I have been trading in cryptocurrencies for 10 years and have earned 1.1 small goals. If you want to change your destiny, you must try the cryptocurrency circle. If you can't make a fortune in this circle, ordinary people will never have a chance in this life. A while ago, I had the honor of drinking tea with a big shot in the cryptocurrency circle and talking about the ups and downs of the cryptocurrency market.
His words shocked me deeply.
In a moment of impulsiveness, he suffered a margin call in just three days due to a contract transaction, instantly losing a staggering 50 million RMB. This painful lesson has become an indelible mark on his life.
Looking back on my journey in the cryptocurrency world, it's been a tumultuous and eventful one. From entering the market with just 50,000 yuan in capital, to riding the bull market and seeing my assets soar to tens of millions, I've weathered market fluctuations, and finally settled on a modest goal of 110 million yuan. Now, I'm poised to take off, awaiting the dawn of the next bull market, and I've secretly set a new goal of 300 million yuan.
In my opinion, the key to cryptocurrency investment lies in maintaining a positive mindset, with technical mastery taking a back seat. This calmness and composure may be the secret to my success and success in the cryptocurrency world.
The effectiveness of this strategy lies precisely in its unspoken opposition to human nature: it requires us to cast aside greed and fear, exercise calmness and decisiveness, reject personal assumptions, and steadfastly adhere to established principles.
In addition to my solid technical skills, I also adhere to the following ten rigorous investment strategies and principles:
Avoid pitfalls: Common misunderstandings of beginners
1. Buying the rising and selling the falling:
Buying in when you see a sharp rise and selling at a loss when you see a sharp fall are the main reasons for losses.
2. Overtrading:
Frequent trading not only increases transaction fees, but also makes it easy to miss out on real big market trends.
3. Confusing investment logic:
Using the method of speculating on Bitcoin to operate stablecoins, or vice versa, is a fatal cognitive error.
4. Ignoring safety:
Putting all your assets on an exchange and not backing up your private keys are fatal mistakes.
Advanced: Beyond Ordinary People
1. The magic of on-chain data
The real smart money is paying attention to on-chain data:
Exchange inflows and outflows: Large inflows may indicate selling pressure
Whale Wallet Trends: Large Players Often Lead the Market
Long-term holders' holdings: The movements of firm holders are worth paying attention to
2. Application of Cycle Theory
Bitcoin's four-year halving cycle is an important reference indicator.
The three previous halvings in history all saw astonishing price increases. Understanding the cycle allows you to be greedy when others are panicking, and fearful when others are greedy.
3. Profitability of Stablecoins
Don’t underestimate the income opportunities of stablecoins:
Lending platforms typically offer an annualized return of 3-10%.
Liquidity mining can bring considerable returns in volatile markets
Exchange financial management is simple and convenient
Risk Control: Survive First
1. Bitcoin’s unique risks
Price volatility risk: daily fluctuations exceeding 20% are normal
Policy risk: the impact of changes in global regulatory policies
Technical risks: potential vulnerabilities in blockchain technology
2. Special risks of stablecoins
Peg decoupling risk: the possibility of stablecoins decoupling from the US dollar
Smart Contract Risk: Possible Code Vulnerabilities in DeFi Protocols
Platform risk: the risk of the financial management platform closing down or running away
3. The wisdom of position management
The single transaction position does not exceed 10% of the total funds
Never fully invest, always have spare funds
Set a stop loss line, usually 5-10% of the purchase price
4. The key to psychological control
The market always swings between fear and greed.
When everyone is discussing cryptocurrency speculation, it is often a signal that the market has peaked; when no one is interested in the market, it is actually a good opportunity to make a layout.
Remember Buffett's famous quote: "Be fearful when others are greedy and greedy when others are fearful."
5. Prevention of technical risks
Large amounts of assets are stored in hardware wallets
The exchange only keeps a small amount of trading funds
The private key is stored offline and never leaked
Authorize DApp permissions carefully
Some advice for cryptocurrency novices!
1. Trading is the only way to change your social class! But don't get me wrong, I'm not encouraging you to use leverage to compete! Rather, the world is inherently full of leverage. While it's difficult for the poor to obtain free leverage, in the crypto market, it's incredibly easy to multiply your assets a hundredfold and compete. As long as you have enough knowledge, you can use leverage to change your social class.
2. Don't assume a large position guarantees invincibility! Contracts are essentially a slaughterhouse. Trading with just $1,000 is enough. Experts can easily profit from $1,000, then scale up to $5,000, then $50,000. Meanwhile, a novice can easily lose $50,000, then $500, then $500. This is essentially a mismatch between entry point selection and trading system. Experts only need a 10-point stop-loss. If things go wrong, they'll reverse course. Novices, even with 100 stop-losses and a trend reversal, continue to increase their positions to drive up the average price, ultimately leading to a margin call.
3. Don't blindly speculate on ups and downs! Ups and downs are all fluctuations, and fluctuations are your opportunities to make money. A trader doesn't need to know the future; they just need to know where they can rebound 20 points. Sell in, then reduce your position when you see a profit, using your profits to speculate on future potential. Set a stop-loss, and you're good to go. You don't need to know how much the market will rise today; you only need to pay attention to whether your order is currently profitable. If the floating loss exceeds your acceptable level, exit the market immediately.
4. Don't hold back on your orders. If you're wrong, you're wrong. This market can change your social status overnight, upward or downward. It constantly reshapes your perceptions. Capital is essentially about plundering liquidity. Your orders are their target, and your perception is what capital propaganda has led you to believe. Maintaining skepticism about the market, or even self-skepticism, is the key to long-term survival. The market will constantly reshape your perceptions. A copycat stock could plummet 90% today, and then plummet to zero overnight tomorrow.
5. Maintain a stable position. Each trade should have a fixed position size and stop-loss. This way, even if a stop-loss occurs, the next trade will quickly recoup the profit. Use low-multiple compounding to make friends with time. Take a break when you achieve a 5% daily profit. Even a 3% loss is fine. Each month, you can take 30% of your total profit and go all-in, betting on the future. Don't use your principal to bet on the future!
6. Learn to split your positions. Use 80% of your principal for spot trading and long-term, low-volume contracts, and 20% for short-term contracts to earn a daily wage. Regularly transfer profits to your long-term account. Keep your contract positions fixed and don't expand them. $1,000 is sufficient; experts can open 10 Ether positions with a 15-pip stop-loss.
7. Make regular withdrawals! Withdraw your profits every month. Remember that the contract will eventually return to zero.
If you want to succeed in the cryptocurrency circle, learning to trade in cryptocurrencies is the dead end. Please train your brain hard!
To be honest, there is nothing mysterious about the cryptocurrency world.
Anyone who can make money here basically relies on one thing,
I am a little smarter than I was yesterday.
But most people are not stupid, they are just lazy.
Too lazy to use my brain, too lazy to review, too lazy to establish a system.
The first thing I do when I wake up every day is,
"Did anyone send out an airdrop? Which big V is calling for an order again?"
Queue up and be the leeks.
You think you are speculating, but in fact you are just watching others eat.
What's the most heartbreaking thing about the cryptocurrency world? You lose so much money that you don't even know how you died.
"People said this track was good, so I rushed and fell."
"People are talking about AI narratives, and it exploded, so I rushed in again."
The problem is: you don’t even know when others are shipping the goods.
Why?
Because you have no idea why others buy, when they sell, or how to control risks.
You only see the results, not the deductions.
Others are models, you are emotions.
Others enter the market logically, but you are just being angry.
So I advise you, don't always think about who can take me flying,
Ask yourself first: Can you think independently for ten minutes?
Indeed, it is difficult to make money from you if you are allowed to think independently.
The dumber they are, the easier it is to fool them and the easier it is to cut them, so the sickle knows it tacitly.
Oh yes, there are also some old-fashioned ones who like to pretend to be profound, which can also hurt you.
For example, I hate people who recommend book lists to you all day long.
What (Reminiscences of a Stock Operator) (Financial Alchemy)…
OK, I watched them all, and later I found that they were just so-so.
The rhythm of the currency circle is real-time.
The book is still talking about the stock market crash of 1929, and your AI token has already tripled.
Even AI can’t keep up with the pace, so why read Mao’s books?
My experience is:
Direct review.
I saw a project was popular.
Dig into its on-chain data, see how it markets, and analyze its community structure.
Seeing a project die,
Don't curse, review how it failed.
Reviewing is ten thousand times more effective than reading a book.
Because books are other people's experiences,
Reviewing is your own blood.
All my improvements come from reviewing.
We will clear each order one by one and repair each mistake one by one.
When you have no inspiration,
I just turned on the AI chat and let it review the game with me, reason with me, and fight with me.
This is what learning is.
Learn about the market, not books.
Don't read, don't read, don't read! ! ! !
Write if you can
Some people appear to be thinking, but in fact they are just taking things for granted.
Say "I understand this logic",
If you really ask him to write it down, he will be exposed immediately.
Because writing forces yourself to speak clearly.
After writing a logic, you will see:
This part is vague, that assumption has no evidence, and this logic is purely based on feeling.
Write is your debug tool.
I never write for others, I write for myself.
Even if no one likes it, I will still write it.
Because the more you write, the easier it will be to catch your blind spots.
Sometimes just one sentence can save you tens of thousands of U.
Sometimes, you can even save others.
Don’t learn to trade cryptocurrencies by looking at graphs, learn the data and direction
The data on the blockchain is fully public.
But most people only know how to check the K-line, look at the red and green K lines, and stare at them.
My goodness, they think they can control the market just by looking at the K-line. What are these idiots' brains on? And with so many people flocking to it, it feels like someone can calculate when they'll find money just by looking at their hands.
You're like a blind man touching an elephant.
Do you really want to see the market direction in advance?
Learn a little data analysis.
Dune, Nansen, and DefiLlama can all allow you to see it a week earlier than others.
for example:
See which pool the liquidity enters, see how big players enter and exit, and see if the protocol income is sustained.
Trends don't come suddenly; the data moves first.
The "information gap" in the cryptocurrency world is no longer a matter of access.
It's a question of who interprets it first.
Yes, you're right. I never believe in metaphysics. I think if I believe in these things, I will be easily taken advantage of by others, who may be bored or want to make a fortune.
If you have the conditions, you still have to learn development
It's not hard to write a two-line script.
ChatGPT can help you write.
But the difference is huge.
Others click manually, and you set up a reminder script;
While others stay up all night watching the market, you set up a conditional order script;
While others are chasing project airdrops, you write an optimization script.
Even if it's just automatic reminders, you're half a step ahead of others.
The point is not to save time,
It is to train you to systematize your trading logic.
The process of writing code is an anti-human process.
Because code doesn't recognize emotions,
It only recognizes logic.
And logic is the only way to make a profit.
Next comes universal creativity, universal development, and universal digital life.
If you can't keep up, you will be eliminated. It's a very simple logic.
Mixing circles and information sources
The network of relationships in the cryptocurrency circle is open.
You need to know how to demonstrate your value in public instead of asking for resources.
Others are willing to take you with them because you are valuable.
For example, you can interpret trends, write scripts, organize data, and make reports.
Output first, then connect.
Just like our investment research group, you come here to eat for free? Give money, thank you, you don’t contribute anything, and you just lurk there like an old bitch every day, what’s the point?
The more altruistic you are, the easier it is to achieve true self-interest.
In the end, the biggest asset is a few reliable friends.
They can communicate with each other, trust each other, and help each other.
This is more valuable than the money earned in a bull market.
Before A7, there was no capital compounding, but from the beginning to the end, there was compounding in the mind.
Too many people like to talk about compound interest. Compound interest is bullshit. If there are not even a hundred of them, how much compound interest can there be?
What I see more is a group of people who have no accumulation and cannot make money in every bull market.
If your cognition is not upgraded, you won’t know that your brain can compound interest.
The cycle of the cryptocurrency world is one where cognition accumulates over and over again.
Most people become rich once and then lose everything.
Because the money you earned that time can't cover your stupidity next time.
But those who can really live a long life do not rely on good luck. Those who always talk about their fate are complete losers.
Please stick to the ability to review, accumulate, and be willing to grow, which is the right way.
You can stop making money temporarily, but you can't stop growing.
Because growth compounds, the brain compounds, and cognition compounds.
Just like those idiots who think AI can be monetized, without even touching it or using it once, yet they still want to monetize it.
If you can see this, you must be no ordinary person.
Most people must have felt heartbroken and withdrew.
But if you really want to win,
Please push yourself to grow a little bit every day:
Write something, review something, automate something.
After practicing this set of things, you will find:
It doesn't matter whether the market goes up or not.
You yourself are the asset that can continue to grow.
I was able to turn things around thanks to the cross mantra I discovered myself:
👉 One word: Forbearance
👉 Two words: Avoid greed
👉 Three words: Discipline
👉 Four words: rational layout
👉 Five words: Follow the main force
👉 Six words: Only play what you understand
👉 Seven words: Focus on the core value
👉 Eight words: The market is the best teacher
👉 Nine words: advance and retreat with moderation and rational strategy
👉 Ten words: Good attitude, no hesitation, and endless learning
After 10 years of practice, I have come up with the following "Six Iron Laws":
1️⃣ Know how to take profit and stop loss, and don’t fight against the market.
2️⃣ Don’t fantasize about buying the lowest and selling the highest, just catch the range.
3️⃣ Look at the volume, don’t just focus on the K-line.
4️⃣ Act quickly, don’t hesitate.
5️⃣ Learn to rest and don’t place orders randomly every day.
6️⃣ The real big opportunities are often hidden after a crash.
To put it bluntly, the competition in the cryptocurrency world is not about who is smarter, but who can survive to the end.