Let me talk about myself. After graduating, I only worked for a little over a month before quitting; working really doesn't suit me. Shortly after quitting, I got into the crypto world, stepping in with 50,000 savings. At first, I didn't understand anything and lost over 20,000. With a determination not to give up, I went back to work, persistently studying through the ups and downs over more than a decade, and now my assets exceed 80 million.
Although I am not like some people who turned 10,000 into two small targets, I am already very content, stable and secure, dreaming that my account can exceed 100 million by the end of this year, and next year I can have more capital to make more money.
In the crypto world, if you truly want to achieve financial freedom and realize compound interest, methods, techniques, and forming your own profit system are crucial! Once mastered, the crypto world will be like your 'ATM', and making money will be as simple as breathing! Today, I share some valuable insights, worth 60 million, hoping to help you.
Today, I share some valuable insights, worth 60 million, hoping to help you.
1. Choose the right platform: Avoid 'customer loss eating' platforms
Preferred exchanges: Binance, OKX, Bybit (low fees, good depth, no lag), avoid small platforms (in 2023, a certain platform maliciously spiked, causing users to collectively be liquidated).
Key indicators: Check 'funding volume' (over 1 billion USD), 'number of positions' (over 500,000), 'historical spike records' (the fewer, the better).
2. Position control: Use the '1% rule' to protect your principal
Single position: Never exceed 1% of total funds for each opening (example: with a 100,000 principal, each opening should not exceed 1,000 margin).
Total position limits: All contract holding margins should not exceed 20% of total funds (to avoid simultaneous liquidation of long and short positions). Example: with a principal of 10,000 and 10 times leverage, the margin for a single position should be ≤ 100 (corresponding to 1,000 contract value), total holding margin ≤ 2,000.
3. Technical analysis: 3 essential indicators to help you judge direction
MA moving average: The 50-day moving average crosses above the 100-day moving average (golden cross), bullish; crosses down (death cross), bearish.
MACD: Red bars lengthen (bullish strength), green bars lengthen (bearish strength), divergence signals (price rises, bars shrink, may peak).
Support and resistance levels: Check previous highs and lows (e.g., Bitcoin at 32,000 is strong support, 40,000 is strong resistance), open positions in the direction of the breakout.
4. Order techniques: Seize the golden opportunity of 'sharp drops and surges'
Long after a crash: if the price drops more than 5% and reaches a strong support level (for example, Bitcoin dropping to 28,000 in May 2025, rebounding 2% within 30 minutes, going long could earn 20%).
Short after a surge: if the price rises more than 10% and reaches a resistance level (for example, if Bitcoin tries to reach 45,000 but quickly falls back, going short could earn 15% within an hour).
Taboo: Do not open positions during sideways fluctuations (70% of the time is in fluctuations, frequent operations are bound to lose).
5. Closing strategy: The money obtained is real money
Goal achieved closing: Immediately take profits when reaching preset returns (e.g., 20%), do not be greedy.
Breakout stop-loss closing: If it drops below support / rises above resistance, unconditional stop loss (e.g., after opening a long position, if the price drops below the previous low, immediately exit, do not bet on a rebound).
Time stop-loss: If the position exceeds 4 hours without reaching expectations, close forcibly (to avoid staying up late to monitor, statistics from 2023: users holding positions over 12 hours have a threefold increase in liquidation rates).
Three core concepts that beginners must learn: Understand these three points to reduce losses by 80% of the principal
1. Leverage: It is not a double-edged sword, but a 'dragon-slaying knife'
Common leverage: 10 times (low risk), 50 times (medium), 100 times (for advanced users).
Fatal misconceptions: 100 times leverage ≠ earning 100 times, but 'a 1% fluctuation means losing 100% of the principal' (example: with 100 times leverage, investing 10,000 in 1 million assets, a 1% drop means losing 10,000, resulting in direct liquidation).
Iron rule: Newbies should only use 10-20 times leverage, veterans should not exceed 50 times (statistics from 2023: users with 100 times leverage, 99% were liquidated within 3 months).
2. Stop-loss and take-profit: 'life-saving talisman' more important than making money
Stop-loss: Set up in advance 'how much loss must trigger exit' (example: principal of 10,000, set stop-loss at 5%, if losing 500, automatically close the position to avoid holding until liquidation).
Take profit: Automatically cash out after reaching target profit (example: expecting to earn 20%, after a profit of 2,000, forcibly sell to avoid reversals leading to losses).
Real case: In 2024, Bitcoin plummeted 30%, users setting a 10% stop-loss only lost 10% of their capital, while users who did not set a stop-loss were directly liquidated to zero.
3. Funding rate: The 'hidden mechanism' to earn money from the opposing side while lying down
Principle: When long and short positions are imbalanced (e.g., 80% of users are long), the platform will make long users pay funding fees to short users, and vice versa.
Practical tip: During extreme market conditions (e.g., Bitcoin breaking key resistance levels), open a small opposite position to earn funding fees, earning daily returns of 0.1%-1% (data from a certain platform in 2025: users who consistently earn funding fees have stable annualized returns of 15%+).
3 advanced strategies used by experts
1. Hedging strategy: A 'winning formula' that makes money in both rising and falling markets
Operation: Open both 10 times long and 10 times short positions (each occupying 5% of the total), when the price fluctuates more than 2%, close the losing position and hold the profitable position.
Case: Bitcoin fluctuating between 30,000 - 40,000, using a hedging strategy to earn 5%-10% monthly, with nearly zero risk.
2. Laddered position increase: A 'bottom-fishing tool' during a crash
Steps: If the price drops by 10%, open a 1% long position; if it drops another 10%, open a 2% position; if it drops another 10%, open a 3% position, and so on.
Advantage: Reduce average cost; a rebound of 15% can turn losses into profits (example: opening long at 30,000, dropping to 24,000, total position 6%, rebounding to 27,600 to break even).
3. Money management: Use the 'liquidation price calculator' to save your life
Tools: Enter margin, leverage, position size in the exchange APP, automatically calculate the liquidation price (example: with 10 times leverage, 10,000 margin, liquidation price = opening price - opening price × 10%).
Iron rule 4: Ensure the liquidation price is at least 20% away from the current market price (for example, if Bitcoin opens long at 30,000, set the liquidation price at 24,000, leaving enough buffer space).
Contracts are not ATMs, but the battlefield of 'cognitive monetization'
1. Practice with a simulation account: use 10,000 virtual funds to practice for 3 months
Recommended platform: Binance 'Contract Simulation Account', restores real trading 1:1, can be reset if lost all.
Goal: To achieve 'no liquidation within 3 months, win rate over 50%' before investing in real trading.
2. Always remember: Contracts are 'icing on the cake', not 'a gamble to turn things around'
Correct mindset: Use no more than 20% of idle money for contracts; the main job income is fundamental (for a salaried worker earning 3,000, using 600 to trade contracts is sufficient, do not risk all your assets).
3. Liquidation is not the end, but the beginning of growth
Every liquidation is the best teacher: Record the reasons for liquidation (was it too high leverage? No stop-loss? Or emotional trading?), form your own 'pitfall guide.'
Today, I will share a summary of my years of trading experience for free, hoping to help everyone!
If you want to change your fate, you must try the crypto world. If you can't get rich in this circle, ordinary people will never have a chance in their lives.
I believe that excellent traders must have the patience to endure to hold onto prosperity!
Frequent small profits indicate limited ability to judge market conditions precisely. The best solution is to enhance your trading skills for better judgment and analysis of investment targets.
Next, I will share some trading experiences hoping to help investors in need:
First, choose familiar currencies and do not pay too much attention to too many varieties. Understand the relationship of price changes to better grasp the direction of price movements. As for the varieties of interest, do not pay too much attention, as it is a consideration from the investor's perspective. Human energy is limited, and it is impossible to profit from all different varieties without challenging limits.
Second, the importance of position management. If mismanaged, the entire principal can be lost without a chance to recover. Here, it is recommended that the margin for holding positions accounts for about 30% of the capital, with a maximum of no more than 50%. Of course, when encountering favorable market conditions, it is permissible to increase positions appropriately.
Two points to note during trading:
Firstly, do not increase positions on floating profits; secondly, do not increase positions on floating losses. Learning to wait is a compulsory lesson in trading. Create a trading plan and do not trade frequently.
Frequent trading consumes a lot of energy, and the transaction costs can be relatively high. In uncertain market conditions, finding profitable opportunities is not an easy task. If the outcome is not good, it can consume the principal and affect oneself.
Finding profitable opportunities is not an easy task in uncertain market conditions. If the results are poor, it can not only consume the principal but also affect oneself.
Fourth, maintain a good mindset during trading, strengthen learning, summarize more, and exercise more.
Five, set stop-loss and take-profit; take profits promptly and do not hold onto losing positions. The main reason for losses is often holding onto positions.
I will also share a set of my own years of practical strategies, with an average win rate of 80%, which is quite a rare achievement in the crypto trading world.
A method I tested personally, turning 500,000 into 10 million using just this trick (RSI indicator - a high win-rate swing trading method), learn to read RSI in 5 minutes, accurately judge buy and sell points! Win rate as high as 99%, suitable for everyone!
I am a full-time Bitcoin trader, my assets are in the tens of millions, withdrawing 100,000 from the crypto circle every month, feeling no impact, living leisurely and freely, without deceit or scheming, living the life I want.
When trading cryptocurrencies, RSI judgment of tops and bottoms has always been my first choice. Using this method, I turned 500,000 into 10 million in a year. If you also like to double your coins and want to get in on the main uptrend, you must read this article carefully!
This strategy is specifically aimed at active traders holding positions for days to a maximum of weeks.
1. Identify extreme prices (bullish or bearish)
The first step is to identify extreme prices. The simplest way is to compare the price with the simple moving average (like SMA20)
) for comparison. SMA 20 represents the average price over the past 20 trading days. The greater the distance between the current price and SMA20, the more significant the extreme price.
The chart below shows the extreme prices of Tilray Brands Inc (TLRY).
Starting from March 23, the price suddenly surged sharply, peaking on March 27, indicating a price extreme upward (green arrow), at this point, the price was far above the 20-day moving average.
Similar price extremes but on the bearish side can be seen in the stock of Biontech (BNTX). The price dropped sharply, leading to a price extreme downward, at this point, the price significantly fell below SMA20.
2. 2-period RSI below 10 or above 90
Using RSI(2), we try to identify potential rebound (mean reversion) moments. We achieve this by looking for moments on the chart where RSI(2) is below 10 (bullish) or above 90 (bearish).
In the TLRY chart, we added the RSI(2) indicator. You can see that starting from February 24, 2022, its value exceeded 90, indicating an extremely overbought situation.
Additionally, on February 25, 2022, the RSI remained above 90.
As for BNTX, we observed that from January 18 to January 21, 2022, RSI(2) was below 10.
Price extreme upward or downward, while the RSI(2) value is above 90 or below 10, are two necessary conditions for applying this strategy.
3. RSI(2) rises above 10 (bullish setup) or falls below 90 (bearish setup)
This is the last step before we determine the actual entry settings. An RSI(2) value dropping from +90 to below 70 is a signal to go short.
In the chart of TLRY, RSI(2) was slightly below 70 after the trading day on March 28, 2022.
RSI(2) value rising above 30 after falling below 10 is a signal to go long.
This can be observed in the BNTX chart, dated January 25, 2022.
4. Open position
Only after completing the first three steps can you open a position.
Using buy/sell stop-limit orders can very precisely define entry points. With a 'sell stop-limit order', we define that the stock price must first continue to fall below the signal candlestick low for the short position to take effect (taking TLRY as an example).
For BNTX, using 'buy stop-limit orders', the price must first rise above the last candlestick high for the order to take effect and execute.
For BNTX, the order was triggered on the next trading day, and just 6 days later, the price touched SMA20, which was the first target.
Depending on how you further manage your position, you can partially or fully take profits at this level. For the remaining portion, the stop loss can be adjusted upwards.
As for TLRY, the price initially rose slightly, and the sell order did not trigger immediately. Thus, the RSI(2) indicator entered the oversold zone again on March 29, 2022.
The next day, a bearish doji candlestick formed, and RSI(2) fell below 70 for the second time.
Set a revised short entry point below the low of this doji candlestick and set a stop loss above the high; this is definitely a setup worth considering in this mean reversion strategy.
During this process, the position was never threatened, and SMA20 was touched on April 7, 2022.
Examples of other similar 2-period RSI trading strategies
Long WB
1. Price extreme downward, price significantly deviates from SMA20
2. RSI(2) indicator < 10
3. RSI(2) indicator > 30 (however, since the candlestick high indicated by the blue vertical arrows was not broken, no entry was made the next day)
4. RSI(2) falls below 30 again
5. RSI(2) > 30
6. This time, the candlestick high indicated by the green arrow was broken on the next trading day (long entry, stop loss set below the low of the falling price range).
7. First goal achieved (SMA20)
Long IAS
1. Price extreme downward, price significantly deviates from SMA20
2. RSI(2) indicator < 10
3. RSI(2) indicator > 30
4. The candlestick high indicated by the green arrow was broken (long entry, stop-loss set below the low of the falling price range).
5. First goal achieved (SMA20)
Short EIGR
1. Price extreme upward, price significantly deviates from SMA20
2. RSI(2) indicator > 90
3. RSI(2) indicator < 70
4. The candlestick low indicated by the orange arrow was broken (short entry, stop-loss set above the high of the rising price range).
5. First goal achieved (SMA20)
Some important points to note when using the 2-period RSI strategy
● Ensure that extreme prices are clearly visible. The greater the intensity and speed of the price deviation from the moving average, the greater the likelihood of a subsequent pullback, pushing the price back toward the direction of the moving average.
● Always follow your stop loss! Strong trends can sometimes last longer than expected. Especially for trends with fundamental reasons, such as company performance far exceeding expectations, things can develop rapidly in a very short time.
● Do not try to predict reversals in advance; patiently wait for RSI(2) to recover from overbought or oversold conditions, and always use stop-limit orders slightly above or below the triggered candlestick high or low. By doing this, you can avoid many false signals.
● Do not solely rely on one indicator to formulate a strategy, but try to find other elements that support your views and setups. For example, bouncing from important support levels in higher time frames or the shape of the signal candlestick itself (such as bullish hammer or bullish engulfing patterns, etc.). The more converging elements, the stronger the setup!
