At 3 AM, my cigarette pack was empty, and the rain outside pounded against the glass, reminiscent of the sound of her slamming the door during our divorce. In 2024, I had become a joke — trading cryptocurrencies wiped out my savings, my wife left, and standing on the balcony looking down, even the wind seemed to mock my predicament.
But now, I dare to sit here and type these words, not because of how glorious my comeback is, but to tell you: the crypto world can destroy a person, but it can also help one see the essence of living. If you are currently stuck in the mire, perhaps my story can offer you a lifeline.
Let’s not even talk about turning things around; just holding on during the worst times is a difficult task!
This answer is relatively long; if you can't stand it, scroll to the end of the article. There’s a sentence that summarizes my painful lessons and experiences from more than a decade of investment and trading, worth millions! It needs to be understood repeatedly~
Those heart-wrenching questions are the fuel for survival.
When I got divorced last year, my ex-wife held the child custody agreement and said, "You can't even gather 3,000 in child support; what right do you have to visitation rights?" That day, I squatted at the entrance of the civil affairs bureau for three hours, my head pounding like it was about to explode, almost collapsing on the sidewalk.
Later, I kept asking myself: how does a person ruin a good hand of cards? Until one night, I looked in the mirror and asked myself 7 questions, and cold sweat soaked my shirt.
How old are you this year?
Are you currently in debt, and can the money you earn support your life?
How old are your parents now?
If your parents currently need 300,000 yuan in emergency funds, can you take it out immediately?
If your partner loses their job now, can you afford to support both of you?
Will you allow your partner to hold their head high in front of their best friends?
Will you be fearful of the above questions?
Fearful? At that time, my hand holding the mirror was shaking. But it was this fear that became the fuel for my later recovery.
In the darkest moments, not only money is shattered.
In life, there will be moments when you fall into cliffs. The worst fall I had was when I exchanged 40 BTC and 90 ETH for a bunch of altcoins — looking back now, how did I dare to go all in on coins I couldn’t even understand?
During that time, the numbers in my account dropped by five digits every day, my phone was filled with debt collection messages, and my parents only dared to call and say, "I'm busy with a project." One night, I stumbled upon a video of my son in kindergarten and suddenly collapsed to the ground, crying uncontrollably.
The darkest moment is not the lack of money, but having your confidence, judgment, and even your expectations for life shattered into pieces. You start to doubt yourself: Is this how it will be for the rest of my life? Do I really not deserve to make money?
But later I discovered that those who can climb back from the edge all have a common point — they first accept that they have "shattered." I admitted I was greedy, foolish, always looking for shortcuts, and acknowledged that those altcoins were lost due to my own luck. Accepting that "I am not capable" allowed me to look up and see the road again.
The essence of poverty has never been about lacking money.
The first step to climbing out of the mire is to understand why you fell in. I went through (the essence of poverty) and compared it to my past self, and the more I looked, the more terrified I became —
I used to be the kind of person who "couldn't keep money warm" in my hands: as soon as I earned a little, I would change my phone, buy sneakers, rush to pay for friends' dinners, and then turn around to borrow money for rent. But when it came to spending money on learning something? No way, "this money can't be spent on enjoyment right away."
I always thought I was smart and looked down on those who "stuck to mainstream coins": "So foolish, trading altcoins for a few days can double the investment; who wants to waste time with you?" And what was the outcome? They held onto BTC, which increased tenfold, while my traded altcoins went to zero.
Guo Degang said, "Those who beg for food don't ask for breakfast; if they can get up early, they wouldn't be begging." I used to be too lazy: lazy to research project white papers, lazy to look at macro cycles, lazy to review losses, always waiting for others to provide codes and points, ideally just handing me the money directly.
These flaws are the root of poverty.
Want to make money trading cryptocurrencies? First, engrain these few principles into your bones.
Now my account is slowly recovering, not by luck, but through lessons learned from countless falls. Here are a few heartfelt words for new investors:
1. SAR Indicator: A "lifeline" for beginners, with buy and sell points so simple that they don't require thought. Many believe that the more complicated the indicator, the more powerful it is, but in fact, the SAR indicator is the "expert hidden among the masses." It looks like this: little dots following the price of the coin; if the price is above the dots, it’s rising; if below, it’s falling. It's simple enough to learn in 5 minutes.
Using SAR to judge "bullish or bearish" is 10 times more reliable than MACD.
If the price is above the SAR (with dots below the K-line), it indicates a "bull market"; do not rush to sell, even if there’s a correction, as long as it doesn’t break the SAR point, continue to hold. In 2021, Ethereum rose from 2000 to 4000, with the SAR point always below; I made an extra million by adhering to the "don’t sell until it breaks the point" rule.
If the price breaks below the SAR (with dots above the K-line), it indicates a "bear market"; you must sell. Last year, Bitcoin dropped from 69,000 to 30,000, and the SAR point flipped above 50,000; I decisively sold my position, avoiding the subsequent halving.
Remember these 2 "angle" signals to avoid 80% of the pitfalls.
If the angle of the SAR points running upwards is greater than 45 degrees, it indicates a sharp rise; do not rush to sell (for example, in 2023, SOL rose from 20 to 100, and the SAR points were almost vertical; selling at this time would mean losing money);
If the angle of the SAR points running downwards is greater than 45 degrees, it indicates a sharp fall; do not try to catch the bottom (for example, during the 2022 LUNA collapse, the SAR points approached 90 degrees; those who tried to catch the bottom all got liquidated).
Key Reminder: SAR will fail in a "volatile market" (frequent fluctuations). At this time, refrain from trading; wait until the trend is clear before making a move — its strength lies in "capturing trends," not "guessing volatility." 2. Support and Resistance Levels: Understanding these two points can increase profits by 30%. Many people buy coins without knowing when to sell, and after selling, they are unsure when to buy again. It's actually just a matter of "two points": support level (where prices stop falling) and resistance level (where prices stop rising).
If the support level is broken, it becomes a resistance level; if the resistance level is broken, it becomes a support level.
For example, if a certain coin repeatedly fails to rise above 6,800 yuan (3 failed attempts), this is a "resistance level"; later, it breaks below 6,000 yuan (the support level) with huge volume, making 6,000 yuan the new resistance level — when it tries to rise back to 6,000, it will encounter a lot of trapped selling, making it difficult to surpass.
When I traded FIL last year, I relied on this principle: it had 3 support levels at 40 dollars (it rebounded whenever it fell to this level); I bought at 40 dollars and sold at 50 dollars (the resistance level), making a total profit of 60% over 3 trades.To judge "true or false breakouts," just look at "trading volume."
When a resistance level is broken, the volume must increase significantly (at least 2 times the usual level) for it to be a "true breakout," allowing for position increases; if there’s no increase in volume, it’s a "false breakout," and you should sell quickly. For example, when BTC broke 40,000 dollars this year, the volume was 3 times the usual level, and I decisively increased my position, leading to a rise above 50,000, earning an additional 200,000.
3. Bollinger Bands: A magical tool for "guessing direction" during sideways movement, essential to check before a trend change.
Sideways markets are the most frustrating: if you buy, it doesn't rise; if you sell, it rises. But Bollinger Bands can help you "sniff out" big trends in advance — it’s like a "tightening band"; when it narrows, prepare for a change; when it opens, a trend is coming.
Bollinger Bands narrowing to the point of "almost sticking together" indicates that a major move is imminent.
When the price is sideways, and the upper, middle, and lower Bollinger Bands squeeze into a line, it indicates that both bulls and bears are "tired" and a decisive move is about to happen. At this time, do not use leverage and do not trade short (the fees won't be recouped); wait for it to break out up or down before taking action — the greater the breakout, the more intense the subsequent market (for example, in 2023, Bitcoin was sideways for a month, and after the Bollinger Bands narrowed, it skyrocketed by 30%).When the bands open up, look at the position to determine buying or selling.
If the bands open up at high prices and then start to narrow, it’s a "sell signal" (for example, when the price increased by 3 times, and the Bollinger Bands opened to their maximum, then suddenly narrowed, it’s highly likely to drop);
If the bands open up at low prices, and the price is running from the middle band upwards, it’s a "buy signal" (for example, if the price drops by 50%, and the Bollinger Bands narrow before suddenly opening up, with the middle band turning upwards, buying at this time has a high win rate).
Reminder: Bollinger Bands have strong lagging characteristics (they move only after the price moves); do not use them to guess "reversals," only use them to judge whether "trends will continue." 4. Volume: Trading volume is the "true signal," while others are "deceptive." Many people look at K-line rises and falls but overlook the "trading volume" (the red and green bars below). In fact, 90% of the "violent rises and falls" in the crypto world are dictated by "volume" — increases or decreases without volume are just the big players "playing by themselves."
Remember these 4 phrases; they are worth more than 100 indicators.
High volume at high prices must fall: if the price has risen significantly (for example, five times), and suddenly the volume increases (the bars are three times higher than usual), regardless of how nice the candlestick looks, sell quickly (the big players are unloading);
High volume at low prices can be bought: if the price has fallen significantly (for example, down 70%), and the volume suddenly increases while no new lows are made, this indicates "capital entering the market," allowing for gradual purchases (when Bitcoin fell to $15,000 in 2022, I increased my position and made a threefold profit);
No volume increases are a "trap": if the price rises but the volume does not increase (the bars remain low), it’s highly likely that the big players are "pulling and singing"; it rises quickly but falls even faster, so do not chase;
Be cautious of volume-price divergence: if the price hits a new high but the volume is smaller than at the last peak (the bars become shorter), it indicates that "buying pressure is lagging behind," it’s time to sell (for example, when Bitcoin rose to $69,000 in 2021, the volume was lower than the previous high; I sold everything and avoided the crash).
5. Lastly, I want to give you a "foolproof trading method" that even beginners can easily follow.
By connecting the tools above, you get a trading process simple enough that "no thinking is required":
Use the SAR indicator to determine direction: if the price is above the SAR, only go long; if below, only go short;
Use support/resistance levels to find points: close to the support level + SAR below, buy; close to the resistance level + SAR above, sell;
Use Bollinger Bands to find opportunities: during sideways movement, if the Bollinger Bands are narrowing, prepare for a breakout; in a trend, if the Bollinger Bands are opening, follow the direction.
Use volume to verify authenticity: check the trading volume before buying; if there's no increase, give up; if volume increases, then take action.
Using this method, I traded SOL 4 times last year, earning 15%-30% each time, doubling my investment overall — complicated indicators only make you hesitate; simple rules allow you to be decisive. Conclusion: The core of making money in the crypto world lies in "simplicity + execution." From liquidation to buying a villa, my biggest realization is: the crypto space is not lacking in opportunities, but rather in "practical methods." SAR, support and resistance, Bollinger Bands, volume... these simple tools can help you avoid most pitfalls.