction of Bollinger Bands opening.
Three indicators must show two resonances before taking action; this is a lesson bought with 200,000 in tuition.
4. The art of trailing stop loss.
When monitoring the market, move your stop-loss up by 3% every time the price rises by 5%, and set a hard stop-loss of 3% before sleeping. Last year, during that 312 crash, my account remained unscathed thanks to this tactic.
5. Friday withdrawal day.
Every Friday, insist on withdrawing 30% profit; the rest is battlefield capital. After eight years, the interest alone is enough to buy a house.
6. The time-space rule of candlesticks.
For short-term trading, look at the 1-hour chart: consider only after two consecutive bullish candles.
Look at the sideways market for 4 hours: ambush near support levels.
Remember: the market is three-dimensional; do not view candlesticks with a two-dimensional perspective.
7. Four blood oaths.
❗ Leverage exceeding 10 times = suicide.
❗ Touching altcoins = giving money to institutional traders.
❗ More than 3 trades in a day = signs of losing control.
❗ Borrowing money to trade cryptocurrencies = eternal damnation.
One: Do not borrow money to trade cryptocurrencies; do not borrow money to trade cryptocurrencies; do not borrow money to trade cryptocurrencies.
If you are borrowing money to trade cryptocurrencies, it indicates you have a gambling mentality and will end up with nothing.
Two, do not go all-in with leverage, do not go all-in with leverage, do not go all-in with leverage.
Leverage + all-in, gambling mentality, gamble until you have nothing left.
Three, do not trade cryptocurrencies on small platforms; most small platforms are internal markets.
Internal markets only pull candlesticks; your money does not enter the market but enters the account of that shell company.
The rules of the game itself dictate that most outcomes of leverage trading end in zero; the capital behind loves to watch a group of retail investors go all-in because in the next moment, the money will fall into their pockets!
What if? What if all-in wins?
This market is a battle of wits between retail investors and institutional traders, where principles combined with patience allow one to feast on the profits, which are essentially from other retail investors; it's inherently an unfair game.
What if going all-in wins? Even more terrifying, you will think you are a god; after one time, there will be countless more. The money you win will eventually go back in.
As for those myths of getting rich, just listen to them; as a certain expert once said, this world is essentially a makeshift stage; where do so many myths come from!
When the price suddenly drops while moving sideways, it must be a small drop; after a drop, there must be a rise. When the price suddenly rises while moving sideways, it must be a small rise; after a rise, there must be a drop.
A sideways market is a state of bottom accumulation. There's a question I haven't discussed before: why do institutional traders prefer accumulating chips in a sideways state?
When institutional traders start accumulating at the bottom, due to continuous buying, market purchasing power increases, and the chips correspondingly decrease, resulting in a price rise.
Therefore, when institutional traders enter the market, prices no longer create new lows; this statement is crucial.
So why choose the sideways model for accumulation?
In a sideways market, price fluctuations are small; retail investors will exit after a long time without profits, allowing for quiet accumulation of cheap chips at the bottom.
Even if you tell me these chips are very cheap and will yield no returns for a year, can you endure it? Very few retail investors can.
The market has some short-term traders or speculative funds; to prevent giving them opportunities for speculation, a sideways market is the strongest defensive formation.
In a sideways market, without significant fluctuations, it is difficult to attract retail investors' attention; often, by the time you notice, the price has already hit the ceiling.
These are the advantages of a sideways market. After a period of consolidation, institutional traders acquire a certain amount of chips, and the sideways pattern will begin to shift into a volatile phase—bouncing up and down. The goal is to shake off those weak hands. Once those shaky chips are collected, the institutional traders’ goals will be met, and the next step will be an upward trend.
So after a sideways market comes volatility. If it moves downward, it cannot be a significant drop; if the price breaks through the institutional cost price, it would be a major incident. So when it suddenly drops while moving sideways, it must be a small drop, with the purpose of shaking off weak hands.
And vice versa.
If the market is sideways for a while and then suddenly rises, it indicates a signal of volatility washout. If it rises directly without volatility, it doesn't make sense (unless it's speculative funds that strike quickly and leave). The chips are held by each holder; relying on the daily natural flow is not enough. Only with volatility can the market be stirred, allowing for faster chip turnover to achieve rapid accumulation.
Even when going up, it must also oscillate; on one hand, to shake off the following trend, and on the other, to sell high and buy low.
Of course, some institutional traders also adopt a model of first volatility followed by a sideways market; the goal is the same.
A sideways market is for silently collecting chips; volatility is for further collecting weak hands’ chips.
In fact, sideways and volatility are mutually inclusive; systematic fluctuations within a range can also be considered sideways. There is no absolute sideways—it's impossible for candlesticks to be perfectly horizontal, so the concept of sideways is broad.
This is a piece of advice for newcomers in the cryptocurrency world (it should be etched in your mind).
-: Do not trade with debt; trading with debt means overextending yourself, which is the most important.
Two: Interact more with cryptocurrency veterans.
Three: You can spend a little money to join some paid groups; choose whom to follow based on your judgment of the blogger's reliability, ensuring they can teach you something valuable.
Four: Do not buy hot coins.
When a coin is at its peak popularity, or when the market is crazily speculating on a coin, it is usually nearing its end. At this point, if you already held the coin, you might consider exiting. If you do not hold that coin, it is best not to enter, as there is a 90% chance you are just picking up the scraps.
Five: Don't trade on small exchanges; they always come with risks of running away or disconnecting, and all your funds inside will become inaccessible.
Six: Understand what low-quality shitcoins are.
Low-quality coins are bets on the blockchain, and due to their low market capitalization, their prices fluctuate greatly, making it easy to multiply several times or even hundreds of times, but the risks are equally high.
An altcoin is a derivative coin similar to Bitcoin and Ethereum; different altcoins have different backgrounds and trends!
Mainstream coins refer to Bitcoin, Ethereum, and other public chain coins like Solana.
Seven: Understand what is the primary and secondary market.
Coins that you can buy on all exchanges are considered secondary market trades.
The primary market is what we call on-chain trading, purchased on decentralized exchanges or WEB3 wallets. I do not recommend beginners to engage in the primary market as it is very easy to be scammed into buying scam tokens.
Eight: Understand what left-side trading and right-side trading are.
Left-side trading: Buying below the price and selling above when the market is unclear, mainly using limit orders. For example, bottom-fishing during a decline, believing this position will stop the drop, attempting to catch the bottom. This method carries relatively high risks.
Right-side trading: Wait for the market to show a direction, for example, when the price starts to rebound or breaks key levels, then enter the market. This is chasing trends, which is safer but may not capture the initial profit.
Nine: You should follow bloggers who share experiences rather than those who brainwash or promote profits.
Ten: Do not trust anyone who approaches you claiming they can make you money!
Eleven: Continuous learning is essential; one cannot earn money beyond their understanding. Even if you make a lot of money at first, if your understanding doesn't keep up, you'll quickly lose it, and it could lead to significant losses. Keep learning to improve your understanding!
Trading cryptocurrencies is a high-risk investment; never fantasize about getting rich overnight. Learning to survive in the market is key.
Many beginners rush in when they see others making money, often getting harshly punished by the market. If you're completely clueless, this guide can help you avoid detours.
Step One: Choosing the right trading platform is fundamental.
Trading platforms are like the 'tools' for trading; choosing the right platform is critical. Well-known global exchanges include Binance, Huobi, OKX, etc.
When downloading software, always go to the official website; don't trust Baidu ads or links recommended in groups, as they are likely phishing sites.
After registration, you must complete real-name verification (KYC) to trade normally. Remember, never enter your account password on unknown apps or websites to avoid scams.
Step Two: Understand basic concepts to get started.
Before entering the market, first understand these basic knowledge:
Bitcoin (BTC): The benchmark of the cryptocurrency market, akin to digital gold, whose price fluctuations affect the entire market.
Ethereum (ETH): The leading smart contract platform, supporting the development of DeFi, NFTs, and more.
Altcoins: Other cryptocurrencies besides Bitcoin and Ethereum, such as SOL, BNB, etc.
Stablecoins: Cryptocurrencies pegged to the US dollar, like USDT, USDC, primarily used for trading and hedging.
Bull and bear markets: The cryptocurrency world has distinct cycles; bull markets are easier to profit from, while bear markets are suitable for positioning.
Recommended learning channels:
Binance Academy: Systematic study of basic knowledge.
Social platforms: Follow industry leaders like @cz_binance and @VitalikButerin on X.
Video platforms: Channels of analysts like Coin Bureau, Miles Deutscher on YouTube.
Discussion groups: Exchange groups on Zhihu and Telegram, but learn to discern the truth of information.
Step Three: Practical entry should be steady and methodical.
The safest strategy for beginners: dollar-cost averaging into BTC/ETH.
When just entering the market, do not think about getting rich overnight. It is advisable to adopt a 'foolproof dollar-cost averaging' strategy: regularly set aside a fixed amount each month, say 500 yuan, to buy BTC or ETH, regardless of price fluctuations. Stick to it for 1-2 years. The choice of these two coins is because:
BTC: The core asset of the market; historical data shows that holding for over four years generally yields profit.
ETH: The leader in smart contracts, an important pillar in the Web3 ecosystem.
Spot vs. contracts: Beginners should avoid contracts.
Spot trading.
Use stablecoins to buy cryptocurrencies directly; suitable for long-term holding or swing trading, with lower risks.
Contract trading.
You can go long or short, with leverage, but the risks are extremely high; beginners should definitely avoid it.
Avoid common mistakes made by beginners.
Do not heavily invest in a single cryptocurrency to avoid being trapped.
Don't buy at the top; after a surge, there is often a risk of correction.
Reduce frequent trading; fees and slippage will eat into your profits.
Don't easily believe insider information; most of it is just a scheme to fleece you.
Stay away from high-leverage contracts; liquidation can happen in an instant.
Step Four: Risk management determines how far you can go.
Reasonably control positions.
Do not invest all your funds at once; it is advisable to use at most 30%-50% of your capital for trading, keeping the rest as reserves. For example, with 10,000 yuan, take out a maximum of 3,000-5,000 yuan to enter the market.
Set stop-loss and take-profit.
Take profit.
When profits reach a certain percentage, like 50%, you can sell part to lock in profits.
Cut losses.
When the price breaks a key support level, sell decisively to cut losses; preserving capital is more important than anything else.
Remember: Making money in the cryptocurrency market = Capital × Volatility × Time. If your capital is lost, no matter how good the market is, it won't matter to you.
Step Five: Grasping market trends is essential for profit.
Correct strategies for bull and bear markets.
Bull market.
Dare to hold positions and enjoy the upward trend, but do not be greedy; take profits when available.
Bear market.
Patiently seek quality assets, positioning at low levels while waiting for the market to recover.
Follow hot sectors.
The cryptocurrency circle has different hotspots every year:
2021: DeFi, NFT, Meme coins.
2023-2024: Layer2, AI concepts, Meme coins, Solana ecosystem.
Possible trends in 2025: RWA (Real World Assets on Chain), ZK (Zero-Knowledge Proofs), BTC ecosystem.
Hot sectors can indeed bring high returns, but you must participate rationally to avoid blindly following trends. Lastly, I remind you again: trading cryptocurrencies is risky, and you must do your homework and operate cautiously before investing.
