From my personal experience, making money by trading cryptocurrencies is the simplest and fastest way! Let me talk about myself first, I was born in 1985, and entered the cryptocurrency market in 2018, where I made my first 10 million right away. After that, I got carried away, and lost all the money I made, including more than 3 million of my parents' hard-earned savings. I also borrowed 5 million from relatives and friends to invest, and lost all of that as well, ending up with a total loss of over 8 million. My whole family was on the brink of collapse, and my beloved wife was constantly fighting with me over this, threatening divorce. Under such great pressure, I had several moments where I considered jumping off a building to end it all. Fortunately, I remained determined at that time, believing I could earn it back!
After several years of adjustment, I began to resign and trade cryptocurrencies. I swore to my wife that if I didn't earn it back... Then I began to devote myself wholeheartedly, summarizing the mistakes I made before, analyzing the points of operational error, and observing the thoughts and techniques of trading masters. Eventually, I started to stabilize, and turning losses into profits is genuinely not easy! The account began to break even, combining contract and spot trading, no longer blindly rushing in and out, but planning the account well. A combination of medium and short term is the best way to compound!
Later, I secretly borrowed 200,000 from my wife's family. I spent two years turning that 200,000 into tens of millions. Since then, my wife has looked at me differently, and from the moment I made money, I became assertive. My wife became like a well-behaved child, obedient to me!
Regarding my own experience, I divide it into four stages based on time. The first stage (2018-2019). The ignorant are fearless, making money until losing reason.
Entering the cryptocurrency circle in 2019, I caught the bull market with an initial capital of 100,000, peaking over 10 million. Two currencies left a deep impression, one being GXS, where I participated in the private placement with 2 BTC at a price of 6,000 each, and the opening was 3 million. The other was AntShares (later renamed NEO), where I bought 10,000 pieces at a price of 1 each, which later rose to over 1,000, meaning a single currency exceeded 10 million. Then I got carried away, feeling invincible, and thought, why not set a small goal of earning 100 million, and once I earn that, I won't play anymore. Then... I ended up with a story of 'a person full of desire, feeling invincible, taught a lesson by the market until completely defeated.'
Phase two (20-21). Reflect on oneself, start anew
In 2018, the market entered a downward cycle. Watching my hands full of altcoins and a bleak future, my mood fell to the bottom, and I would berate myself daily. However, the market doesn't care about your pain and won't give you a break. Therefore, this stage is more about reflecting on oneself and understanding the market. After a period of adjustment, I realized two truths. First, no one is superior to anyone else; we are all ordinary people. The reason I made money in 2017 was not because I was excellent but simply because the market was too good, and I was lucky enough to stand on the trend, in other words, I was just a pig on the wind, and taking off was inevitable. The second is about controlling funds. Small funds have their way of playing, and large funds have their way too. You cannot use small fund thinking to play with large funds; otherwise, it will end very badly. After figuring this out, I adjusted my mindset and did a new allocation of the chips in my hands, clearing most altcoins and replacing them with BTC, ETH, and USDT.
Phase three (21-22). Reasonable allocation, timely profit-taking
After undergoing a complete bull and bear phase, the mindset becomes much calmer. Moreover, the cryptocurrency market has entered a rising cycle again, so assets begin to appreciate continuously. At this time, what you do more is actually taking profits and continuous reallocation. Therefore, relatively speaking, it is not as intense as 2017. Maybe it's because I'm older, I feel that being plain and simple is the real thing.
Phase four (22-?). Cultivate inner strength, believe in the future
I firmly believe in the future of the cryptocurrency circle, and surpassing past highs is inevitable. Currently, we only need to do one thing: do not exit the market, keep holding quality assets, and we will surely reap abundant rewards in the future.
If you want to trade cryptocurrencies for a lifetime but do not understand the technology and cannot find a suitable trading method, then you might as well try this 'foolproof' operation. It is simple and practical, even if you are a newcomer, you can easily operate it, with an accuracy rate of over 80%. This method can be used for buying and selling in the cryptocurrency circle! It is recommended to save it.
Is it difficult to make money trading cryptocurrencies?
If you haven't found a method, it can indeed be very difficult, but if your method is correct, you will find making money is so easy.
The method I share with you today is actually very simple. Even if you are a novice in the cryptocurrency circle, as long as you strictly follow this method, you can easily make money.
First, we need to set the moving averages on the K-line chart to three moving averages: the 5-day moving average, the 15-day moving average, and the 30-day moving average. The 30-day moving average is the lifeline, a strong support or resistance. Then, transactions can be conducted based on these three moving averages.
1. The chosen cryptocurrency must be in an upward trend; of course, those that are in consolidation are also acceptable, but those in a downward trend or where the moving averages are all pointing down should definitely not be chosen.
2. Divide the funds into three equal parts. When the cryptocurrency price breaks through the 5-day moving average, buy in lightly with 30%. When the price breaks through the 15-day moving average, buy another 30%. Similarly, when breaking through the 30-day moving average, buy the final 30%. This requirement must be strictly enforced.
3. If the price does not continue to break through the 15-day moving average after breaking through the 5-day moving average but instead pulls back, as long as it does not break the 5-day line, maintain the original position. If it does break, sell out.
4. Similarly, if the price breaks through the 15-day moving average but does not continue to break through, maintain the position as long as it does not break the 15-day moving average. If it breaks, first sell 30%, and as long as it does not break the 5-day moving average, continue to hold the remaining 30% on the 5-day moving average.
5. When the price continues to break through the 30-day moving average and then pulls back, sell according to the previous method.
6. Selling is the opposite. When the price is at a high level and breaks below the 5-day line, first sell 30%. If it does not continue down, hold onto the remaining 60%. If the 5-day, 15-day, and 30-day lines all break, sell everything; do not harbor any illusions.
In the cryptocurrency circle, true experts are not necessarily technically skilled; I have always strictly followed the iron rules of the market:
First, for those complex situations and cryptocurrencies that you cannot see clearly, do not rashly enter. Pick the soft persimmon first; trading cryptocurrencies is no different.
Second, do not invest all your money in one cryptocurrency at once, even if you are very optimistic about it, and even if you prove to be right later. Because the market can change in an instant, and no one knows what will happen tomorrow.
Third, if you mistakenly buy a cryptocurrency that is in a downward trend, you must quickly sell it to avoid further losses.
Fourth, if the cryptocurrency you bought has not yet lost but is already in a downward trend, you should also quickly exit and observe.
Fifth, for cryptocurrencies that are not in an upward trend, it is advisable to pay less attention to them. No matter what happens in the future, do not accompany the main force to build positions. Retail investors do not have time to engage in prolonged battles.
Sixth, do not fantasize that you can make money by frequently trading. Entering and exiting daily may bring you pleasure, but it will cost you a lot of money. The only ones who benefit are the exchanges, and you are not that skilled; you are not a market maker. Do not buy too many cryptocurrencies; it is best not to exceed 10. You do not have the energy to monitor them all. It's like wanting to marry five wives; even if you are fit enough, you cannot satisfy all of them. The story of Wei Xiaobao only happens in novels.
Seventh, just because a cryptocurrency is very cheap and has dropped a lot, it is not a reason for you to buy it; it is never!!! It could get even cheaper!!! Eighth, just because a cryptocurrency is very expensive and has risen a lot does not mean you should refuse to buy or sell. It could rise even higher!!!
Only use one trick: (master these 6 essential trading indicators in the cryptocurrency circle). This trick has been compiled through tens of thousands of practices. Last year, at the end of the year, I played with 200,000, and now I have 8.8 million, easily making a profit.
1. MACD
MACD measures the convergence and divergence of two moving averages of asset prices over time.
MACD indicates the value separation between two moving averages with different calculation periods.
When the MACD line crosses the signal line from below to above, the trend will be bullish.
When the MACD line crosses the signal line from above to below, the trend will be bearish.
2. RSI
RSI is an oscillating indicator that reflects the relative strength between upward and downward trends.
RSI indicator around 30 level: reflects oversold levels.
RSI indicator around 70 level: reflects overbought levels
To draw an upward trend line on the indicator, you need to connect two or three or more peaks of the RSI indicator, just like when HH points appear.
On the other hand, draw a downward line by connecting three or more peaks; these points are declining.
3. Bollinger Bands
Bollinger Bands are one of the most widely used trading indicators.
Used to compare the price value of any asset and the relative value change of its price over a period.
When these bands gradually narrow upwards and seem to merge or coincide, a 'squeeze' occurs.
If the price is close to the upper limit, it indicates a bullish breakout.
If the price converges with the lower band, it indicates a bearish breakout.
4. EMA
The exponential moving average is a weighted moving average used to measure bullish and bearish trends.
EMA is used to determine whether the price is rising or falling
EMA can also be used as support and resistance.
5. VWAP
The volume-weighted average price is a technical analysis tool that shows the ratio of asset price to its total trading volume. It provides traders and investors with a measure of the average price at which trades occurred over a given time period.
6. Volume
Trading volume is an indicator measuring market activity and liquidity over a certain period. Higher trading volumes are considered more favorable because higher volumes mean better liquidity and order execution.
Finally, I would like to share with you 20 investment tips I have summarized for buying and selling Bitcoin. In any investment market, the basic investment strategies are consistent. However, for complex and variable markets, mastering general investment strategies is necessary, but on this basis, investors must also learn and master certain practical skills, as some investment techniques tested by a large number of practices not only carry philosophical meaning but also have strong guiding significance in practice. I hope these 20 tips will help you on your investment journey.
1. Invest with 'idle money'
Remember, the money used for investment must be 'idle money,' meaning funds that do not have urgent or specific uses in the short term. Because if investors invest with essential household expenses, in case of losses, it will directly impact family livelihood. Or, if one uses funds not meant for investment to seek wealth, psychologically, one will already be at a disadvantage, making it hard to maintain an objective and calm attitude during decision-making, increasing the chance of failure in the investment market.
2. Knowing oneself is paramount
Know yourself and know your adversary, and you will never lose in a hundred battles. However, in the cryptocurrency market, knowing oneself is paramount. Investors need to understand their own character, as those who are easily impulsive or emotionally inclined are not suitable for this investment. Successful investors mostly can control their emotions and have strict discipline, effectively restraining themselves. Therefore, knowing oneself is key to ultimately succeeding in the cryptocurrency market.
3. Face the market, discard illusions.
The market is real; do not act on emotions, overly yearn for the future, or reminisce about the past. A seasoned trader said: a person full of fantasies, rich in emotions, and very expressive is a wonderful and happy person, but he is not suitable to be an investor. A successful investor can separate his emotions, fantasies, and trading.
4. Small investors should not blindly invest
Successful investors do not blindly follow the opinions of others. When everyone is in the same investment position, especially when small investors are also following suit, successful investors feel danger and change course. Blind following is a fatal psychological weakness of small investors. Once an economic data is released, or a piece of news suddenly appears, and the price chart 'breaks through' within five minutes, they rush into the market. They are not afraid of losing money together; they are afraid everyone makes money. In a certain sense, sometimes misreading market trends or having positions suddenly reverse after entering is a normal phenomenon, and even experts cannot escape it. However, the most foolish behaviors in decision-making and subsequent handling often stem from the psychology of small investors.
5. Do not overtrade
To become a successful investor, one principle is to always keep 2-3 times more funds to cope with price fluctuations. If your funds are insufficient, you should reduce the contracts you hold; otherwise, you may be forced to liquidate to free up funds, even if later it proves you were correct in your judgment.
6. Once the decision is made, do not change it lightly.
If you have fully considered and analyzed, and set the price and plan for entering the market that day, do not easily change your decision due to fluctuations in the current price. Decisions made on the fly based on changes in the day's price and market news, unless they are made by an investment master with a flash of inspiration, are generally very dangerous.
7. Act decisively
When investing in the Bitcoin market, many psychological factors can lead to failure. One common scenario is that investors face increasing losses and, even when they know they cannot afford to hope, often hesitate and fail to make decisive moves, leading to deeper entrapment and increased losses. A courageous severance is sometimes necessary.
8. Do not implement others' opinions.
This is not to advocate for autocracy. One must understand that only you will be responsible for the results of your investment. When you grasp the direction of the market and have a basic decision, do not easily change your decision due to the influence of others. Sometimes, others' opinions may seem reasonable, prompting you to change your mind, but later you may realize that your decision was the right one. Therefore, others' opinions are always just a reference; your own opinion is the decision for buying and selling.
9. When uncertain, temporarily observe
Investors do not have to enter the market every day. New entrants are often eager to buy and sell, but successful investors will wait for opportunities. When they enter the market and feel confused or uncertain, they will also leave the market first and adopt a wait-and-see attitude.
10. Appropriate buying and selling pauses
Day-to-day trading may dull your judgment. A successful investor once said: whenever I feel my mental state and judgment efficiency fall below 90%, I start to lose money, and when my state drops below 90%, I begin to incur losses. At that point, I put everything down and go on vacation. A short break from the market can help you reassess the market, re-evaluate yourself, and better see the direction of future investments. Remember, if you stay in the forest for too long, you cannot see the trees.
11. In adversity, leave the market to 'rest'
Investors are in a state of extreme tension due to personal interests at stake. If they are making profits, there is a bit of satisfaction to comfort them; but if they are in adversity, suffering continuous losses, and even making unnecessary mistakes repeatedly, they must be very careful not to become overly excited and lose control.
Be clear and calm; at this time, the best choice is to set everything aside and leave the market to rest. When the rest is over, temporary profits and losses will become the past, and the inflated mind will have calmed down, and the burden of thought will have been lifted. I believe the efficiency of investment will improve. There's a saying, 'A general who does not know how to rest is not a good general.' Without understanding how to recuperate, there is no talk of breaking the enemy or seizing the city.
12. Patience is also an investment.
There is a saying in the investment market: 'Patience is an investment.' However, very few investors can achieve this or truly understand its meaning. For those engaged in investment work, it is necessary to cultivate good patience and endurance. Patience is often a 'multiplier' for investment success, affecting whether the final outcome is positive or negative. Many investors do not lack analytical ability or investment experience; they simply lack patience, leading to premature buying or selling and unnecessary losses. Therefore, every investor entering the cryptocurrency market should recognize that patience is also a form of investment.
13. Let the past prices go.
The 'past price' is often a significant psychological barrier that is difficult to overcome. Many investors make poor investment judgments due to the influence of past prices. Generally speaking, once one has seen a high price, when the market falls back, they will feel quite uncomfortable with new low prices; even when various analyses indicate that the market will fall further, and the investment climate is very bad, investors will not only refrain from selling their holdings at these new low price levels but will also feel 'low' and have an impulse to buy. As a result, they buy and become trapped. Therefore, investors should remember, 'the past price' should be left in the past.
14. Stop-loss position, cut losses
Set a stop-loss position (this means at this point, you have reached the maximum loss you can bear). Once the market reverses and the currency price falls to the stop-loss point, be brave and cut your losses. This is a very important investment skill. Due to the high risk of Bitcoin, to avoid losses from mistakes in investment, we should set a stop-loss order every time we enter the market. If the exchange rate falls to a certain predetermined price and may continue to fall, we should immediately execute the trade. This way, the loss incurred is limited and manageable, preventing further losses and total loss of capital. Because even if you cut losses temporarily, your investment capital remains, and as long as the green mountain stays, you need not fear for firewood.
15. Do not go all in.
In contract trading, one must act according to one's capacity and must not put all life savings or all family assets in one big bet. Because in such a situation, once the market prediction is incorrect, there is a possibility of significant losses or even getting stuck. At this time, the more prudent approach is to implement the 'pyramid averaging' method. Start with a portion of the investment, and if the market situation becomes clear and favorable, then increase the investment. Moreover, when the market is adverse, one must prevent the mentality of going all-in from arising.
16. Do not let a few points cause errors
In Bitcoin trading, do not blindly chase round numbers when making profits. In practice, some people set a profit target after establishing a position, like wanting to earn $200 before leaving, and they are always waiting for that moment. After making a profit, sometimes the price is close to the target, and the opportunity to take profits is good, but they miss the best price due to the original target while waiting. Remember, it is not worth it to miss out on a good deal just to fight for a few points.
17. When the situation is not right, turn the tables
Sometimes transactions are made with the market, but if entering the market is nearing the end, care must be taken. Once a reversal occurs and the situation is not right, a counterattack should be launched. For example, after buying in a bullish market, if the price stagnates, and then suddenly drops, do not panic. It is best to reflect. If it can be determined that a reversal is occurring, immediate liquidation and counterattack are necessary.
18. Establish positions when seeking breakthroughs in market situations
The market situation refers to a narrow range of price fluctuations, where buying and selling forces are evenly matched, temporarily in a tug-of-war state. Whether in a rising market or a falling market, once the market situation ends and breaks through resistance or support levels, the price will jump forward. For experienced investors, this is a good time to enter the market and establish positions. If the market situation belongs to a long-term threshold, the positions established when breaking through the market situation will be very rewarding.
19. Be cautious of rebounds after large declines and adjustments after sharp rises.
In the Bitcoin market, prices rise or fall sharply; they do not rise or fall in a straight line. Rapid increases will always correct, and sharp declines will also rebound. The magnitude of these adjustments or rebounds is complex and not easy to grasp. Therefore, after the exchange rate rises two or three hundred points or five or six hundred points, one must be particularly cautious. It is better to wait and observe rather than rashly follow.
20. Learn to control risks
The Bitcoin market is a high-risk market, and its risks mainly arise from the multitude of variables determining Bitcoin prices. Although there are various theories and doctrines regarding Bitcoin's volatility, the fluctuations in the cryptocurrency market still often catch investors off guard. For Bitcoin market investors and operators, it is particularly important to learn about risk probabilities. This means that in Bitcoin investment, it is necessary to fully understand the risks and benefits, the probabilities of winning and losing money, and several major issues regarding prevention. If there is no accurate understanding of risk control and one engages in Bitcoin trading randomly, losses are inevitable.
This is the trading experience shared with you today.$BTC