My family members are so dramatic! Back in 2015, my dad was persuaded by someone with just a few words and impulsively bought 4000 bitcoins! After he stored the key on an Apple laptop, he completely forgot about it, even forgetting the password entirely. When the last bull market hit, the price of bitcoin skyrocketed like a rocket, and my dad was as anxious as an ant on a hot pan, thinking about selling the coins to make a big profit, but he couldn’t find the key no matter how hard he searched, just watching helplessly. Hey, guess what? This year, things took a big turn; my dad found a super skilled expert, and after some operations, the key was actually successfully cracked and retrieved!
Hey everyone, today I have to tell you about my journey to success in cryptocurrency trading! I started as a small retail investor with only 5,000 yuan in my pocket. I worked my way up through the ranks and now have a 25 million yuan fortune. Let me share the ups and downs along the way.
Let's start with money management. This is crucial for cryptocurrency trading. Never invest all your money at once. I usually divide my funds into five parts, and use one part at a time. Even if I lose money this time, it won't push me to the brink of ruin; there's always a chance to rebound. I also have a strict rule for myself: if I lose 10%, I withdraw immediately, no matter how tempted by the market. If I lose 10% five times in a row, my total loss will only be 50%, but if I make a profit, the gains will be far greater. Even if I accidentally get trapped, I can remain calm and composed.
When it comes to cryptocurrency trading, following market trends is the most reliable strategy. When the market is falling, don't dwell on bottom fishing; that's sheer wishful thinking; the bottom is unpredictable. Waiting for a market rally, a pullback presents a golden opportunity. Buying at a low point is much safer than pinning your bets on the bottom, and the chances of profit are much higher.
When it comes to coin selection, you need to be discerning. Avoid coins that have skyrocketed in value, whether they're mainstream or altcoins. Coins that have surged too quickly are likely to experience a sharp correction, making it easy to get stuck and find a way out.
When it comes to technical indicators, the MACD is my most frequently used indicator. When the DIF and DEA lines cross below the 0 axis and then break through it, it's a good buy signal. Entering the market at this time often promises a wave of profits. Conversely, if they cross above the 0 axis and then move downward, reduce your position immediately; don't hesitate, or you might lose all your profits.
Don't be impulsive when it comes to adding to your position! If you're losing money, forget about adding to it. The more you add, the more you lose, and you might end up losing everything. Remember, stop losses decisively when you're losing, and only consider adding to your position when you're profitable. This is the only way to preserve your gains.
Trading volume is also a key indicator that cannot be ignored. When the price of a currency breaks through a low level, if the trading volume suddenly increases, it is usually a big opportunity. Like a train starting to move, it may be followed by a big market trend. If you follow this opportunity, you may be able to make a lot of money.
The most important thing is to follow the trend and seize it! You can combine the daily line, 30-day line, 84-day line, and 120-day line to see which line starts to turn upward. You will know what to do. Follow the trend and making money will be like sailing with the current.
Cryptocurrency trading presents both risks and opportunities. But as long as you learn how to manage your funds, analyze trends, and select cryptocurrencies, it's possible to rise from a small retail investor to the middle class, just like me! Let's work together, everyone!
Technical knowledge of cryptocurrency trading:
Share my experience
When looking at technical patterns, first look at the monthly and weekly charts. If the stock is clearly trending down, don't rush into buying. If the weekly and monthly charts are fluctuating sideways, wait and see. If the bottom continues to rise, that's even better, as the time to buy is near. If the stock is trending up, look for a pullback on the daily chart to buy.
Second, look at the daily chart pattern. Don't buy if the trend is down. When the bottom continues to rise, buy at the low point of the oscillation. This is a left-side buy, which may require patience and can be quite tiring. If the daily chart breaks out of an upward trend, buy when it breaks through and retraces to the EMA 10 or 20. This is a right-side buy.
The third is to look at the short-term cycles of 4 hours and 1 hour. A pullback to EMA10 or 20 is a buying point.
Weekly, daily, 4-hour, 1-hour, from large cycle to medium cycle to small cycle. The main chart selects EMA5-10-20-60.
If you plan to trade in cryptocurrencies for a long time but don’t understand the technology and haven’t found effective tips for trading cryptocurrencies, then you might as well try this super simple “fool-proof” strategy. Even if you are a novice, you can easily get started with an 80% success rate. Whether you are buying or selling cryptocurrencies, just follow it.
First, you have to pick coins that are rising or at least stable. Those that are falling or have a clear downward trend should be directly passed over.
Then, divide your money into thirds. When the price breaks through the 5-day moving average, cautiously buy one-third. Wait until it breaks through the 15-day moving average, then buy another third. If it also breaks through the 30-day moving average, buy the remaining third. This step must be strictly followed, don't be lazy.
Next, if the price of the currency does not have the strength to continue to rush to the 15-day moving average after crossing the 5-day moving average, and instead falls, as long as it does not fall below the 5-day moving average, you should hold steady and do not move. Once it breaks, sell it quickly.
Similarly, if the price breaks through the 15-day moving average and then loses momentum, hold on as long as it doesn't break below it. If it does, sell one-third of your holdings. If the 5-day moving average remains stable, hold on to it. If the price breaks through the 30-day moving average and then falls back, sell as usual.
Conversely, the same approach applies when selling. If the price of a cryptocurrency is high and falls below its 5-day moving average, sell one-third of it. If it stops falling, hold on to the remaining 60%. However, if the 5-day, 15-day, and 30-day moving averages all fall, sell everything without hesitation.
Although this fool-proof strategy is simple, the key is to abide by the rules. After buying, the buying and selling rules must be set. Only by strictly following the rules can you make money!
I call the Dunning-Kruger effect the law of cognitive fluctuation. In fact, cryptocurrency trading also goes through this process:
Confidence--Improvement--Reset--Rebuild Confidence--Improve Cognition--High Cognition and Stable Output
When you reach the latter two stages of cognition, you can try to go all in. Because human energy and lifespan are limited, the economic cycles that can be experienced in a limited life are even more limited. Blindly being conservative, dormant, and waiting may seem stable, but it is very likely that you will miss the phenomenal opportunity to cross classes. Therefore, those who have not yet reached zero should quickly reach zero (not necessarily wealth, but ideological zeroing and reconstruction are important).
After you come back, if you seize one or two opportunities, you can cross the class. Once you have experienced crossing the class once, you can replicate it later. There are not many ways to succeed. If you miss it, you miss it. Daring to go all in is the confidence in your own cognition. Come on, see you at the top.
Introduction to digital currency contracts, rules for beginners to trade cryptocurrencies:
First of all, we need to know that before investing in digital currency contracts, novices will first consult a lot of information to understand the digital currency contract model, and even open an account to test the waters. After operating several times, they feel that they are still not suitable for this market because they lack many details and skills.
Secondly, digital currency contract operation skills also require stop-loss and take-profit control. Setting stop-loss and take-profit is not only for beginners, but also very necessary for experienced digital currency investors. Because digital currency is an investment and financial management, since investment has gains and losses, and the acceptable loss varies depending on individual circumstances, the stop-loss setting should be based on the investor's individual situation.
The cryptocurrency market, with its lucrative and exciting nature, is popular among investment enthusiasts. But for beginners, how much does it cost to trade digital currency contracts?
(1) In fact, many investors start with a certain amount of capital. This is not because they have little capital, but for safety reasons. Then they increase their capital investment little by little depending on the situation until they reach the appropriate capital ratio.
(2) A widely accepted view in the financial industry is that contract investment assets should not exceed 20% of total investment assets. In other words, if a person is prepared to invest 1 million yuan, then the amount of money used in contract operations should not exceed 200,000 yuan.
Can you make money with contracts? Three important lessons for contract trading!
Experience #1: Manage your positions properly. Only by properly managing your positions can you achieve consistent profits; otherwise, your account will only fail. Generally, invest 20% of your funds in the market. If your account only has $50,000 USD and your margin is $1,500 USD per share, then it's best to place orders in the standard size of 6-7 lots each time, regardless of whether you're long or short.
When the market conditions are good and the entry orders are profitable, you can increase your position little by little, and the position should not exceed 40%. On the contrary, if the entry orders are losing money, do not increase your position against the market unless you have plenty of funds to support it.
Tip #2: Set a stop-loss before entering a trade. Generally, 50-100 pips is a good start, or below a support point and above a resistance point. Not setting a stop-loss means every trade you make could lead to a dead end for your account.
Experience three: Understand the nature of the market and avoid guessing the top.
Many investors are accustomed to looking at daily and weekly charts and making short-term trades, treating BTC's long-term fluctuations as short-term operations and BTC's short-term fluctuations as long-term operations, completely ignoring the difference between short-term and long-term trading. This is incorrect. If they continue to operate in this way for a long time, their losses will become greater and greater in the future.
Through the above analysis, we understand what skills novices need to master when operating digital currency contracts. The above skills are only part of the skills. When choosing a platform, it is also important to choose a formal platform.
Trading experience in the cryptocurrency market:
Learn these tips and you can easily earn 100 times your money in the cryptocurrency market without any losses!
Sharing some cryptocurrency trading tips: Don't miss out on short-term opportunities when prices break through key support or resistance levels. Explanation: Once prices break through a key support or resistance level, there may be a short-term trading opportunity. Don't hesitate to seize it. After a sharp rise, there will be a pullback; don't rush to buy high.
Explanation: After a sharp rise in prices, there will often be a correction process. At this time, don’t rush to buy coins at high prices, you have to wait and see.
If the price of the currency goes up but the trading volume does not increase, the main force may be deceiving people. Explanation: If the price goes up but the trading volume does not move much, it may be that the main force is playing tricks and wants to lure retail investors into being deceived. You have to keep your eyes open.
Don't panic when the price drops sharply but the trading volume is small; if the price drops slowly and the trading volume is getting bigger and bigger, you have to retreat quickly. Explanation: When the price drops sharply but the trading volume is small, don't panic; if the price drops slowly and the trading volume is getting bigger and bigger, you have to retreat quickly.
When the main rise is in progress, the speed is accelerating, and it may be about to reach the top. Explanation: When the price rises rapidly, it is very likely to reach the top. You must pay attention to the top signal in advance and be prepared.
Don't chase high prices when buying in the market, wait for a pullback before selling Explanation: When buying a cryptocurrency, don't wait until the price has risen very high before buying, as that would be too risky. It is best to wait for it to pull back a bit and the price will be relatively stable before buying.
You have to look at both the daily and weekly charts, the main force's movement is the key. Explanation: When looking at price trends, don't just look at the daily chart, you have to combine it with the weekly chart or even the trend chart for a longer time, so that you can better grasp the main force's movement and market trend.
Don't panic when prices rise or fall slightly, but be vigilant when prices rise sharply. Explanation: Don't panic when prices rise or fall slightly; but if prices rise sharply continuously, you have to be vigilant and don't be carried away by the market enthusiasm.
The price has reached a new low and the volume is shrinking, which may be a bottom: when the trading volume picks up and the price starts to rise, it is a good time to enter the market. Explanation: When the price falls to a new low and the trading volume is shrinking, it may be a bottom; when the trading volume starts to pick up and the price starts to rise, it is a good time to enter the market.
There are many ways to make money in the cryptocurrency world. Here are nine common ways:
Cryptocurrency speculation: Earning the difference by buying and selling cryptocurrencies.
Hoarding valuable coins: holding potential coins for a long time and waiting for their value to rise.
Exchange arbitrage (IEO): arbitrage by taking advantage of exchange promotions or new coin issuance opportunities.
Airdrop: Participate in the project's airdrop activities to get free tokens and wait for them to appreciate in value.
DeFi Mining: Get mining rewards by participating in decentralized financial projects.
Physical mining machine mining: Purchase a physical mining machine to mine and get rewards.
GameFi Gold Farming: Earn in-game currency or tokens by participating in game financial programs.
Participate in the primary market: Directly participate in the private or crowdfunding stage of the project to obtain low-priced tokens. Donate to early-stage projects: Support early-stage projects through donations to obtain project tokens or equity.
All roads lead to Rome. There are many ways to make money in the cryptocurrency world. The key is to find the one that suits you and stick with it. I hope these tips and methods can help you adapt to the cryptocurrency world faster and find your own way to make money.
Investment and financial management are becoming an increasingly popular choice, with the cryptocurrency market attracting significant attention as a new and emerging investment method. While the cryptocurrency market is full of opportunities, it also carries significant risks.
For beginners, blindly buying and selling and relying on rumors often lead to losses. Cryptocurrency trading requires technical support, and candlestick charts are important technical indicators, and their patterns contain rich information.
1. K-line basics
1. The origin and significance of the candlestick chart
K-line charts, also known as candlestick charts, originated during the Tokugawa shogunate era in Japan. Initially, they were used by rice merchants to record market trends and price fluctuations. Due to their unique plotting method, K-line charts later became widely used in the capital market, becoming a crucial tool for investors to analyze market trends.
2. K-line structure and drawing
K-lines are drawn from the opening, high, low, and closing prices of each analysis period. Structurally, a K-line can be divided into three parts: the upper shadow, the lower shadow, and the middle body, each of which contains rich market information.
3. How to learn to read the K-line chart of currency circle trading?
K-line colors in the cryptocurrency market
In the cryptocurrency market, green typically represents a bullish candlestick, indicating a higher closing price than the opening price; red represents a bearish candlestick, indicating a lower closing price than the opening price. Using different colored candlesticks, we can intuitively understand market fluctuations.
What’s the use of looking at the candlestick chart for me?
As a crucial tool for cryptocurrency trading, candlestick charts can help you develop more precise investment strategies. They not only reveal market trends but also guide you to optimal buying and selling opportunities. Understanding candlestick charts is crucial for those who firmly believe in hoarding cryptocurrencies. K-line charts occupy a central position in the trading interfaces of major exchanges. Without a good understanding of candlestick charts, navigating the cryptocurrency world can be challenging.
Therefore, mastering candlestick chart analysis techniques is an essential skill for anyone who wants to thrive in the cryptocurrency world. Whether you’re short-term trading or long-term cryptocurrency hoarding, candlestick charts are an indispensable aid.
What key information can you get from looking at the K-line chart?
A candlestick chart lets you clearly understand price trends over a specific period of time, including opening, closing, high, and low prices. It also provides a direct record of the battle between bulls and bears, showcasing the fierce market dynamics.
Grasp the K-line chart, understand the pulse of the market, and help you make more informed investment decisions!
4. K-line basics
a. Composition of K-line chart
The K-line chart is mainly composed of positive and negative lines.
Each K-line reflects 4 key prices: highest, lowest, opening and closing prices.
️ A "rectangular entity" is formed between the opening and closing prices, connecting the highest and lowest prices to form a complete K-line.
b. Yang and Yin lines
The core of the K-line chart: the positive line and the negative line.
Green is a bullish candlestick, representing strong bullish (buying) power.
The red line represents a negative line, which means that the short side (selling) has strong power.
Take the daily line as an example: if there are more positive lines, the buying power is stronger; if there are more negative lines, the selling power is stronger.
c. Secrets of the Moving Average Chart
The colorful lines in the K-line chart are the moving averages.
White, yellow, purple...each color line represents the moving average of different periods.
5-day, 10-day, 90-day...moving averages can be freely set to flexibly capture the market pulse.
5. Cryptocurrency K-line chart patterns
According to the different forms of K-line charts, we can divide them into several categories:
Reversal patterns, consolidation patterns, trend patterns, special patterns
These patterns are not used in isolation; they are often combined with other technical indicators, such as volume and moving averages, to provide a more comprehensive and accurate market analysis. It's important to note that while candlestick patterns can provide useful information, they are not an absolute tool for predicting market trends, and investors should consider a variety of other factors when making decisions.
What information does a candlestick chart contain?
Opening price: The price at the opening of the current time unit. (For example, the opening price is the starting price of each hour.)
Closing price: The price at the end of the current time unit. (For example, the closing price of each hour is the closing price)
Yang line: When the closing price is greater than the opening price, the bar is green and the price rises, which we call a Yang line.
Yin line: When the closing price is lower than the opening price, the bar is red and the price falls, which we call a Yin line.
Note: Since cryptocurrency trading operates 24/7, when the time unit is days, the opening price of each day is the previous day's closing price. Different exchanges also use different anchor times. Huobi typically uses 12:00 AM as the opening/closing time, while some exchanges like OKEx use 8:00 AM as the opening/closing time.
Highest price: The highest price in the candlestick chart.
Lowest Price: The lowest price in the candlestick chart.
Each candlestick chart represents four daily prices: the highest price, the lowest price, the opening price, and the closing price. The area between the opening and closing prices is drawn as a "rectangular solid," and the highest and lowest prices are connected by a line. The combination of the two forms the candlestick chart.
When it comes to cryptocurrency trading, models, discipline, and mentality are all indispensable. You need to understand them slowly. The longer the time, the deeper your understanding will be.
It may seem like a useless truth at first; but once you realize it, you will find that these six words are the key to winning in cryptocurrency trading!
Remember these eight iron laws! Every word is written in blood!
1. Blindly entering the market is doomed to fail! If you rush in without understanding the market, you are simply throwing money away.
2. If you go all-in with a heavy investment, you will fail! If you put all your eggs in one basket, if it falls, they will all be gone.
3. If you don’t set a stop-loss, you will die! If you don’t admit your losses, you will only lose more.
4. Greed will lead to death! If you keep wanting more after making money, you will end up losing it all.
5. Frequent operations will lead to your death! If you make a fuss, you will lose all the fees.
6. Chasing the rise and selling the fall will lead to death! You follow others' panic and rush in when others are greedy. This is the behavior of leeks.
7. If you don’t follow the rules, you will die! The strategy you agreed on will be thrown into disarray when the market goes up or down.
8. Dreaming of getting rich overnight is doomed to fail! The cryptocurrency world is not a casino. Getting rich overnight is a dream. Stop dreaming!
Personal summary of cryptocurrency investment skills
1. When eating fish, eat the middle part and leave the head and tail for others.
2. If you don’t set a stop-loss when trading cryptocurrencies, you will definitely lose a lot of money.
3. Newbies look at prices, veterans look at volumes, and experts look at trends.
4. Buy mature coins, don’t suffer, buy at the bottom, and be as still as a mountain.
5. Buying requires confidence, holding requires patience, and selling requires determination.
6. Opportunities come from falls, cash is king.
7. When it comes to cryptocurrency trading, mentality comes first, strategy comes second, and technology can only come third.
8. Market trends usually arise in despair, develop in hesitation, and end in madness.
9. Greed is the rag of profit. Greed and fear are taboos in investment.
10. If long-term investment is gold and short-term investment is silver, then swing trading is diamond.
11. We should be greedy when others are fearful, and we should be fearful when others are greedy.
12. Luck and hesitation: Luck is the culprit that increases risks, and hesitation will lead to missed opportunities.
13. Don’t fill your position easily at any time. Doing so helps you maintain a normal mentality and allows you to attack or defend in operation.
14. If you operate frequently, you must lose all the money. If you hesitate, you will bleed slowly.
15. There are no absolutely accurate indicators, only retail investors with only half-knowledge. Indicators are useful to those who know how to use them, but harmful to those who do not.
Giving a rose leaves a lingering fragrance on your hand. Thank you for your likes, attention, and reposts! I wish everyone financial freedom in 2025! Playing in the cryptocurrency world is simply a battle between retail investors and market makers. Without cutting-edge information and firsthand data, you'll be ripped off! Those who want to join in the investment and harvest the market makers can follow Axin and discuss with like-minded cryptocurrency enthusiasts. The martial arts secrets are already available to you, but whether you can achieve fame in the world depends on yourself.
