#稳定币热潮 Having been in the field of digital currency for over a decade, I went from frequently facing liquidation to now supporting my entire family's economy through cryptocurrency trading, achieving the dream of financial freedom. Looking back at 2024, my investment capital has achieved an astonishing 50-fold growth; had I not diverted some funds to purchase real estate midway, this figure could have reached 85-fold.
Here, I am willing to selflessly share the trading strategies and insights I have explored in the cryptocurrency circle with like-minded friends.
It is often said that standing on the shoulders of predecessors allows our journey to be smoother. I hope these experiences can help you walk fewer detours and reach success more quickly in the world of digital currency.
Three things you must not do when trading cryptocurrencies:
1. Don't chase prices; learn to operate in the opposite direction.
Many people always want to 'chase the trend.' When they see prices rise, they rush in, only to end up getting trapped. Remember: be fearful when others are greedy, and be greedy when others are fearful. A price drop may actually be a good opportunity to buy at a bargain; cultivate the habit of buying at lows.
2. Leverage is a double-edged sword; use it cautiously!
Leverage can amplify profits, but it can also lead to immediate liquidation. For example: with 10x leverage to buy 10,000, a 10% drop in price will lead to zero. Instead of thinking about 'getting rich overnight,' it’s better to practice with your own funds and use leverage cautiously once you gain experience.
3. Never go all-in.
Putting all funds on one position leaves no room for retreat if the direction is wrong. The market will always present new opportunities; going all-in may come with a cost much higher than imagined — for instance, missing out on other potential profit points.
Three major tricks to make money in the cryptocurrency circle: stability, swing trading, leverage.
Steady route
Suitable for the average player: Focus only on mainstream coins like BTC and ETH, timing purchases at lows, making monthly investments, and holding long-term for 1-2 years to cash out profits when a bull market arrives.
Swing trading
For the experienced you: Capturing obvious market trends, buying low and selling high is the way to go.
The strategy is: go with the trend, don’t be greedy when prices rise, don’t panic when they fall, and remember to take profits and set stop-losses.
Leverage contracts
High risk, high reward: If the direction is correct, one can make a quick fortune; if the direction is wrong, one must bear significant losses.
In the current market, strictly manage risks; don’t recklessly go all-in; avoiding mindless trades is the hard truth.
Contract gaming in the cryptocurrency circle, betting small to gain big, a teaching secret to make one hundred thousand from ten thousand, an entry point for beginners.
A thousand-fold contract may seem risky at first glance, but in reality, it is the investment variety with the richest profits and the highest win rate for me. Initially, I was puzzled, but I gradually understood that this was mainly due to my unintentional adherence to a clear set of trading rules.
Total position setting: The funds I use for contract trading are always fixed, for example, the funds for one account are always 300U. This means my maximum loss is 300U, and once the market moves in my favor, I have the opportunity to gain tens of thousands of U. This setting allows me to keep risk controllable while seizing profit opportunities from major market movements.
Starting amount: The amount I start with in trading is always very low, based on the philosophy of stock trading master Livermore. He believed that if you're right from the start, it’s best to start making money right away. Therefore, the amount I start with is always very small; even if the total position is 300U, the starting amount is often just a single-digit or double-digit U, ensuring that I am in a profitable state from the beginning of the trade.
Position adding strategy: I only use profits to add to my position when profits appear and trends are clear. This strategy allows me to further amplify profits when the market trend is favorable while avoiding increasing risks in unfavorable market conditions.
Stop-loss setting: I adjust the stop-loss position in a timely manner based on market conditions to ensure that I do not lose my principal. This is an important principle I adhere to in trading; it helps me remain calm amidst market fluctuations and avoid emotional trading decisions.
These four rules have unconsciously made me strictly adhere to trading discipline, and the logic behind them is also applicable to ordinary low-multiplication contracts, as the principles are the same. Of course, before starting, I still want to remind new players:
Contract trading is not a game, especially for those who think there are certain contract skills or contract masters who can predict prices. Do not blindly believe that simply following them will lead to big profits; such thoughts should be avoided. I certainly do not have any secret that will make you wealthy upon hearing it. Moreover, contract trading tests human nature; unless you can stick to using very little money, like 100U or 300U, this fits the strategy of 'betting small to gain big,' not 'betting big to gain small.' What I share are methods that I hope will provide some reference for contract traders, and that’s all.
As for the main technical aspects:
First, transfer USDT into the trading account of the exchange, but the total amount should not exceed 300U. This amount is set based on my personal ratio of trading funds. Generally, you can also use 1% of total funds as a principle to determine the trading amount, but do not exceed 300U for each trade (this limit only applies to thousand-fold contracts).
Additionally, I do not actually recommend trading methods like hundred-fold contracts due to their high risk and low cost-effectiveness. Either choose low-multiplication contracts below 5X and hold large positions, or choose high-multiplication contracts of 500-1000X and trade with very small positions. It is best to choose only the latter, since contract trading inevitably leads to liquidation, and even low-multiplication contracts are no exception. A thousand-fold contract either results in a liquidation of 300U or a huge profit; overall, the risk-reward ratio is extremely high.
Therefore, if you grasp the correct method, a thousand-fold contract is likely to make money. However, without an ADL liquidation mechanism, exchanges are likely to wipe you out. Previously, my group friends and I exploited the thousand-fold contracts on Exchange A to the point of directly going offline...
I want to emphasize: the essence of contract trading is to bet small to gain big, not the other way around.
Additionally, due to the extremely high leverage of thousand-fold contracts, transaction fees and funding fees have become relatively minor; whether you can open the right position is the most important. Moreover, the transaction fees for thousand-fold contracts are much cheaper than other contracts under the same ratio. From another perspective, contract trading is actually borrowing money to open a position, and the borrowed money only needs to pay interest. If liquidation occurs, there’s no need to pay back, which is actually a very good investment target.
Of course, if you don’t trade according to my rules, the speed of your losses will also be very fast.
Second, starting techniques.
Assuming BTC is at 16500U now, it has been fluctuating for a long time, and I still hold a bearish outlook, anticipating a major market movement. I suggest starting with 4U at 500X. Note, that is 2U from within 300U.
Once you open a position, don't worry about the ups and downs unless you face liquidation. Just watch the show and stay calm — it’s like choosing a direction before you open. Ideally, you should have over 70% confidence in the short term, and it’s best to anticipate a significant market movement.
Today's sharing: Detailed explanation of commonly used technical indicators: KDJ patterns, MACD charts, and EMA moving averages are tools of technical analysis.
As the ancients said, 'Reading thousands of books is not as good as traveling thousands of miles; traveling thousands of miles is not as good as having a famous teacher guide you.' In the field of digital currency, this saying is even more precious. Little do people know that accumulating information and broadening their knowledge is the first step to acquiring wisdom.
However, the cryptocurrency market is volatile and full of uncertainties. It is difficult to cope with practical challenges based solely on theory. Only by being on-site can one truly understand the hardships of moving forward. Walking a thousand miles may be shocking or invigorating, but it is fraught with dangers, like walking on thin ice.
However, if one can receive Sunny's careful guidance, they can avoid falling into pitfalls, manage risks, and take advantage of opportunities, thus being able to walk independently in this vast world. Sunny is willing to explore the mysteries of digital currency with everyone, expanding the investment path together, not wasting the brilliance of the golden age; may you all pick up the banner of struggle and follow Teacher Sunny on this challenging and opportunistic journey.
Let us sail forward together and write your own brilliance!
KDJ patterns, MACD charts, and EMA moving averages are commonly used tools in technical analysis for predicting market trends and formulating trading strategies. Below are detailed explanations of these three concepts by Li Hui.
First, let’s talk about the KDJ pattern. The KDJ indicator is a technical indicator used to measure the overbought and oversold conditions of coin prices or other trading assets. It consists of three lines: the K line, the D line, and the J line. The K line represents the ratio of the closing price to the lowest price over a recent period, the D line is a smoothed line calculated based on the K line, and the J line is calculated based on the values of K and D lines. The values of the KDJ indicator usually fluctuate between 0 and 100, with values above 80 indicating overbought conditions and those below 20 indicating oversold conditions.
The KDJ pattern chart can be illustrated through the KDJ line of the cryptocurrency you want to trade. When the K-line crosses above the D-line from below, and the KDJ indicator value is below 20, it indicates that the coin price is in an oversold state, making it a good buying opportunity. Conversely, when the K-line crosses below the D-line from above, and the KDJ indicator value is above 80, it indicates that the coin price is overbought, making it a good selling opportunity.
Next is the MACD chart. MACD (Moving Average Convergence/Divergence) is a trend indicator that measures price fluctuations. It consists of two lines and a histogram: the DIF line, the MACD line, and the histogram. The DIF line is the difference between the short-term exponential moving average and the long-term exponential moving average, while the MACD line is the exponential moving average of the DIF line. The histogram represents the gap between the DIF line and the MACD line.
MACD charts can judge market trends by observing the relationships between the DIF line, MACD line, and histogram. When the DIF line crosses above the MACD line and the histogram turns positive from negative, it indicates that the coin price is in an upward trend, signaling a buying opportunity. Conversely, when the DIF line crosses below the MACD line and the histogram turns negative from positive, it indicates that the coin price is in a downward trend, signaling a selling opportunity.
Finally, here is the EMA moving average chart. EMA (Exponential Moving Average) is an indicator that smooths out coin price trends. It calculates the average price of the coin over a recent period based on certain weighting factors. Compared to other moving averages, EMA is more sensitive and can respond to price changes more quickly.
The EMA moving average chart can be judged by observing the relationship between the coin price and the EMA line to determine market trends. When the price is above the EMA line and the EMA line is trending upwards, it indicates an upward trend, signaling a buying opportunity. Conversely, when the price is below the EMA line and the EMA line is trending downwards, it indicates a downward trend, signaling a selling opportunity.
In summary, Sunny believes that KDJ patterns, MACD charts, and EMA moving averages are important tools for technical analysis and trading decisions. By understanding and utilizing these tools, traders can more accurately predict market trends and make corresponding trading decisions. However, Li Hui reminds everyone that these tools are merely auxiliary; trading strategies cannot be determined solely by them and must also be combined with news and other factors for comprehensive analysis.
People often say that when the tide goes out, you can see who has been swimming naked.
In the wave of blockchain, we see the light of the future; those WEB3 explorers heading for the stars and the sea are leading a profound transformation.
May every traveler: have less anxiety about getting rich quickly, more patience for changing the world; have fewer calculations of zero-sum games, more wisdom for building ecosystems; maintain enthusiasm while not losing rational judgment.
In this great social experiment, may we become friends with time, steadfastly hold onto the anchor of value, and be the faint light that illuminates each other's path. Stay away from the noise of speculative bubbles and delve deep into value creation, together writing the chapters that belong to the future.
Here are a few points that I hope will be helpful to everyone:
1. Mindset is king; emotions are pitfalls. Trading cryptocurrencies is not about IQ, but about mindset! When a crash happens, a collapsed mindset leads to panic selling, only to find the next day the coin price rebounded, leaving you regretting it. Stay calm and discard emotional trading; every decision must be rational and clear-headed. A stable mindset leads to stable wealth!
2. Stop-loss and take-profit, double insurance. A trade without a stop-loss is like driving recklessly without a seatbelt; a crash is just a matter of time! Set stop-loss lines decisively based on technical indicators (such as breaking key support) or fundamentals, and never hesitate. When reaching expected profits, don’t be greedy; take profits promptly to secure them. A dual approach is essential for lasting success!
3. Trade with the trend; going against the market is a sure way to fail. The market is the boss, and fighting against it will only lead to self-destruction! Act decisively when the trend is clear, such as entering when breaking through resistance, and immediately retreat when the trend reverses. Don’t fantasize about catching the bottom or the top; following the trend is the way to go. Remember: make big money with the trend, and you’ll lose your head against it!
4. Review and learn, evolve into a master. Trading cryptocurrencies is not about luck and throwing money; it’s a technical skill! Review daily trades, find the logic behind profits and losses: what went right and what went wrong. Keep an eye on industry dynamics, study technical indicators, and continuously upgrade your judgment. If you can't learn to review, you'll always be the market's fodder!
After ten years of exploring digital currencies, I have distilled six unwavering rules, concise yet full of wisdom. If you desire to have a winning hand in the cryptocurrency circle as a retail investor, drawing on the experiences of predecessors is a shortcut that can help you avoid pitfalls; quickly like and collect this for future use.
Upon entering the cryptocurrency circle, the first priority is to maintain a clear understanding and grasp the operational logic behind each trade. New coins emerge like bamboo shoots after rain, often hiding the layouts of large players behind them, who profit from market fluctuations. As a newcomer, one must have self-awareness, realizing that they may be the 'grass waiting to be harvested,' but there is no need to fear; this is a trial ground for growth.
Once you muster the courage to take the first step, victory is already halfway to you. The word 'fate' is seen by the weak as an excuse and by the strong as a boost. What truly rewrites fate is not random chance, but the courage to seize good opportunities and our proactive attitude. Destiny is never biased, but has a special affection for those who 'strive relentlessly'!
