8 years of trading cryptocurrencies turned 200,000 into a livelihood; please keep these valuable experiences.
After 8 years of struggling in the cryptocurrency market, I dived in with a principal of 200,000 and experienced countless thrilling ups and downs, ultimately succeeding in supporting my family's daily expenses through trading cryptocurrencies. Along the way, there were surprises of overnight wealth and crises of total loss. Now, I share the experiences I have summarized, hoping to provide some reference for everyone.
1. Hold period depends on market conditions, not time.
Many newcomers often get tangled up in how long to hold their coins; this is actually a misconception. The cryptocurrency market changes rapidly, and the holding time does not determine returns. Some coins may reach their price peaks in just a few weeks, while others may remain stagnant for a long time. What you should really focus on is whether the market has reached its peak. To judge the market, you can analyze trading volume, market enthusiasm, and relevant technical indicators. When market sentiment is high, trading volume surges, and various positive news floods in, it is very likely that the market is nearing its end, and you should consider selling.
2. In a rising market, don't be greedy; take profits at the right time.
During the price rise phase, many people fall into a psychological trap: always thinking about earning more, fantasizing that prices will continue to rise, and hesitating to sell at high points. But the market won't always go up; greed often causes people to miss the best selling opportunities. There was a time when one of the coins I held rose significantly in a short period, and I was blinded by greed and didn't sell in time. A few days later, the price plummeted, and my previous profits instantly shrank. Therefore, during the price rise, you should decisively act based on your profit goals and risk tolerance.
3. Take profits when you see them; secure your winning fruits.
Taking profits is easier said than done. It requires not only wisdom but also strong patience. When the coins you hold start to profit, learn to analyze calmly and not be overwhelmed by temporary gains. Set a reasonable profit-taking point, and once the target is reached, sell decisively. Additionally, overcome the impulse to re-enter the market to avoid losing existing profits due to overtrading.
4. When everyone is hotly discussing 'blockchain,' the signal to sell has arrived.
When everyone on the street is talking about 'blockchain,' and even taxi drivers and market vendors start paying attention to trading cryptocurrencies, it often signals that the market is overheated. At this point, a large number of retail investors flood into the market, pushing prices to artificially high levels, while the main players quietly prepare to offload. Historical experience shows that after such a nationwide frenzy, the market often sees significant adjustments. Therefore, when everyone around you is discussing blockchain and trading cryptocurrencies, you must stay clear-headed and sell your coins in a timely manner.
5. Beware of the chasing-up mentality; be cautious of main players pushing prices up to sell.
In the cryptocurrency market, when you see prices soaring, many people regret not buying in at a low price or buying too little. Main traders exploit the retail investors' itchy desire to chase rising prices, creating traps for them to buy high. They first use their financial advantage to raise prices, attracting retail investors to follow suit, and then quietly offload at high points, leaving the hot potatoes to the retail investors. Therefore, when faced with a significant price increase, remain calm and do not blindly chase after it to avoid becoming a pawn for the main players.
