1. Entering the crypto world: An accidental 'wealth code'
In the summer of 2017, I was still worried about my mortgage. At a class reunion, a once inconspicuous classmate, wearing a Rolex, smiled and said, 'I bought some Bitcoin, and it multiplied several times.' At that time, I knew nothing about 'blockchain' or 'decentralization,' only remembering the three words 'Bitcoin.' After returning home with a 'let's try' mentality, I registered an account on an exchange and used half a month's salary to buy 0.1 Bitcoin, plunging headfirst into this 24/7 crazy market.
2. Small losses and small gains: Paying tuition in the ups and downs
The first six months felt like a roller coaster. I would hurriedly sell when Bitcoin rose by 10%, only to watch it rise another 50% later; I panicked and sold during corrections, often at the lowest point. The most memorable was in 2018, when I followed the trend and bought into a 'hundredfold coin' Ponzi scheme, making 30% in three days, but greed kept me from selling, and I ended up losing all my principal. During that time, I ended up with a small loss, but every trade felt like paying tuition to the market—turns out 'insider information' might be a trap, and 'buying high and selling low' is a fatal flaw for beginners.
3. Coin trading skills: From haphazard trading to rational analysis
After losing a lot, I began to reflect, slowly summarizing a few insights:
• Understanding candlestick charts is fundamental, but do not blindly trust technical indicators; combining news and market sentiment is more important;
• Never go all in, keep 30% of your position to deal with sudden market changes, leaving room for average down during downturns;
• Learn to 'take profits and cut losses', for example, set a profit-taking at 20% and a stop-loss at 10%, strictly execute without greed;
• Only invest in cryptocurrencies that you can understand; projects that you can't even understand the white paper of should be avoided, no matter how popular they are.
4. Iron rules for trading: Surviving is more important than making quick money
In 2019, as the market warmed up, I slowly recovered with a set of 'iron rules':
1. The position of a single cryptocurrency should not exceed 30% of total capital to diversify risks;
2. Do not operate during emotional highs, avoid staring at the screen before bed to prevent impulsive decisions;
3. After making a profit, withdraw 20% for safety, secure your earnings and use profits to take high-risk opportunities;
4. Do not use leverage (at that time I was very cautious about contracts), only operate with the principal.
This set of strategies helped me preserve my principal during the major downturn in 2020 and also allowed me to earn my first pot of gold during that year's bull market.
5. Avoiding risks: Lessons learned from past mistakes
The risks in the crypto world are hidden in every corner; I summarized a few key points to avoid pitfalls:
• Choose top exchanges, small platforms may run away or be hacked;
• Store private keys and passwords separately, never keep them in your phone's notes;
• Be wary of 'group recommendations'; 90% of 'teachers' are there to profit from you;
• Always maintain respect for the market; even the strongest cryptocurrencies can crash.
6. Contract trading: Big opportunities in high risks
In the late stage of the 2021 bull market, as spot gains slowed down, I began researching contracts. Initially, I practiced with small funds to familiarize myself with long and short operations and margin mechanisms. After experiencing a few liquidations, I developed a 'trend is king' contract logic: only trade the major trends of mainstream currencies, do not gamble on short-term fluctuations; keep the margin ratio within 20%, and lock in profits with stop-losses.
7. An eight-year journey: A few heartfelt words for beginners
Looking back at these eight years, the crypto world has taught me more than just making money:
• It made me realize that 'cognition determines wealth'; avoid areas you do not understand, and the ability to learn is more important than luck;
• Mindset is the biggest enemy; greed and fear magnify mistakes, stability leads to success;
• Never leverage all your wealth, this is not investing, it's gambling;
• Understand when to take profits; money in the crypto world comes quickly, but goes even faster.
8. Wish you success in making profits
The crypto world is not a casino, but a place for cultivation. Some achieve class leaps here, while others find themselves back to square one overnight.
The market exploded, and assets doubled! Following Cheng Ge's lead, I strategically positioned myself to grasp the main upward trend.
Continuously monitor: SPK, FIDA
