Usually practice in a small account, only take action when the signal is right
Many people ask me, can you really make money in the crypto world? My answer is definitely yes, but it absolutely does not rely on blindly following trends or getting rich overnight. As someone who has been in the crypto world for many years, today I want to share some real insights with you all.
I remember when I first started in the crypto space, I also began with tens of thousands of dollars. To be honest, there are indeed many opportunities in the crypto world, but there are also quite a few pitfalls. The key is to find a method that suits you and to strictly adhere to discipline. Below, I will share my summarized experiences with everyone, hoping it can help you.
First adjust your mindset: A million is not as unattainable as you imagine.
Before thinking about making 1,000,000, we need to clarify one question: Is 1,000,000 within your cognitive realm or beyond it?
If you have never had 1,000,000, you need to break your mental limitations first. Suppose you have 100,000 in capital, a 10x increase means reaching 1,000,000. In the crypto space, 10 times is not an astronomical figure, but it cannot be achieved by simply gambling. What we need is a planned and step-by-step execution, not luck.
My advice is: Don’t think about achieving everything at once. Break your goals down into several stages, such as first going from 100,000 to 200,000, then to 500,000, and finally to 1,000,000. Each stage has different strategies and methods.
Choose the right track: Do not put all your eggs in one basket.
Many newcomers make a mistake: betting everything on one coin. This is actually a very dangerous behavior. My capital allocation strategy has always been like this:
Mainstream coins account for 50%: Bitcoin and Ethereum are essential. Bitcoin, as the cornerstone of the crypto market, still has significant growth potential in the long run; while Ethereum, as the leader in smart contracts, is relied upon by almost all DeFi and NFT projects.
Stablecoins account for 30%: This part of the funds is reserved for opportunities. The volatility in the crypto market is significant, and having cash on hand is key when there’s a chance to pick up cheap chips.
Potential small coins account for 20%: Coins with potential like SOL and AVAX can be allocated appropriately, but the proportion must be controlled.
This allocation ensures both stability and aggressiveness. The key is not to invest everything at once, but to adopt a dollar-cost averaging strategy, investing a fixed amount each month to average out the cost.
My core strategy: Seize the right moment and roll your position reasonably.
There is a saying in the crypto space: 'Make money in a bull market, earn coins in a bear market.' My strategy is: operate with small positions normally, and only increase the position when highly certain opportunities arise.
What are highly certain opportunities? In my view, there are three key signals:
Firstly, after a sharp drop, a long-term sideways market suddenly breaks out upwards. This often indicates a trend reversal and is a good entry point.
Secondly, the daily line stands above the key moving averages, with volume and price rising together. When the price breaks through important resistance levels and the trading volume significantly increases, it indicates that market sentiment has truly warmed up.
Thirdly, market sentiment is extremely pessimistic, while retail investors are still cursing. This is often the stage where the main forces are quietly building positions.
In terms of specific operations, I always adhere to the following principles:
Capital must be profit: I never use essential living funds to play rolling positions, only using profits earned in the early stages.
Strictly control leverage and position: Total position should not exceed 10%, and leverage should not exceed 10 times, so the actual leverage is only 1 time, keeping the risk manageable.
Firmly set stop-loss: Set a 2% stop-loss point for each trade, and leave decisively when reached, keeping your bullets for the next opportunity.
For example, with a capital of 50,000, following this strategy and capturing a wave of 50% main upward movement, compounding can reach around 200,000. Catching one or two more waves, the goal of 1,000,000 is not far away.
Risk control: Staying alive is more important than making quick profits.
In the crypto space, survival is the top priority. I have seen too many people lose everything overnight due to greed. Therefore, my risk control principles are very strict:
Do not participate in volatile markets: When there is no clear trend, it is better to stay out and wait than to rush in.
Do not touch coins that are in a downtrend: Coins in a downtrend are like flying knives; do not attempt to catch them.
Do not blindly chase hot trends: Many trends come quickly and go just as fast; waiting until you follow them may mean you are just picking up the pieces.
Regularly withdraw profits: After each successful operation, I withdraw 30% of the profits to secure them. This prevents profit drawdown and gives a sense of achievement.
Keep learning: A day in the crypto space is like a year in the human world.
The crypto space changes very quickly; continuous learning is key to long-term survival. I spend time every day researching industry trends, new technologies, and new projects. Focus on reliable information sources, participate in quality community discussions, and continuously improve your understanding.
At the same time, do not let short-term price fluctuations affect your judgment. There is a lot of market noise; what’s important is to maintain independent thinking and stick to your investment strategy.
Earning my first million in the crypto space is not the end for me, but a new starting point. The most important thing along this journey is not how much was made in a single instance, but to form your own trading system and to be able to execute it stably over the long term.
Opportunities always favor those who are prepared. In the crypto space, patience is more important than IQ, and discipline is more crucial than skill. I hope my sharing can inspire everyone, and I wish everyone can find their own path to wealth in the crypto space.
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