Rome was not built in a day, and wealth in the crypto world cannot be accumulated in a single trade.
As a veteran who has been in the crypto market for ten years, I have witnessed too many stories of overnight wealth and sudden losses. In 2015, I entered this market with 200,000 capital, experiencing countless nights of liquidation and also enjoying the wealth multiplication that comes from seizing trends. Ultimately, I found that real profit is not about predicting the market but about adhering to rules.
This market allows early geeks to mine Bitcoin with ordinary computers and has left many speculators empty-handed during various token issuances. Some say Bitcoin is the form of future currency, while others believe it is just another speculative bubble. Regardless, this market still exists and is becoming increasingly mature.
Why do most people's trading systems fail?
Many newcomers blindly follow so-called 'expert strategies', and the results are often unsatisfactory. This reminds me of an observation by veteran Shen Xiaofeng in the cryptocurrency circle: 'Many people buy coins with the mentality of 'trading stocks', 'trading garlic', and 'trading soybeans.'
Knowing does not equal understanding; understanding does not equal execution. I once shared a trend-following strategy in Knowledge Planet, clearly stating to only follow trends with 'energy above 80%'. The result was that the same system yielded vastly different results for different people.
Where is the problem? Most people only superficially imitate without deeply understanding the logic behind the strategies. For example, when they see a rising market, many rush to buy, neglecting whether this market truly has sustained momentum. Often, what is perceived as a strong trend initiation is actually a broad fluctuation market of 'three steps forward, two steps back.'
A required course for survival in the crypto circle
In my years of trading experience, I have summarized a few crucial principles:
First, position management is always more important than timing. Experienced trader San Ge once reminded: 'Bitcoin is a high-risk asset; you must do less leverage and hold more spot.' My own principle is never to use more than 3 times leverage and to diversify funds into different directional positions.
Second, market sentiment is a contrarian indicator. When various chat groups are bustling, it often signals market peaks; conversely, when the market is silent, it may be a time for positioning. A contract platform operator observed: 'BTC sold early, now no one dares to buy, holding onto altcoins that aren't rising, those missing opportunities are still missing out.' This common mindset creates market opportunities.
Third, cognitive boundaries determine profit margins. A post-90s investor Xu Zhou exited after Bitcoin's price doubled. Although Bitcoin continued to rise later, he insisted, 'Everyone can only earn money within their understanding; I can't comprehend the current market.' This kind of restraint is the wisdom of survival in the market.
From technical analysis to the upgrade of market essence understanding
In the early days, I was also obsessed with various technical indicators and complex analytical methods. Later, I realized that simple strategies are often the most effective. Now my trading system only needs to consider three factors: trend judgment, timing of entry, and risk control.
The biggest difference between the cryptocurrency market and traditional investment markets is its 24-hour uninterrupted trading and high volatility. This means more opportunities but also greater risks. Analysts point out that Bitcoin's price has increased more than 10 million times in the past ten years, but the number of crashes during that period is equally astonishing.
True trading masters have not avoided losses but can learn lessons from them. A trader named San Ge shared his two significant mistakes: one was in late 2018, when Bitcoin dropped from $6,000 to $3,200, and he kept trying to catch the bottom, resulting in a loss of half his capital; the other was in 2019 when trading XRP contracts, which led to liquidation overnight. These lessons made him more cautious about catching bottoms and tops and avoiding non-mainstream contracts.
Honest words for newcomers in the cryptocurrency circle
If you are new to this market or still struggling with losses, the following suggestions may be helpful to you:
Do not invest with urgent money. The cryptocurrency market is highly volatile; you should only invest funds that you can afford to lose entirely to maintain a balanced mindset.
Prioritize learning. Before investing real money, first understand the basic principles and technical characteristics of blockchain. As a seasoned player once said, 'Only those who see the logic clearly have a chance; if you blindly enter without knowing anything, you will definitely be cut like leeks.'
Start small and gradually accumulate experience. Experienced players suggest that newcomers should not invest large amounts of money at the beginning but should first familiarize themselves with market characteristics through small trades.
Avoid frequent trading. The 24-hour trading characteristic of the cryptocurrency market can easily lead to addiction, but over-trading is often the root of losses.
A senior analyst named Xiao Lei once expressed his views on Bitcoin investment: 'After this round of the 'bear market', investors will be more rational.' Indeed, in this market, rationality is your most powerful weapon.
Conclusion
The cryptocurrency world is a testing ground for human nature, wisdom, and patience. True trading masters have not avoided failure; they learn how to stand up again after failing.
Market opportunities always exist; the key is whether we are prepared. An early Bitcoin participant is confident: 'As the best currency system, Bitcoin will definitely enter everyone's daily life in the future.' Whether you agree with this view or not, the changes brought by blockchain technology are irreversible.
Successful trading is actually quite simple: find a method that suits you and persistently execute it. This applies not only to the crypto world but to all aspects of life.
A sunny day will always come, but only the prepared fisherman can catch a full net. The door to the cryptocurrency world is always open; the key is what attitude you enter with. Follow Bing Ge to learn more first-hand information and cryptocurrency knowledge, becoming your guide in the crypto world; learning is your greatest wealth.
