When I first entered the cryptocurrency market, I turned a principal of 50,000 into a profit of about 4 million. After graduating from university, I never officially worked, and I have been enjoying life in Kunming and Dali, not buying a house or a car, spending only a few thousand yuan a month on daily expenses. So, how did I achieve wealth growth in the cryptocurrency market?
My 50,000 principal accumulated during college by participating in various projects, such as affiliate marketing, order brushing, delivery services, APP crowd-sourcing, and various small tasks, saved up this starting capital little by little. After having the principal, I entered the cryptocurrency market. Considering the high price of BTC, I focused on ETH+ (because ETH has leverage) and altcoin spot trading. During the investment process, I consistently adhered to a strategy of selecting coins and reasonable position management. In simple terms, I executed the established ideas consistently: when the market is poor, try to control losses; when the market arrives, I can reap generous profits.
My initial entry into the cryptocurrency market stemmed from a strong desire to change my fate. I firmly believe that if one cannot succeed in such an opportunity-rich environment like the cryptocurrency market, it will be even harder for ordinary people to change their fate.
As a seasoned investor who has experienced three rounds of bull and bear markets, I would like to share some key points on investing in cryptocurrency, especially to clarify what absolutely should not be done:
Steer Clear of Contracts, Holding Positions, and Shitcoin Projects: Contract trading carries extremely high risks, holding positions often leads to unlimited losses, and most shitcoin projects are worthless scams. Once trapped, your funds could be wiped out.
Avoid Frequent Buying and Selling and Chasing the Market: Frequent trading not only increases transaction costs, but chasing the market can easily trap people in emotional pitfalls, ultimately leading to investment failure. In the cryptocurrency market, it is crucial to remain calm and rational.
Diversify Storage of Cryptocurrency Assets: Never store all your cryptocurrencies in the same wallet address or exchange. This centralized storage method is extremely risky; if the wallet or exchange encounters security issues, such as a hacker attack or going bankrupt, your assets could vanish instantly, with risks far exceeding that of futures leveraged trading.
Next, I will share some practical strategies for investing in cryptocurrency:
Coin Hoarding Method: The coin hoarding method is a simple yet highly challenging investment strategy, suitable for both bull and bear markets. The operation method is straightforward: buy one or more coins and firmly hold them for six months or even over a year. From past experiences, this strategy's minimum return usually reaches tenfold. However, beginners often find it hard to resist the temptation of market fluctuations. When they see significant profits, they might be unable to resist selling for profit; when the coin price plummets, they easily feel fear and want to change positions or exit. Many people find it hard to go a month without trading, let alone stick to it for a year, so this is considered one of the most challenging strategies to execute. It is recommended to choose potential coins like EOS or ADA, or invest a portion of funds each month that won't affect daily life.
Bull Market Buying on Dips Method: This method is only applicable in a bull market. Investors can take out a portion of spare funds, preferably no more than one-fifth of the total funds. This strategy is suitable for coins with a market cap in the range of 20 - 100, as these coins, even if caught in a downturn, are expected to break even in a relatively short time. Specifically, when you buy the first altcoin, if its price rises by 50% or more, you can consider swapping it for another coin that is in a significant downtrend, and continue this cycle. Of course, the premise is that the chosen coins cannot be too poor. However, this method is more challenging for beginners and should be approached with caution. When buying, it's best to consult experienced experts to judge whether you are in a bottom area. If you buy at a high price, not only is it difficult to make profits, but beginners are also likely to cut losses due to pressure. Be sure to choose coins with a market cap in the range of 20 - 100, and invest no more than one-fifth of the total funds.
Hourglass Switching Method: This method is also applicable in a bull market. In a bull market, funds flow like a huge hourglass, gradually entering various cryptocurrencies, usually starting with large market cap coins. The price rise has a clear pattern, first leading coins like BTC, ETH, DASH, ETC rise first; then mainstream coins like LTC, XMR, EOS, NEO, QTUM start to follow; then generally, coins that have not yet risen, such as RDN, XRP, ZEC, etc., rise; finally, various small coins perform in turn. Therefore, after the leading coins like Bitcoin rise, investors can select the next tier of coins that have not yet risen to start building positions.
Pyramid Bottom Buying Method: This method is suitable for accurately predicting a massive market downturn. The specific buying operation is as follows: buy one-tenth of the position at 80% of the coin price, buy two-tenths at 70%, buy three-tenths at 60%, and buy four-tenths at 50%. This bottom-buying method is quite rational but requires investors to have the ability to accurately judge the bottom price.
Moving Average Method: Using the moving average method requires investors to have a certain foundation in candlestick charts. The indicator parameters are set to MA5, MA10, MA20, MA30, MA60, and choose a daily line level. If the current price is above the MA5 and MA10, you can continue to hold; if the MA5 falls below the MA10, you should sell the holdings; when the MA5 rises above the MA10, you can buy to build a position. However, for beginners, mastering candlestick chart knowledge is not easy, so this method is not very suitable for novice investors.
Aggressive Coin Hoarding Method: This method is suitable for operating long-term quality coins that you are familiar with. Investors need to have a liquid fund, for example, when a coin currently costs $8, you can place an order to buy at $7. After the purchase is successfully executed, place an order to sell at $8.8, hoarding coins by profiting from the price difference. Afterwards, the liquid funds can continue to wait for the next opportunity and dynamically adjust the order price based on the current price. The calculation formula is: entry price = current price × 90%, selling price = current price × 110%. Since the price of coins can surge or plummet in an instant, the core of this method lies in placing reasonable orders.
Aisle Violent Compound Interest Method: Investors can continuously participate in ICO projects. When a new coin rises by 3 - 5 times, withdraw the principal and invest in the next ICO project, while keeping the profits in the project, continuously repeating this cycle. For beginners, it is recommended to join a professional team and operate under the guidance and advice of the team. Because participating in an ICO without understanding the relevant knowledge is akin to throwing money away.
Cyclic Band Method: Investors can choose coins with significant price volatility like ETC, gradually increasing their positions as the price continually falls, buying more as it dips. Once profitable, sell and continuously repeat this process.
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@加密大师兄888 Clear market observation gives you the confidence to operate. Steady profits are far more practical than fantasizing about getting rich quickly.
