Many people ask, can trading cryptocurrencies really make you rich?
The answer is yes—but the prerequisite is that you have to 'live long enough'.
What does it mean to become rich?
Turning 100,000 into 1 million, some consider it a fortune;
But in Shanghai, 1 million may only buy a toilet.
Turning 1 million into 10 million is what truly allows you to settle down in the city.
Therefore, getting rich is relative; the larger the principal, the more meaningful the return.
So how can we continuously increase the principal?
Not by striking it rich once, but by winning steadily over the long term.
Below is a set of 'silly methods for trading cryptocurrencies' that I have summarized, practical to the extreme without being flashy.
I. Risk Control: To survive, first learn not to die
How to allocate positions?
✅ Positive position increase (when making money): 1→0.6→0.3 (don't go all in at once)
✅ Reduce position (when losing money): cut half each time
✅ Leverage should not exceed 20% of account net value
Ironclad stop-loss rules:
Single loss not exceeding 2% of total capital
Lose 5% in one day, stop immediately
Lose 10% in one week, mandatory break + review
II. Trading Discipline: No matter how good the opportunity, it must follow the rules
Three conditions must be met before entering the market:
✔ Triple resonance of fundamentals, technicals, and sentiment
✔ Clear breakthrough of key levels
✔ Increased volatility (ATR exceeds 2 times the average)
When not to trade?
⏰ Clear positions 1 hour before major market movements
⛔ No trading on the same day after three consecutive losses
🌙 Reduce position size by half during inactive periods (e.g., US market closed)
III. Psychological Management: Profits in hand are real money
What to do with profits?
💰 If profits exceed 20%, immediately take 10% off the table
📉 If net value hits a new high, lower leverage by 10%
📌 Set 'dynamic take profit': automatic take profit at 30% drawdown
What to do with losses?
🧊 Continuous losses → Stop trading for 24 hours
📓 Write a review → Record emotions and mistakes
🧪 Simulated trading verification → Restore real trading only after 2 consecutive weeks
IV. Strategy Evolution: Don't put all your eggs in one basket
Allocate three strategy combinations:
Trend trading
Arbitrage strategy
Hedging for risk avoidance
Capital allocation of 5:3:2, quarterly evaluation of strategy effectiveness
Response to extreme market conditions:
⚠ VIX index > 30 → Activate risk avoidance strategy
⚠ Black swan event → Immediately hedge in the opposite direction
⚠ Poor liquidity → Force reduction to 10%
This set of 'silly methods for trading cryptocurrencies' may seem troublesome, but it is crucial for your long-term survival in the crypto space.
Those who wish to make a fortune with a single trade will eventually fail;
Those who can steadily make money are the true winners.
Don't rush to get rich; first, learn to survive.
10 million is not a dream, but it requires discipline and patience to achieve.
