If you want to trade cryptocurrencies to make money, you cannot rely on luck. Sometimes luck is part of skill, but you need to consistently have that luck.
The current market is fluctuating repeatedly, and the harvesting of retail investors is happening wave after wave. For newcomers to the space, don’t think about making money just yet; think about how to survive this round of major cleansing.
I have been trading cryptocurrencies for a long time and have encountered many pitfalls. I have now summarized a lot of experience; this market has more pitfalls than you think, so you need to observe and learn more to truly adapt to it.
First Rule: If you don’t understand, don’t recklessly touch contracts.
Contracts can not only make you money but can also make you lose it faster.
Newbies are advised to start with perpetual contracts; don’t touch delivery contracts. It’s recommended to keep leverage within 3-5 times to avoid a direct halving of your capital due to a sudden reverse fluctuation.
Every trade should set a stop-loss. For example, with a capital of 8000 yuan, keep single trade losses within 800 yuan. Having a plan means having an escape route.
Second Rule: Choosing the right platform is a baseline, not an option.
Don’t be greedy for small profits by playing with sketchy exchanges; running away, slippage, and liquidation can happen at the most critical moments.
Prioritize choosing leading platforms like Binance, not for any other reason, but for safety.
Also, be aware of fees and funding rates, as neglecting them can lead to significant losses.
Third Rule: Earn "certain money," not "impulsive money."
Don’t be fooled by a 5% rise today; tomorrow a single bearish candle could wipe it all out.
Technically, look for MACD golden crosses, RSI above 50, and consistent moving average directions when considering entry;
Want to catch the bottom? Wait for three solid bullish candles before making a move; want to chase a rise? Don’t chase if the moving averages are too far apart; it’s easy to get trapped.
Fourth Rule: Position size and planning are your only talismans.
Suppose you have 8000 yuan in capital:
First, take 3200 yuan to test; if it drops 5%, cut the trade (loss of 160 yuan);
After it rises, add another 2400 yuan;
Keep the last 2400 yuan flexible, do not touch the principal, don’t go all in, don’t hold positions.
Before taking action, write down your take-profit and stop-loss; otherwise, the next step will just be two words: passive.
For example, if you use 3200 yuan to open a 5x leveraged position on BTC:
Buying price 26000, stop-loss 25700 (loss of 300), take-profit 28000 (profit of 400).
This kind of trading is planned risk management, not a reckless gamble.
A set of correct methods + stable execution + a good team guiding the rhythm.
Is far better than you being busy alone!
If you want to turn things around, those who understand will naturally find me.
