If you do not 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 community. Next, I will share some advice based on my experience and from some successful friends in the crypto space.
1. Fund management must be on point. With leverage from 0-100x, losing everything in the short term is inevitable. The risk per trade generally should not exceed 2%-3%, and for aggressive traders, it could be 5%-8%. A risk level exceeding 8%-10% can lead to a 70% drawdown in unfavorable conditions, and most people's psychological breaking point is around 50%. Strictly enforce fund management. Many people like to use 5x or 10x leverage, trading on 4-hour or higher charts, where stop losses generally range from 5%-15%, leading to a single trade risk of 25%. Doing so is essentially seeking death. To ensure risk management while using high leverage, the timeframe must be lowered to 1 hour, 15 minutes, or 5 minutes. The smaller the timeframe, the fewer traders can manage it; generally, 1h-4h is the limit for average players, while 5-15 minutes is for professional traders, and 1-minute levels are generally beyond the reach of ordinary professional traders.
2. Trading system must be sound. Refining a trading system requires the accumulation of long-term trading experience. A successful integration is defined by not deviating from the model, with clear conditions. This process needs continuous iteration, experiencing the baptism of bull and bear markets, and due to leveraged trading*, t+0+, frequent trading, one must prepare 90% for tuition fees. Many people start with hundreds of thousands, but it's important to understand that regardless of the initial capital, it is only enough to pay tuition once, and there will be 8 more times afterward. Therefore, it's crucial to start with small capital; a few hundred or a few thousand is fine, and do not touch the capital when you make a profit. When profitable, withdraw funds, and continue to trade with small amounts. At the beginning, the system and operations will not be particularly proficient, and many mistakes and unnecessary actions are unavoidable. Many posts claim losses, but in my view, such losses are meaningless; it’s just paying tuition once, without having even touched the door, and the learning curve hasn’t risen, which is no different from gambling.
3. Execution must be reliable. Similar to last year's event on May 19, misjudging the direction can lead to irretrievable losses. No matter how much you earned before, if you encounter a black swan event like this without overcoming it, it equals zero. Strict stop-loss is essential, and more often than not, liquidations happen from counter-trend bottom fishing, similar to the recent Luna incident, which also involved counter-trend bottom fishing leading to liquidation. Do not gamble on low-probability events, nor should you assume that you can achieve everything in one go.
4. Time and experience accumulation. In a bull-bear market cycle, one needs to be familiar with the characteristics of different market phases and adjust strategies according to market conditions.
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