During my ten years of trial and error in the field of digital currency, I successfully accumulated a small achievement of 110 million. If one wants to rewrite the trajectory of their life, entering the cryptocurrency space is undoubtedly a venture worth trying. If one cannot dig out the first pot of gold in this field, it may truly be difficult for ordinary people to find a chance for a turnaround. Not long ago, I had the privilege of sharing tea with a heavyweight figure in the cryptocurrency space, discussing the turbulent winds of the digital currency market.
A shared personal experience deeply moved me.
He once suffered a liquidation due to impulsiveness in just three days of contract trading, losing an astonishing 50 million RMB in an instant. This painful lesson became an indelible mark in his life.
Looking back on my journey in the cryptocurrency space, it has been dramatic, full of changes. From initially stepping into the market with a capital of 50,000 yuan to experiencing a bull market surge, with assets skyrocketing to tens of millions; then going through market ups and downs, my net worth fluctuating several times, ultimately settling at a small target of 110 million. Now, I am preparing to seize the next bull market, silently setting a new target of 300 million in my heart.
My trading philosophy is not complicated, yet effective. In just one year, I doubled my assets to eight figures. My winning strategy lies in focusing on one market pattern, waiting for the best opportunity to decisively strike, and not acting lightly when there is no ideal pattern.
Over five years, I maintained a high win rate of over 90% with extraordinary patience and precise judgment. This persistence and wisdom are the solid foundation for my success in the cryptocurrency space.
Everything in this world cannot escape the 80/20 rule, known as 'eight lose, one break even, one profit.' The financial market, including the cryptocurrency space, is the same; 20% of people control 80% of the wealth, and those who can profit from trading coins are ultimately the minority, while the majority are just fodder.
If you are in a state of loss but unwilling to accept it, unable to find reasons, and feeling confused, rather than engaging in self-inflicted turmoil, why not first find the reason? Consider a few questions to understand the rules of the cryptocurrency space. Before the article begins, let me pose a few questions for you to ponder.
1. Am I one of the 20% or one of the 80%?
2. What qualifications do I have to make money in this industry?
3. Who in this industry is making money?
4. Have I studied seriously? Can my knowledge base surpass that of most investors?
5. Do I have the ability to think independently?
6. Is my investment strategy merely following the calls of group friends, bloggers, or KOLs?
7. In the face of the market manipulation by the big players, can I remain calm like still water amidst the bloodbath?
Of course, there is no need to belittle oneself; this is a law of the world, not our fault, and we cannot change it. If one day the capital market turns into a situation where most people make money and a few lose, that would be strange. The market is merely a channel for transactions; the market itself does not generate profits. For instance, with Bitcoin, during the process of you buying and me selling, Bitcoin itself does not generate profits.
Making money from trading coins refers to the price difference generated during the trading process; in simple terms, if you make money, it is because someone bought at a high price; if you profit, someone else must lose.
Assuming there are ten participants in the cryptocurrency market, each with 10 yuan.
If a minority makes money, one person earns 2 yuan from the other nine; this person then has 28 yuan, and the other nine have 8 yuan, so the game can continue. If the majority makes money, nine people earn 2 yuan from one person; then the nine people have 11 yuan, and one person not only loses everything but also owes 8 yuan, making it impossible to continue the game.
If a minority makes money, the market can sustain itself; if a majority makes money, the market will collapse.
It's similar to a lottery; if most people can win, the lottery company cannot continue operating. Only when the majority fails and a minority wins can the lottery company sustain itself.
So, the cryptocurrency market will use every method to make most people lose money. How to become one of the few who make money?
The factors leading to losses in trading coins are many, but can be summarized into the following six points; as long as you go against these six points, you can become a unique individual.
1. Serious short-term thinking
In simple terms, we should look at the long term; everyone discusses and sees how much it has risen today, how much it has fallen tomorrow... instead of considering how this coin will perform in half a year or a year. Everyone can see that those who have achieved financial freedom in the cryptocurrency space, the so-called 'gods', are not the ones who make money in just three to five days; they endure through time.
Reasonably allocate positions, focusing primarily on long-term positions, with medium and short-term trades as a supplement; if you can accurately predict short-term trend changes, you should follow them.
2. Chasing highs and cutting losses
Chasing highs and cutting losses is a mistake almost every cryptocurrency investor makes. When they see a coin surge, and the whole world is discussing it, they follow suit and buy in. After being trapped and losing 10% or 20%, they are reluctant to cut losses and wait for the day they can break even. When the price continues to drop, losing 50% or even 60% or 70%, they then feel that the coin is no good and cut losses down to rock bottom.
Then repeat that step time and again, and chasing highs and cutting losses really doesn't have any good solutions; it's a psychological issue.
3. Insufficient understanding
Many people do not think before investing; they simply follow what others say. Today, a certain influencer says this coin is good, and they immediately buy it! Tomorrow, some insider news says that coin will rise, and they buy it too... As for why this coin is good, or why that coin will rise, they have no idea.
This brainless way of investing makes it impossible not to lose money; we can use others' understanding as a reference when investing, but before that, we must establish our own understanding. No matter how powerful a KOL is, they first built their position before allowing you to follow suit; they will only remind you after they cut their losses, leaving you to carry the weight.
4. An overly restless heart
Impatience seems to have become the norm in the cryptocurrency space; many people enter this market with the mindset of overnight wealth but are not prepared for an immediate loss and lack the ability to become wealthy overnight! After buying a coin, they hope it will rise immediately, double in three days, or increase tenfold in half a month... If the coin does not rise in half a month or even incurs losses, they start to make excuses for themselves, cursing the project for poor market management, cursing the manipulators for crashing the market, and blaming the big V for inaccurate predictions...
Having seen too many stories of overnight wealth in the cryptocurrency market, and with almost every time period around me witnessing the birth of tenfold and hundredfold coins, I subconsciously regard the cryptocurrency market as a 100% sure-win casino, believing that as long as I buy coins, I can make money, without seeing it as a real financial market, where bloodthirstiness is the essence.
5. Not learning
Previously, the media conducted a statistical analysis on investors' understanding of digital currencies, among 778 randomly selected digital asset investors, less than 10% could quickly and accurately describe 'what Bitcoin is roughly.' Only 17 individuals could accurately explain 'what blockchain technology is.'
Although the sample size of this data is small, it is sufficient to indicate the current state of investors in the cryptocurrency market. If one cannot even understand what they are investing in, how can they have faith? Without faith, no matter how low the price or how good the coin, how can one hold on?
Learning is an everlasting wealth; only through continuous learning can one avoid being harvested.
6. Lack of sound investment philosophy
Most people do not have a complete investment plan before investing and simply go with their feelings. This kind of instinct-driven investment method, once faced with unexpected situations, will likely lead to losses. Only by summarizing a set of investment strategies suitable for oneself can we cope with various situations, whether rising or falling, and calmly deal with them. This way, we can at least keep our mindset undefeated and prevent our mentality from leading to wrong choices.
Finally, I advise everyone not to be arrogant after making money. Assume you hit a hundred-fold coin by chance; you should find ways to safeguard that wealth. That is not your ability; money earned by luck will be lost through strength! Stay away from easily brainwashed individuals who often speak of surpassing Bitcoin or the blockchain revolution, when they do not even understand what a block is. These are typical one-track thinkers; when you tell them the truth, they will still insist you lack understanding.
To survive in the cryptocurrency market, you must first learn these few tricks!
How do retail investors trade?
They are accustomed to using their own theories to predict the market; when divergences appear here, or a W-bottom appears there, or when the main force enters here, they choose to jump in based on these conditions. In the end, when the market does not align with their expectations, they stubbornly insist that there must be opportunities here, just requiring a little time, implying they bought too early, mistaking temporary pullbacks.
When the market trend increasingly diverges from one's expectations, one forcibly comforts and hypnotizes oneself, thinking that the market is slightly oversold here, and thus cannot sell; perhaps a turning point is just around the corner.
Ultimately, when the funds reach a loss that one cannot bear, they lament and reluctantly cut losses. At that moment, however, they find that as soon as they exit the market, it immediately reverses. But this trading failure has severely damaged their trading confidence; even when the market begins to recover, they are afraid to enter again.
How can one make money from trading coins? What are the methods of trading coins?
Beginners need to have a certain level of basic knowledge to make money from trading coins, choose a suitable trading platform, develop reasonable investment strategies, choose appropriate projects, and maintain calm and patience. The following is a detailed introduction:
1. Have basic knowledge
Understanding different digital currency projects, technologies, and market trends is very important. You can learn by reading relevant books, participating in online courses, or joining communities. It's essential to closely monitor market dynamics and understand the risks and opportunities in the market.
2. Choose a suitable trading platform
It is very important to choose a safe, reliable platform with low trading fees and a good user experience. When selecting a platform, one can refer to the evaluations and recommendations of other users, and understand the platform's security measures and fund protection mechanisms.
3. Develop a trading strategy
Beginners need to develop their own trading strategies. The cryptocurrency market is highly volatile, and investors should have their own trading plans and risk control strategies. They can determine trading strategies based on their risk tolerance and investment goals, such as long-term holding, short-term trading, or arbitrage. It is important to set stop-loss and take-profit points to avoid excessive losses or greed leading to missed profits.
4. Be cautious when selecting investment projects
Beginners should carefully choose investment projects. When selecting investment projects, they should thoroughly research factors such as the project's background, team, technology, and market prospects. They can refer to the opinions and ratings of professional institutions or investors to make decisions. It is important to diversify investment risks and not invest all funds into a single project.
5. And remain calm and patient
The cryptocurrency market is highly volatile, and investors should be psychologically prepared. Do not be influenced by market emotions; follow your own trading strategy and plan. Have the patience to wait for suitable opportunities, and do not blindly pursue short-term profits but rather focus on long-term investment returns.
In the cryptocurrency space, if you do not have a good circle or insider information, I suggest you follow me to get out of the water; welcome to join the team!!!
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