Although I haven't reached someone else's goal of turning 10,000 into two small targets, I am already very content, stable, and dreaming of breaking 100 million by the end of this year, so I can earn more capital next year.
If you are determined to make trading cryptocurrencies your first profession, this article will be your stepping stone, very concise yet profound!
After 10 years of trading, the core trading secret that has allowed me to stabilize my returns.
5 types of batch building models: from conservative to aggressive, there's always one that suits your market.
In the crypto world, 'going all in' is often the beginning of losses, while 'building positions in batches' is key to controlling risk and maximizing profits.
Different market conditions require different position-building strategies; today, I will analyze 5 classic batch building models, from bottom fishing in a downtrend to chasing during an uptrend.
From beginner fixed investments to technical trading, match according to your risk preferences, making sure every penny is spent wisely.
First, pyramid building method: bottom fishing in a downtrend, buying more as it drops to average down.
Core logic: the lower the price, the more you buy, like a regular pyramid structure of 'wide at the bottom, narrow at the top,' using more low-priced chips to dilute the average cost.
Applicable scenarios: at the end of a clear downtrend (like the late stages of a bear market, or when the price drops over 30%), suitable for balanced players who can withstand short-term volatility.
Practical case (taking BTC as an example):
Assuming you prepare 100,000 U as principal, divide it into 4 batches to build positions:
First purchase: when the price is 40,000 U, buy 10% of the funds (10,000 U) — a tentative entry, avoiding buying halfway up the mountain.
Second purchase: when it drops to 35,000 U (a drop of 12.5%), buy 20% of funds (20,000 U) — confirm the pullback trend, start to increase the position;
Third purchase: when it drops to 30,000 U (another drop of 14%), buy 30% of funds (30,000 U) — approaching the historical support level, heavily layout;
Fourth purchase: when it drops to 25,000 U (another drop of 16.7%), buy 40% of funds (40,000 U) — reaching the target bottom, going all in with remaining funds.
Advantages:
A high proportion of low-priced chips at the bottom (the last two purchases total 70% of funds bought at below 30,000 U), once there is a rebound, the profit potential is far greater than a single all-in bet.
Precautions:
You must set a 'bottom range' and not heavily invest at the early stages of a decline (for example, adding a lot when BTC drops from 60,000 to 50,000, which may continue to fall); it's advisable to confirm the bottom with historical support levels, shrinking trading volumes, and other signals.
Second, inverted pyramid building method: chasing during an uptrend, first buying a large portion and then adding.
Core logic: the lower the price, the more you buy; the higher the price, the less you buy, resembling an inverted pyramid structure of 'wide at the top, narrow at the bottom,' which avoids missing out while controlling the risk of chasing high.
Applicable scenarios: clear upward trends (like the early stage of a bull market, breaking through key resistance levels), suitable for aggressive players who are optimistic about the trend but afraid of chasing high.
Practical case (taking ETH as an example):
Prepare 100,000 U as principal, divided into 4 batches to build positions:
First purchase: when the price is 2000 U, buy 40% of the funds (40,000 U) — at the initial stage of the trend, first secure your position to avoid missing out.
Second purchase: when it rises to 2500 U (an increase of 25%), buy 30% of funds (30,000 U) — breaking through the previous high, confirming the trend, moderately adding to the position;
Third purchase: when it rises to 3000 U (another 20% rise), buy 20% of funds (20,000 U) — trend acceleration, follow up with a small amount;
Fourth purchase: when it rises to 3500 U (another 16.7% rise), buy 10% of funds (10,000 U) — approaching the target high, symbolically adding to the position.
Advantages:
Most funds are bought at the early stages of the trend (70% of the first two purchases are below 2500 U), even if there are subsequent pullbacks, the overall cost remains low, making it strong in risk resistance.
Precautions:
In an uptrend, don't 'dare not buy as it rises' (missing the main rise), and also don't suddenly increase your position at the top (for example, adding 40% when it rises to 5000 U, which is easy to get trapped).
Third, grid building method: arbitraging in a fluctuating market, repeatedly buying low and selling high.
Core logic: within a fixed price range, operate in batches according to the rules of 'buy on the way down, sell on the way up,' like a fishing net to 'capture' profit fluctuations in a volatile market.
Applicable scenarios: sideways consolidation market (cryptocurrency prices fluctuate within a range without a clear trend), suitable for flexible players who enjoy high-frequency trading.
Practical case (BTC fluctuating between 20,000 - 30,000 U):
Prepare 30,000 U as principal, divided into 3 segments to build positions, grid spacing of 5000 U:
Set intervals: 20,000 U (lower bound), 25,000 U (middle bound), 30,000 U (upper bound);
Invest 10,000 U per grid: buy 10,000 U when it reaches 20,000 U, buy 10,000 U when it reaches 25,000 U (if it rises first, wait for a pullback);
Operating rules:
When it rises to 25,000 U, sell the part bought at 20,000 U (gain 25%);
When it falls back to 20,000 U, buy back the part you sold;
When it rises to 30,000 U, sell the part bought at 25,000 U (earning another 20%).
Advantages:
In fluctuations, 'buy low and sell high' profits automatically, without guessing the direction, suitable for players who want to profit from volatility but don't have time to watch the market (can be executed automatically with grid bots).
Precautions:
You must set clear upper and lower bounds; once the range is broken, stop immediately (for example, if BTC falls below 20,000 U or rises above 30,000 U, the grid becomes ineffective, avoiding losses in a one-sided market).
Fourth, time interval method: beginner fixed investment thinking, reducing timing pressure.
Core logic: do not look at price fluctuations, buy in batches according to a fixed time, using 'average cost' to counter short-term volatility, suitable for beginners who do not have time to study the market.
Applicable scenarios: long-term optimism without timing (like early stages of a bull market or regular investments in a bear market), suitable for conservative players and office workers.
Practical case:
Plan to invest 100,000 U to buy ETH, divided into 5 purchases:
Invest 20,000 U every Friday for 5 consecutive weeks;
No matter if ETH is 2000 U or 2500 U this Friday, execute on time;
Final holding cost = average price of 5 weeks of purchases, avoiding the risk of 'going all in at a high price in a certain week.'
Advantages:
Completely eliminate the 'anxiety of watching the market,' without having to worry about 'buying today or tomorrow,' long-term fixed investment can dilute the costs over bull and bear cycles (buy more at low prices in bear markets, buy less at high prices in bull markets).
Precautions:
Don't set the time interval too short (like buying every day, as fees will be high), and don't set it too long (like buying once every six months, missing out on low prices); it's recommended to invest weekly or monthly, with a period of 3-6 months or more.
Fifth, technical indicators method: technical players build positions accurately, confirming signals before acting.
Core logic: combine MACD, RSI, moving averages, and other indicator signals to buy in batches, using technical analysis to filter out ineffective fluctuations, suitable for advanced players with analytical skills.
Applicable scenarios: unclear trends but with technical signals (like bottom divergence, breaking the moving average), suitable for aggressive players who can understand indicators.
Practical case (taking the RSI indicator as an example):
Prepare 100,000 U to buy SOL, divided into 3 batches to build positions:
First purchase: RSI drops below 30 (oversold signal), buy 30% of funds (30,000 U) — initial confirmation of the bottom;
Second purchase: when the price retraces to MA60 moving average (medium-term support), buy in 30% of funds (30,000 U) — confirming support level;
Third purchase: the daily line shows 'bottom divergence' (new price lows but RSI does not go to new lows), buy 40% of funds (40,000 U) — trend reversal signal, heavily entering.
Advantages:
Use technical signals to improve the success rate of position building, avoiding 'buying based on feelings,' and ensuring each purchase has clear logical support.
Precautions:
Don't rely on a single indicator (like only looking at RSI oversold to buy, which may continue to be oversold), it's recommended to combine 2-3 indicators for resonance (like RSI + MACD + Moving Averages) before taking action.
How to choose? Match according to risk preferences.
Lastly, I want to say:
The core of building positions in batches is not to 'buy at the lowest,' but to 'control risk' — allowing you not to panic during declines (having funds to average down), not to be greedy during rises (having profits as a cushion), and to make money during fluctuations (grid arbitrage).
There is no best model, only the strategy that suits you best: beginners start with time interval methods, advanced users use technical indicators to strike precisely; remember: being able to control your hands and execute according to rules is more important than selecting the right model.
Making money in the crypto world does not rely on 'one successful bet,' but rather on 'stability at every step,' choosing the right position-building model to let your funds grow like a snowball.
If you get trapped during trading, how do you get out?
Resolving a loss, as a crypto term, refers to the price of the coin rising back to around the purchase price to sell the cryptocurrency and recover the funds. Learning how to get trapped is the first step to learning how to hunt; learning how to resolve a loss is the first step to truly understanding trading.
Now I will introduce the methods of resolving losses, generally divided into two types.
First, active resolution strategy.
1. Cut loss
If you discover that the purchase was a serious mistake, especially buying at the peak of an explosive bull market, you need the determination to cut losses decisively and sell to secure your funds. The crypto market has many opportunities, as long as your capital doesn't suffer major losses, you can always earn it back.
2. Change coins
When the cryptocurrencies in hand are trapped and in a weak position, and still have room to fall, if you accurately judge that another cryptocurrency has a higher potential for future gains and a stronger trend, you can decisively switch to the new coin to offset losses from the old one.
3. Short selling.
When you determine that you are deeply trapped and cannot cut losses, and the market or a particular cryptocurrency has further downside potential, you can adopt a short selling strategy, selling the trapped coins first and then buying back at a lower price to effectively lower costs.
Second, passive resolution strategy.
1. Averaging down
When the buying price is not high or you have firm confidence in the future market, you may choose to use the averaging down technique. However, ordinary investors usually can only withstand one or two rounds of averaging, so the timing for averaging is crucial.
2. Lie flat
Being deeply trapped with a full position, unable to cut losses or add to positions, you can only passively wait. As long as it’s your own money, not borrowed or lent, you can wait patiently. Never act emotionally, impulsively cutting losses or blindly averaging down.
The essential formula for the fourth wave of the bull market in crypto: Principal > Chips > Consensus > Technology > Human Nature.
Recently, the number of people paying attention to the fourth wave of the bull market in crypto has been very high.
The reason that resonates with most people in the market is actually very simple.
It's all because BTC broke the previous high, and then the altcoins started to rally collectively.
Moreover, many long-silent altcoins have revived: life.
Leverage the heat of the market to share an extremely important formula in the crypto world.
Principal < Chips < Consensus < Technology < Human Nature; this is the core that runs through the bull and bear cycles in crypto.
If through this article today, you can understand the relationships involved.
Congratulations! You have already developed the correct investment mindset and concepts.
Then in your subsequent cryptocurrency trading process, you will definitely achieve more with less effort.
First, let's talk about the principal.
This is easy to understand; it's the current amount you've invested; this value will change.
Because most people invest only when they see the market is good, they begin to borrow in various ways.
This varies from person to person, but the amount of capital and the investment strategies used are completely different.
Many people lose money because they ignore the importance of position management.
Sometimes the reference point you have may be someone else's capital that is several times yours.
But you can also completely replicate the entry methods of others.
In the end, others made money, but you lost.
Most people think they lose money because they don’t understand technology, but in fact, it's because they don’t understand position management.
Second point: Chips.
Chips refer to: cryptocurrencies, in the crypto world, they are referred to as coins.
Only by buying coins can you trigger the results of making or losing money.
One thing that must be understood in the crypto world is: making money requires buying the right chips.
To increase the probability of making money, you need to buy coins that are heavily accumulated by major players.
Instead of relying on feelings, buy certain cryptocurrencies that others casually recommend without careful selection.
The reason I do not recommend everyone to trade cryptocurrencies this way is very simple.
First, you can't hold on when it rises; second, when it falls, you start to fall in love.
Third point: Consensus.
The consensus here specifically refers to the bull and bear cycles.
Many people think that consensus refers to the number of holding addresses; that's part of it.
But today I want to say that the consensus related to us ordinary people is simply the consensus of bull and bear markets.
Only when retail investors and major players reach a consensus on a bull market can they buy in madness.
Only then can a large bull market cycle of 4 years in the crypto world be brewed.
So this consensus is even more important compared to the previous two.
Only when the trend arrives can you achieve more with less effort.
Fourth point: Technology
Technology refers to the ability to identify bull and bear cycles.
This is the only way for newcomers to overtake on a curve.
Never think that you can take money out of the crypto world without studying, investing effort, or working hard.
In the long history of the past, no one has ever been able to take money from the crypto market purely by luck.
Those who can truly make money and keep it.
It all consumes time, energy, and resources, ultimately summarizing a system that belongs to oneself.
As long as you take some time to check, you can find answers from the big players in the crypto world.
Fifth point: Human nature.
This is the final checkpoint that truly determines whether you can make money.
Countless people have fallen victim to human nature: greed, anger, ignorance, slowness, doubt, and the present.
Many people repeatedly fail in both bull and bear markets.
In fact, the most terrifying thing is the lack of understanding of human nature.
They are always trying to find shortcuts, methods, and capital.
But never once deeply thought or summarized.
Ask yourself if you are satisfied with the current results? Do you really have confidence in the future bull market?
Many people think they are always talking about practical tips and want to know where to buy and sell.
Unbeknownst to them, this only satisfies their inner greed for easy gains.
This will only take you further down the wrong path.
I have been sharing these investment thoughts, correct concepts, and insights.
The goal is to reveal the truth about making money.
The money you can see is all small money; only by cultivating your inner value can you become a possessor of wealth.
Today I have shared with you the key to navigating through bull and bear cycles: Principal < Chips < Consensus < Technology < Human Nature.
I was lucky to meet a benefactor, which allowed me to completely understand!
Many people have lost money trading cryptocurrencies dozens of times and still haven't realized: this market is not about luck, but about understanding! I was once a novice too, until I met an old mentor who made millions from tens of thousands!
He said: 'The moment you truly understand trading cryptocurrencies, your thinking is reshaped, the rhythm is corrected, and the market becomes transparent to you.'
I didn't understand it back then, but now, I completely get it!
I may not be the best at trading cryptocurrencies, but I have maintained stable profits for 10 years! I don’t rely on luck, but on systematic thinking + trading logic!
Your loss is not due to a lack of skill, but because your thinking is stuck!
I used to get dizzy just watching the K-line; now I read the market like a story, interpreting the intentions of the main players with every fluctuation!
The following practical tips, if not shared, would be unfair to the brothers who are continually losing: Focus on the long and short: keep an eye on the day's high and low points; breaking through the previous day's extremes = directional change signal.
Look at the strength: A rise does not equal a trend; if it hasn't broken through key levels, it could be a trap.
Look at the amplitude: Amplitude widening = opportunity is coming; shrinking to the limit = the eve of a trend change.
Look at the charts: watch support and resistance on the daily K-line; if they don't change, follow the rhythm; if they do, adjust the strategy.
Look at the trend: if the overall trend is down, be cautious of short positions; if the overall trend is up, be careful with short selling!
Another phrase to remember: When the Bollinger Bands open, look for a trend; when they constrict, look for volatility; when the bands turn, it signals a pullback or rebound!
I only speak the truth: the market is not short of opportunities; it's just that you don't know how to play! The moment you truly understand, you'll find that making money is really not as difficult as you think!