I entered the cryptocurrency circle with 50,000 and made a profit of 10 million, then went into debt of 8 million, then profited 20 million, and now I have financial freedom. In the last two years, from December 23, 2021, to August 6, 2023, I achieved a return rate of 418134.86% with less than 500,000, turning it into over 29 million. I want to share some practical and useful advice for those just entering the cryptocurrency circle!
In the cryptocurrency circle, contracts are like gambling, even more addictive than drugs! As someone who has experienced it, I've blown up my account three times in one year, with debts of 8 million. After three more years of repaying debts and regaining a net worth of ten million, using this method in the cryptocurrency circle makes earning money as easy as drinking water; the cryptocurrency circle is like an ATM!
If you also want to treat cryptocurrency trading as a second source of income, want to share a piece of the pie in the cryptocurrency circle, and are willing to spend time growing and learning, then don't miss this article. Read it carefully; every point is the essence of the cryptocurrency circle.
The eight basic principles of contract trading (must-learn for beginners)
1. The risk for each trade must not exceed 10% of the trading capital, that is, 10% of the trading capital. Newbies are advised to keep this between 2%-5%!
2. After entering the market, never blindly close positions due to a lack of patience. The unfolding of the market takes time. Before the market proves your actions are wrong, you must have enough confidence and patience.
3. You must execute according to the plan; over-trading is strictly forbidden.
4. After trading correctly and making a profit, use an adjusted stop-loss strategy as protection, boldly aim to earn richer profits until the trend changes.
5. After entering the market, one must not casually cancel stop-loss orders. Once you enter the market, the entire trading process that follows is a risk control process, so after entering, protection must be set up, and naked trading is strictly prohibited.
6. Avoid adding costs after smooth trading, that is, avoid increasing positions.
7. You cannot casually switch from a long position to a short position; this is a high-skill operation.
8. When trading smoothly, avoid casually increasing your position; the probability of making mistakes is very high at this time because you become complacent.
So how can small funds grow larger?
This brings us to the topic of the compounding effect. Imagine if you have a coin that doubles in value every day; after a month, its value would be astonishing. The first day it doubles, the second day it doubles again, and so on, leading to astronomical results. This is the power of compounding. Even if starting with a small amount, after a long time of continuous doubling, it can grow to tens of millions.
For friends who want to enter the market with small funds, I suggest focusing on big goals. Many believe that small funds should frequently engage in short-term trading to achieve quick appreciation, but actually, it is more suitable for medium to long-term investments. Instead of making small profits daily, one should focus on achieving several times growth with each trade, using multiples, aiming for exponential growth.
Regarding positions, first understand how to diversify risks; do not concentrate all funds on one trade. You can divide your funds into three to four parts, using only one part for each trade. If you have 40,000, divide it into four parts and use 10,000 for trading. Also, make moderate use of leverage; personally, I suggest not using more than 10x for major coins and not more than 4x for altcoins. Additionally, dynamically adjust; if you incur losses, supplement with an equal amount from external funds, and if you make a profit, extract some appropriately; do whatever it takes to avoid losses. Lastly, increase your positions, but only under the condition that you are already in profit. When your funds grow to a certain level, you can gradually increase the amount for each trade, but don’t increase too much at once; transition slowly.
Potential coins are what most people want to gain in a bull market, but due to various reasons, that may not happen. It could be an unknown coin that no one is paying attention to, or it could be a sell-off followed by a rise, or a buy followed by a downturn. For hundred-fold coins, which are often unattainable projects, more people are willing to focus on mainstream coins like BTC and ETH, hoping to gain the most basic dividends in the cryptocurrency circle.
So how do we find hundred-fold coins?
Using market capitalization rankings to select coins is a method that many people rarely pay attention to. In simple terms, we select suitable tokens from the top one hundred and invest in them. The top one hundred ensures that the market value of the tokens is not very low, making it safe for large funds to enter. Some small projects might only require a small amount of funds for main players to drive prices, but if you discover and buy, it may lead to a rush for shares, and the main player may give up on the project. Therefore, the benefit of selecting from the top one hundred is that the main players will not abandon the project due to a small group rushing for shares.
This also addresses potential negative factors. So how do we choose?
Here are three viewpoints to follow:
First, the project must be within the top one hundred, as new projects generally slowly enter the top one hundred rather than appearing directly at the top. This process certainly involves main players conducting market operations.
Secondly, we emphasize that it should be a new project from the past two years; here we stress that it must be a new project because older projects may have already gone through a wave of speculation, leading to greater sell pressure, making it difficult to rise again.
Thirdly, the project background is good. Here, the background includes the project team, total supply, circulation, and token distribution. Basically, there should be minimal sell pressure or hidden risks, which is essential for project vetting.
Since the coins in the top one hundred generally have a pattern of rising to fall, i.e., new coins often see their market value continuously rise in a bull market, while old coins tend to decline in value. The most intuitive evidence is the rankings of the top ten; in the previous bull market, coins like Ripple, Dogecoin, EOS, Litecoin, etc., were once in the top ten or even the top three, but many have now fallen below the top ten or even the top one hundred. Coins like TON and KAS have gradually moved from outside the top one hundred to within it, and they are all new faces.
The top ten or even the top one hundred need to continuously innovate, which is also an important criterion for our selection. Through these three steps, we can filter out some good cryptocurrencies. What are the current coins worth paying attention to? KAS is currently a mining coin with a constantly rising market value that has gained a lot of support from miners. For investors, the returns are also good, and it complies with the new coin rules of the past two years. TON is a popular project this year, and of course, its token market value has skyrocketed into the top one hundred, meeting the requirements for new coins and having a solid background. Similar coins include SUI, APT, ARB, and OP; however, the current market environment is not favorable, so prices are also suppressed.
Others may meet the requirements, but we also need to filter them out, such as the coins below:
PEPE, WIF, etc.: Since they are meme tokens, the speculation is heavier, meaning they are likely to fluctuate wildly due to market turbulence. Therefore, if seeking stability, it is recommended not to choose such MEME tokens. There are also some popular strong tracks that have been organized for everyone; it's advisable to bookmark them! (Where there is heat, there is hot money)
1. SOLANA track JTO: Low market value potential in the SOL ecosystem WIF: A new favorite in SOL, with unlimited potential! RAY: Tomorrow's star of SOL, not to be missed!
PYTH: Oracle, benchmarking LINK. JUP: SOL ecosystem decentralized exchange, trading volume is not inferior to UNI.
2. BRC20 track ORDI: missing it means missing the big coin ecosystem. Mixed SATS: potential RATS: high consensus.
3. MEME track PEPE: the new favorite in the MEME world, gaining momentum!
SHIB: A legend in MEME, popularity undiminished!
BOME: A new force in MEME, gaining momentum rapidly!
BONK: SOL ecosystem meme leader
WIF: Miracle leader
4. AI artificial intelligence track AGIX: the leader in AI, the future is promising!
FET: An AI dark horse, with broad prospects!
WLD: AI new force, worth paying attention to!
ARKM: Ultraman investment, with relatively low market value.
5. RWA track ONDO: a leader in the RWA field, the top choice for investment!
POLYX: A new star in RWA, not to be underestimated!
TRN: Popular RWA project with unlimited potential! RIO0: A dark horse in RWA, the future is promising!
The opportunity has come, assets doubled! Follow Biao Ge closely and easily make big money.
Continuously pay attention to: ERA, RPL.
