I believe that many people have just entered the cryptocurrency circle and don’t know what blockchain, Bitcoin, and web3 are?
Let's talk about the relationship between them today.
Blockchain
It is a distributed ledger technology that is decentralized, immutable, and transparent. It uses a consensus mechanism to ensure that all nodes in the network reach an agreement on the addition of data.
✔️What it does: Blockchain is an underlying technology that provides a secure, transparent, and decentralized infrastructure for recording transactions or other data.
✔️Application scenarios: Not only cryptocurrency, but also supply chain management, data storage, identity authentication, smart contracts, etc.
✔️Relationship with Bitcoin: Bitcoin is the first application of blockchain technology, and blockchain is the core technology that supports the operation of Bitcoin.
Bitcoin
It is a digital currency designed to enable peer-to-peer value transfer, decentralized and independent of any central authority (such as a bank).
✔️ Features
Decentralization
Limited total amount
Blockchain-driven: Bitcoin's transaction records are maintained through blockchain technology.
✔️Relationship with blockchain: Bitcoin is the first successful application of blockchain technology. Blockchain provides a distributed ledger for Bitcoin that records all Bitcoin transactions.
✔️Relationship with Web3: Bitcoin can be seen as part of the Web3 ecosystem, but its functions are more focused on value storage and payment
Web3
It is a new form of decentralized internet based on blockchain technology. It aims to build a new internet where users can directly control their data, identity and assets through blockchain, cryptocurrency and decentralized protocols.
✔️ Features
Decentralization
User Ownership: Users control their own data and digital assets, such as managing assets directly through crypto wallets.
Smart contracts: Through smart contracts on the blockchain, automated operations without the need for intermediaries can be achieved.
Economic incentives: Through the token economic model, users are encouraged to participate and contribute.
✔️Relationship with blockchain: Blockchain is the technical foundation of Web3. Applications in Web3 (such as decentralized finance and NFTs) all rely on blockchain's distributed ledger and smart contracts.
✔️Relationship with Bitcoin: Bitcoin is part of the Web3 ecosystem, but Web3 has a broader scope, while Bitcoin mainly focuses on the functions of digital currency.
The relationship between the three
Blockchain is an encryption technology, Bitcoin is a derivative asset of blockchain, and web3 is the business model of blockchain.
✅For example:
Blockchain is "electricity" and provides basic energy;
Bitcoin is the “light bulb,” the first successful application of electricity;
Web3 is the “smart grid,” a more complex and extensive system based on electricity.
From 5,000 to 5 million: I relied on these three tricks to turn around from 2 million in debt. Less than 1% of people can do the last one.
When I first entered the cryptocurrency world, I only had 2,000 yuan in my pocket for living expenses; the seven-digit balance in my account now was not a gift of luck, but the result of my hard work and the "violent rolling method" that supported it.
Phase 1: 300U's Wild Growth (Core: Rooting Out Greed)
The most fatal mistake new investors make is trying to leverage 1 million yuan with 10,000 yuan – which often ends up being wiped out by the market within three days. My initial strategy, on the other hand, was to be extremely restrained:
100U sniping tactics: only focus on the top ten hot coins in 24-hour trading volume (such as PEPE, WIF and other consensus targets), but the iron rule must be engraved in the DNA:
Withdraw the principal immediately if the profit exceeds 80% (if 100U increases to 180U, withdraw 80U on the spot and use the profit to gamble)
When the loss reaches 30%, I will cut my losses decisively (when there are only 70U left from 100U, I will cut it without hesitation)
The "Three Wins" rule: Stop trading after three consecutive wins (100 → 180 → 324 → 583 U). At this point, your account should have about 500-600 U, which you must immediately transfer to a cold wallet and store for 24 hours. This is my "sage time" to combat my "highs" and avoid placing trades based on emotion.
Phase 2: Three-dimensional harvest after 1000U (80% of people get stuck here, lacking a system)
After the capital breaks 1000U, splitting the position is the life and death line. My configuration logic is as follows:
Blitz (20% of funds)
Only take action at 16:00/20:00 Beijing time (the window period when European and American institutions enter the market in large numbers), and focus on catching the "pin-pump market" of BTC/ETH: place long orders at key support levels (for example, BTC falls to an important moving average), and close the position when it rebounds by 2%. Only make one order per day, and never be greedy.Ambush position (30% of funds)
Keep an eye on Coinbase's listing announcements and make arrangements in advance, use 5x leverage to participate in the IEO of new coins, and sell within 30 minutes of the opening regardless of whether the price goes up or down - making quick money by taking advantage of the information gap.Nuclear weapons (50% funding)
I only trade 2-3 times a year, but I strive for returns of 300%+ each time. This requires me to have the Fed's rate hike calendar and the movements of on-chain whales firmly ingrained in my mind. For example, before the Fed meeting on June 12th of last year, I monitored the movements of BTC withdrawal addresses on Coinbase and made a three-day advance investment, which doubled my returns in a single round.
I've seen too many people fall back from seven figures to square one, and their failures stem from failing to do these three things:
The ritual of stop-loss: After each stop-loss, write down three operational mistakes (such as "chasing high" and "not checking the volume") and stick them directly opposite the screen - using pain to strengthen memory.
Cash freezing technique: Every time the profit reaches 50%, immediately convert 25% into USDT and transfer it to a cold wallet, and hide the key in a safe - this part of the money cannot be moved even if the market crashes.
Time lock: Use a spare Android phone to force lock the phone from 14:00 to 16:00 every day (set a system timer lock) to prevent irrational operations before the market opens.
If your current account has less than 10,000 U, the "restrained play" in the first stage is the only antidote; if you are stuck at the bottleneck of 10,000-100,000 U, what you lack is not luck, but the sub-account system and absolute control over human nature.
In a 24/7 trading market with volatility often exceeding 10%, "stable profits" are the ultimate goal of countless traders. However, the reality is that at least 80% of speculators don't even have a dedicated trading system. Many are misled by "K-line technology" and "indicator analysis," believing that understanding MACD and RSI will guarantee easy profits. Ultimately, they lose all their capital through chasing rising and falling prices and using leveraged contracts.
In reality, a positive-return trading system tailored to the market and ironclad execution are the two cornerstones of guaranteed long-term profitability. Today, we'll break down a simple trading system designed specifically for the market. It's especially suitable for traders with at least one year of experience in market analysis and short-term (intraday/swing) trading. With rigorous implementation, you can master it in 3-5 days.
1. Core Prerequisites of the System: Select the Right Target and Cycle to Avoid “Ineffective Consolidation” in the Trading Market
The trading market operates 24 hours a day and experiences significant fluctuations. Choosing the right target and cycle can directly reduce invalid transactions by 50%, which is the first step to a profitable system.
1. Target selection: Only trade familiar and liquid assets
There are over 10,000 varieties of trading products in the market, but 90% of them are "niche" and "high-risk" varieties. They have irregular fluctuations, poor liquidity, and are easily manipulated. It is recommended to prioritize mainstream varieties + high-liquidity varieties:
Mainstream currencies: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), etc., with relatively controllable volatility and sufficient market depth, and no "spike" (liquidation) will occur;
Other assets: Only select the top 50 assets by market capitalization and assets with recent hot topics (such as inscriptions and Layer 2 concepts) (e.g., SOL, ARB). Observe for at least a week in advance to familiarize yourself with their volatility habits (e.g., ETH tends to rally in the early morning hours, and SOL's volatility is three times greater than BTC's).
2. Cycle selection: The 15-minute cycle is the "short-term golden cycle" in the trading market.
The choice of trading market cycle is very important: 1 minute / 5 minute cycles are "too noisy" (frequent false breakouts), 1 hour / 4 hour cycles are "too slow to react" (missing short-term opportunities), and the 15 minute cycle is just right for:
It can filter out the interference of "second-level pins" and capture 3-5 small trends within a day (for example, BTC's 15-minute cycle can produce 2-3 valid boxes a day);
There is no need to watch the market 24 hours a day. You can set aside 3-4 times a day (such as 9 am, 1 pm, and 8 pm) to check the market to avoid operational deformation caused by fatigue from watching the market.
3. Key Screening: How to identify the “effective consolidation range” of the trading market?
The most deceptive thing about the trading market is "false consolidation"—for example, a short consolidation where BTC drops 200 points and then rebounds 50 points. This may appear to be a reversal, but in reality it is a "downward continuation." If you enter the market rashly, you will be trapped. A true "effective consolidation" must meet two conditions:
Morphologically: It must be a range formed by a complete uptrend (e.g., a 300-point rise in BTC) followed by a complete downtrend (a 200-point drop). The candlestick chart should clearly indicate exhaustion of the previous trend, rather than a minor pause in the trend (e.g., a consolidation of only three 15-minute candlesticks during a unilateral decline—this should absolutely be avoided).
In terms of volume: in the later stages of consolidation, "trading volume has shrunk significantly" (for example, BTC's trading volume per K-line was 500 million before consolidation, and dropped to less than 200 million after consolidation), and "the number of pending buy and sell orders has decreased" (for example, buy one and buy two orders have dropped from 1,000 BTC to 200 BTC), eventually forming a "box-shaped pattern with fixed highs and lows" (for example, BTC oscillated between 42,000 and 42,500, with the upper and lower edges within 500 points).
2. Only open positions at two points: a breakout of the trading range + confirmation of a pullback, and avoid “chasing the ups and downs”
The key to short-term profit in the trading market is to "not be greedy and focus on certainty." This system only uses two verified entry points to fundamentally avoid "chasing highs and waiting" or "picking the bottom halfway up the mountain":
1. First entry point: Box breakout point (trading market trend start signal)
Trigger Condition: After the "valid box" is formed, the price breaks through the upper edge (long) or lower edge (short) of the box for the first time, and two details are met:
When a breakthrough occurs, the trading volume increases (for example, when BTC broke through 42,500, the trading volume of a single 15-minute candlestick increased from 200 million to 800 million), indicating a true breakthrough rather than a "pin-buying scam";
The box must be "fully consolidated": in a 15-minute cycle, there must be at least 6-8 K-lines oscillating within the range (for example, BTC oscillated between 42000-42500 for more than 1.5 hours). Those "small boxes" with only 3-4 lines are essentially "unfinished trends" and rash entry will lead to losses.
Operational logic: After a breakthrough, "wait for 1 K-line confirmation" - for example, after BTC breaks through 42,500, wait for the closing of this 15-minute K-line to confirm that the closing price is above 42,500 before opening a long order (to avoid being deceived by "second-level pins"); contract players can use 2-3x leverage at this time, and spot players can enter the market directly.
2. Second entry point: confirmation point of the pullback box (trading market trend continuation signal)
Trigger conditions: After breaking through the box, the price first pulls back to the upper edge of the box (when going long, the pullback should not be lower than the "most high points" within the box range, for example, most K-line high points of the BTC box are at 42300, so the pullback stops at 42300) or the lower edge of the box (when going short, the pullback should not be higher than the most low points of the box), and "does not fall below the key level":
For example, when going long, after BTC pulls back to 42,300, the 15-minute K-line shows a "long lower shadow" and "yang enveloping yin", indicating that the support is effective, which is the entry point; if the pullback directly falls below 42,200 (below most high points of the box), it means it is a "false breakthrough" and you should give up immediately.
Operational logic: This point is a "buy-up opportunity for hesitant traders in the trading market," especially suitable for novices who are afraid to chase breakthroughs. For example, if BTC breaks through 42,500 and rises to 42,700, entering the market when it pulls back to 42,300 will have a "thicker safety cushion" than entering at the breakthrough point, and the stop loss will also be smaller.
3. The Iron Rule of Risk Control in the Trading Market: 30-100 pips stop-loss + no-holding take-profit orders to protect your principal and avoid margin calls
Trading markets are 3-5 times more volatile than the stock market. Risk control is more important than profitability. This system's stop-loss and take-profit rules are designed specifically for the trading market. New traders can avoid margin calls by following them.
1. Stop loss: 30-100 pips. Contract traders should never exceed 100 pips.
Stop loss level = opening point ± (30-100 points), the specific number of points is adjusted according to the volatility of the product:
BTC/ETH: The volatility is relatively small, so set a stop-loss of 50-80 pips (e.g., if you open a BTC position at 42500, set a stop-loss at 42420; if you open an ETH position at 2200, set a stop-loss at 2120).
For products like SOL/ARB: Due to high volatility, set a stop-loss of 30-60 pips (e.g., if you open a SOL position at 100, set a stop-loss at 99.4; if you open an ARB position at 1.2, set a stop-loss at 1.14);
Important point for contract traders: Stop-loss should never exceed 100 pips, and the lower the leverage, the better (2-3x is best). Don’t believe in “quick money with high leverage” – a single 10x leverage liquidation in the trading market can wipe out all the profits from the previous 10 trades.
Core principle: Set a stop-loss the moment you open a position, and close it immediately when triggered, even if there's a subsequent rebound. The trading market is incredibly volatile, and a minute of hesitation can turn a small loss into a blowout.
2. Stop Profit: Don’t turn a “profit order” into a “loss order”, quit when you see the profit
There is no "fixed profit stop point" in the trading market. The core is "dynamic profit guarantee":
If you make a profit of 50 pips after opening a position, immediately move your stop loss up to "opening point + 10 pips" (e.g., if you open a long position at BTC42500 and the profit reaches 42550, move your stop loss to 42510). This way, you can maintain your 10 pip profit even if there is a pullback.
If the profit exceeds 100 pips, you can halve your position (for example, if you hold 10 BTC, reduce it to 5 after a 100 pip profit). You can let the profits run, but the stop loss must be moved up accordingly (for example, if the profit is 150 pips, adjust the stop loss to 42580).
Key reminder: You absolutely cannot “hold on to your position and wait for it to double” - the trading market can reverse quickly. For example, BTC may rise from 42,500 to 42,700, but it may fall back to 42,400 in 15 minutes, turning profits into losses in an instant. It is better to “quit while you are ahead” and accumulate small victories into big ones.
4. Trading market execution is more important: these 3 points are 10 times more useful than understanding technology
The trading market is full of temptations (such as "contract group calls" and "good news"). Many people understand the system but cannot make money because they fail to execute it properly. Remember these three points:
1. Only trade familiar stocks and don’t be tempted by “new stocks/good news”
No matter what the chatter in the group calls, "New stocks surge 50%" or "X stocks have good news," if you haven't observed and are unfamiliar with their fluctuations, stay away from them. In the trading market, "selling on good news" and "new stocks breaking their issue prices" are the norm. Consolidation and breakouts in unfamiliar stocks are 90% likely traps set by market makers.
2. Avoid "watching the market in the wee hours"; a 15-minute cycle is sufficient
The trading market operates 24 hours a day, but 2-5 a.m. is often a period of "low trading volume and high pin-ups". There is no need to watch the market - the 15-minute cycle signal is completely in time when you wake up at 7 a.m. to check it. Staying up late to watch the market will only make you "dizzy and distorted in your operations."
3. Accept "small losses" and don't deny the system because of one loss
The core of this system is "probability of winning"—you might lose three out of ten trades, but if each loss is 50 pips, the seven winning trades will each yield 80 pips, guaranteeing long-term profitability. Don't arbitrarily change the rules (for example, increase your stop-loss to 200 pips) just because you lost 50 pips once. Changing the rules in the trading market is the beginning of losses.
Finally: Trading operations require survival to be profitable
Many traders pursue "accurately predicting tops and bottoms" and "catching 100x-yielding stocks," but forget the fundamentals of "system + execution." This 15-minute market breakout system eliminates the need for complex indicators or market cues. Simply by mastering the art of selecting a market, waiting for the market breakout, maintaining entry points, and maintaining strict stop-loss orders, you can "survive" in the trading market—and only by surviving can you profit significantly when the market is strong.
The trading market has many opportunities, but also many traps. Instead of worrying about "chasing the rise and selling the fall", it is better to focus on making every trade in the present: wait for a valid box, catch a confirmed breakthrough, and be content with making 30-100 points. Persist in the long run, and profits will come naturally.
I have looked at this picture dozens of times. Today I will break down 7 classic graphics for you. I have summarized the following for each one:
Appearance scenarios, how to buy wheat points, how to allocate positions, etc.
① Bearish channel: low reversal signal
It is common that after a sharp drop in the market, the price fluctuates downward at the bottom.
Buying point: Break through the upper band or double bottom confirmation
Position: 30% for the first breakthrough, add another 30% when the price falls back to confirm
It is easy for newbies to miss this wave! In fact, the real start is often the breakthrough at that time.
② Rising wedge: a trap to lure investors into buying at high levels
It seems to be rising, but its strength is getting weaker and weaker
Selling point: Take profit immediately or short sell if it falls below the lower track
Position: Short position first try 20%, confirm to increase position
Many people are bankrupt here! It looks like a slow bull market, but in fact, big funds are selling!
③ Spiral: The accumulation of suppressed energy before the market explodes
The trading volume is shrinking, and the K-line shrinks like a spring
Strategy: Trade on the side that breaks through, and follow with a small position
Position: 20% trial order, add 30% after confirmation
Don’t bet on the direction, wait patiently for the outbreak!
④ Inverted Head and Shoulders: Large-scale bottom reversal
The graph looks like a "W", which is a strong reversal signal
Buying point: After breaking through the neckline, the opportunity to buy before a strong rise
Position: Buy 30% when the price breaks through, add 30% when the price falls back, and add 20% when the price increases again
This structure often doubles after it appears!
⑤ Symmetrical triangle: direction selection during oscillation
Trend consolidation stage, direction is unclear
Buying point: Break through the upper edge of the triangle and follow the main force to enter the market
Position: 30% trial position, add another 30% after the price drops back to confirm
Be careful of false breakthroughs, don’t enter without large volume!
⑥ Psychological level of retracement: golden entry point
After a breakout, the price will often retest the previous high or key support
Buying point: The moment when the K-line stabilizes without breaking through
Position: Heavy position opportunity, enter the market directly with 40% position!
Such opportunities are rare, but when they appear, they are "low risk + high return"
⑦ Platform oscillation ➜ Main rising wave is ready to take off
The high-level consolidation is like a W shape, and the main force is cleaning up the floating chips
Buying point: Break through the upper edge of the platform again
Position: 30% trial position, strong increase to full position
Many people think it is a sideways trend, but it is actually a prelude to a big market trend!
Summary of recommendations:
“Graphics are not about predicting the future, but about discovering what the main forces are doing”
✅ Don’t be aggressive when entering the market, follow the trend with your own positions
✅ Set a stop loss when exiting the market, and don’t fight too long
✅ Combined with K-line patterns and transaction volume, it is more stable
✅ Every structure is worth looking at several times
If you like it, you can follow Lao Wang
Because you have a goal, everything is possible. The ideal of life is to live an ideal life. Actions are the answer, so I never ask why! If you're not destined to win easily, then stand up and run. Face all challenges and overcome them. You should prepare ahead of time, not worry about them. Only by giving your all can you realize your true potential. If you don't have talent, then keep repeating. Every challenge is difficult, but the road ahead is long and bright. Respect all voices, but only respect yourself. Do what you want to do, become who you want to be, and take your time! Everyone has a process of hard work!
A single tree cannot make a boat, and a single sail cannot sail far! In Erquan, if you don’t have a good circle and first-hand information about the cryptocurrency circle, then I suggest you follow Lao Wang, who will help you get ashore for free. Welcome to join the team!!!