I am 32 years old this year, started trading coins at 22, and by 2023-2024 my funds reached eight digits. Now my life includes staying at high-end hotels around 2000 yuan, possibly with luggage and hats showing crypto symbols. It’s much more comfortable than the older generation doing real business or the 80s generation doing e-commerce.

I have hardly experienced business disputes; there are fewer worries.

The most important thing in trading coins is having a good mindset; technique is secondary.

My experience sharing:

Learning is fundamental: Understanding blockchain technology, principles of digital currency, and market trends is essential for investment.

Rational investment: Do not blindly follow trends; invest according to your own risk tolerance.

Diversified investment: Do not bet all funds on one project; diversification can reduce risk.

Long-term holding: The digital currency market is highly volatile, and holding quality assets for the long term is more likely to yield substantial returns.

Stay calm: Don’t be swayed by market emotions; maintaining a calm mind is key to making correct decisions.

The stories of becoming rich in the crypto world are certainly enviable, but the risks and sacrifices behind them cannot be ignored.

The core of not blowing up in contracts in the crypto world is: practical strategies for position management.

Starting from 5000U, rolling to 120,000U is not a pipe dream.

But precise strategies + strict position management are required.

The following are market-tested practical methods suitable for short-term/swing players.

But the last step, the 'mysterious bonus', is key.

Step one: Fund allocation (how to bet with 5000U?)

Core principle: No all-in, no life-and-death bets, use compound thinking to roll.

3000U (60%) → Low-risk steady trading (BTC/ETH swing).

1000U (20%) → High-risk altcoins (grab hot spots like AI, MEME, RWA)

500U (10%) → Contract hedge (only for extreme market protection).

500U (10%) → Cash reserve (waiting for a crash to bottom fish).

Beginner's mistake: going all-in on a certain coin or fully leveraging to bet on direction.

Step two: Trading strategy (how to grow funds?)

1. Main battlefield: BTC/ETH swing (3000U)

Strategy at key support/resistance levels for swings (e.g., buy when BTC drops to moving average support, sell at previous high resistance).

Goal: Earn 10-20% on each wave, do 2-3 times a month, and roll with compound growth.

2. Critical points: High-risk altcoins (1000U)

Strategy: Only play low market cap coins with hot spots (like new coin listings, sector rotation).

3. Hedge protection (500U contract).

Usage: When the market shows extreme conditions (like before a crash), use 5-10x short positions to hedge and reduce spot losses.

Step three: Position management (how to avoid blowing up?).

Single trade ≤ 10% of capital (e.g., in a 5000U account, a single order ≤ 500U).

Stop-loss hard limit ≤ 5% (cut if losing 500U, don’t hold on).

Take profits in batches (take out half when earning 20%, keep the remaining half for higher gains).

Weekly review, cut off weak coins, keep strong coins.

Key thought: 'Cut losses short, let profits run', rather than 'take a little profit and hold on to losses'.

Steps for rolling positions:

1. Choose a target: Select a cryptocurrency that you believe will rise in the future.

2. First purchase: Use all your funds to buy that cryptocurrency.

3. Set stop-loss: Set a stop-loss below the purchase price to limit your losses.

4. Monitor the market: Continuously monitor market trends. 5. When prices rise: If prices reach the preset target, use part of the profits to add positions and buy more.

5. Repeat steps 4 and 5: Continue monitoring the market and add positions when prices rise.

The art of rolling positions cannot be mastered on a whim. It requires timing, location, and people to increase odds of success.

Here are four golden timings for rolling positions:

(1) Breakthrough after long-term consolidation: When the market has been in a consolidation phase for a long time, and volatility drops to a new low, once the market chooses a breakout direction, consider using rolling positions.

(2) Bottom fishing during a bull market: In the wave of a bull market, the market experiences a strong rise and then suddenly drops. At this time, consider using a rolling position strategy to capture bottom-fishing opportunities.

(3) Breakthrough at the weekly level: When the market breaks through key resistance or support levels on the weekly chart, it’s like breaking through a solid defense. At this time, rolling positions can seize this breakthrough opportunity.

(4) Market sentiment and news events: When market sentiment is as changeable as the weather, or when significant news events and policy changes may shake the market, rolling positions can become your weapon.

Key points.

1. Only roll long positions: Avoid counter-trend operations; the bull market cycle in crypto is longer, making the upward trend easier to capture.

2. Isolated position model: Use the exchange's 'isolated margin' mode to isolate individual position risks and avoid total liquidation.

3. Leverage limits: Even if the trend is clear, leverage should not exceed 5 times to avoid extreme fluctuations leading to liquidation.

4. Emotional management: Don’t chase high after missing the opportunity to add positions, wait for a pullback or the next trend signal.

If you haven't established buy and sell points, don’t force buying or selling. This may seem unimportant, but it is crucial. Without buy and sell points, forced trading is essentially emotional trading. If you can achieve this, your trading level can improve significantly. Of course, there is another issue: you must establish your own 'buy and sell points'. Everyone's buy and sell points are unique, suitable for themselves due to differing personalities, fund amounts, and risk preferences.

Establish buy and sell point rules, then do 'buy at buy points, sell at sell points', so you won’t be swayed by market emotions. In the last two years, the market has been too extreme, changes too fast, and if emotions cannot be controlled, it’s easy to be led by the market; when it rises, you feel good, when it drops, you feel doomed, always staying in that feeling, emotions dominate, making it hard to stabilize profits.

The psychological process of retail investors generally goes through these stages:

1. When the market rises significantly, feeling regretful because the position does not meet expectations, saying to wait for a drop before going all-in.

2. When the market has just experienced a significant drop, still full of confidence, chatting and laughing easily, thinking the drop is too small, waiting for an opportunity to add positions.

3. As the market enters a downtrend, start complaining, feeling down, hoping for a rebound but seeing none.

4. As the market continues to fluctuate, people begin to remain silent, and no one expresses opinions anymore.

5. No one talks about bottom fishing anymore; people always feel the market will continue to fall, and no one mentions the blockchain revolution.

6. Occasionally someone expresses an opinion to warn others, but everyone seems still immersed in the current situation, with little reaction.

7. When the market starts to reverse, still waiting for a pullback, mistakenly thinking it's a temporary rebound, continue to observe.

8. When the market shows obvious abnormalities, chasing the rise to enter, only to find it is a temporary top.

9. The same operations repeatedly lead to being eliminated by the bear market. Bottom fishing during a bull market gets trapped, resulting in losses and retreating from the market, ending investment.

Playing around in the crypto world is essentially a struggle between retail investors and institutional players. If you lack cutting-edge news and first-hand information, you can only be cut! Welcome like-minded crypto enthusiasts to discuss together~