A good old friend of mine has been struggling in the cryptocurrency world for 7 years. Using the most 'foolish' method, he turned an investment of 500,000 into over 50 million!
He is 42 years old this year, from Shanghai, and lives a very ordinary life: 5 houses, 1 for self-use, 1 for family, and 3 for rental. In his 7th year of trading cryptocurrencies, his capital has multiplied hundreds of times, not relying on insider information or luck, but adhering to a simple set of principles.
Today I will share his experience, which may help more cryptocurrency enthusiasts:
【Six Iron Rules of the Cryptocurrency World｜Understanding them is worth more than learning ten different techniques】
1️⃣ Rapid increases and slow decreases = Accumulation
A fierce rise followed by a gentle pullback often indicates that large funds are secretly accumulating. Don't be scared off by small dips; pay attention to the rhythm.
2️⃣ Rapid decrease and stagnant rise = Distribution
A quick drop followed by weak rebounds usually indicates that the main force is retreating. Don't think you're getting a bargain; be careful not to become the one left holding the bag.
3️⃣ High volume at a peak ≠ Definitely a top
Increased volume at a peak may continue to push higher; conversely, if volume decreases at the top, it is very likely a signal that the market has reached its peak.
4️⃣ Be cautious of single large volume at the bottom; multiple large volumes are safer
A single large transaction may be a false move, while continuous large volumes represent a true consensus forming.
5️⃣ Trading cryptocurrencies is about emotions; direction comes from consensus
Don't get lost in complex charts; market psychology is the core. Volume is the reflection of consensus.
6️⃣ 'Nothingness' is the true realm
Without obsession, greed, or fear, one may survive long-term. Those who can patiently wait for opportunities in cash have the qualifications to benefit from significant market movements.
One last point: the real enemy in trading is not data, not news, but your own mindset. So-called news, policy, and price manipulation are merely appearances; the biggest variable is always human sentiment.
The cryptocurrency world is full of uncertainties and challenges, but it also nurtures opportunities. Staying calm and rational, and responding to changes with a steady strategy, is the only way to go far.