In 2025, the most common question I was asked was: "Poison Brother, I am already in my 30s, as a novice, is the cryptocurrency market really suitable for me to turn my life around?" My answer to him was: If you don't have a special skill or a stable job, then the cryptocurrency market might be your best opportunity in the next 5 years!
I think this question also troubles many brothers in the crypto circle. Next, I will share some suggestions based on my own experiences and those of some very successful friends in the cryptocurrency space.
1. Capital management must be in place. With leverage from 0-100x, short-term losses are inevitable. The risk per trade should generally not exceed 2%-3%, while aggressive players may go for 5%-8%. A risk threshold over 8%-10% could lead to a drawdown of 70% during adverse periods, and the average person's psychological breaking point is around 50%. Strict capital management must be enforced. Many people prefer to trade at 5x or 10x leverage and operate on time frames above 4h, where stop losses are generally between 5%-15%, resulting in a risk per trade of 25%. Trading like this is akin to looking for death. To ensure risk levels are maintained while also opening up high leverage, the time frame must be reduced to 1 hour, 15 minutes, or 5 minutes. The smaller the time frame, the fewer players can handle it; generally, the limit for average players is 1h-4h, while 5-15 minutes is manageable only for professional traders, and even professional traders typically cannot handle the 1-minute time frame.
2. The trading system must be sound. Refining a trading system requires a long accumulation of trading experience. A successful system is marked by not operating outside the established model, with clearly defined conditions. During this process, continuous iteration is needed, undergoing the baptism of bull and bear market fluctuations in mainstream assets. Since this is leveraged trading, T+0, and frequent trading, one must prepare for 90% tuition fees. Many people start with hundreds of thousands to trade but need to understand one thing: no matter the starting capital, it is only enough to pay for tuition once, followed by 8 more times. Therefore, it is necessary to start with a small amount, even a few hundred or a few thousand. Do not touch the capital just because of profits; withdraw profits and continue trading with small amounts. At the beginning, the system and operations will not be particularly refined, and many mistakes and excess actions will be unavoidable. Many posts mention how much they lost, but in my view, such losses are meaningless; it is just paying tuition once without even reaching the door, and the learning curve hasn't improved, which is no different from gambling.
3. Execution must be in place. Similar to last year's 519 incident, betting on the wrong direction can lead to irrecoverable losses. No matter how much you earned before, as long as you encounter a black swan event like this without recovering, it equals zero. Strict stop-loss is a given; more often than not, liquidation happens from counter-trend bottom fishing, such as the recent Luna incident, which was also a counter-trend liquidation. Do not gamble on low-probability events, nor think you can achieve everything in one go.
4. Time and experience accumulation. In a round of bull and bear markets, it is necessary to become familiar with the market characteristics of various products at different stages and adjust strategies based on market conditions.
