Cryptocurrency 3 Years of Avoiding Pits: I Reduced Losses with 7 Experiences, Newcomers Shouldn't Rush In
After three years in the cryptocurrency space, I’ve encountered many pitfalls—following trends to buy new coins and losing half a month's salary, holding onto surging coins only to see them drop, and missing opportunities because I was reluctant to sell coins that hadn’t even earned back the transaction fees.
Later I learned: to make money, first choose the right strategy. Spot trading is stable but has a long cycle, while contracts are active but carry high risks. There’s no best strategy, only what suits you. Blindly following trends will only make you cannon fodder.
Here are 7 practical experiences, each one a lesson learned:
1. **Buying the Dip After 9 Days of Plummeting**
A dealer's wash cycle often lasts 9 days. If a coin drops for 9 days, entering a small position on the 10th day usually allows you to catch the rebound.
2. **Reducing Positions After 2 Days of Surge**
Money in cryptocurrency is made by selling. If a coin has risen for 2 consecutive days, I will reduce my position by 30%, so I won't make the mistake of stubbornly holding and facing losses again.
3. **Waiting 6 Days for Volume Breakout**
If a coin has been stagnant for 6 days, and on the 7th day it suddenly breaks out with volume, jump in quickly. I once used this tactic to recover two months' losses in three days.
4. **Sell if No Fees Earned by Next Day**
If the coin I bought hasn’t even earned back the transaction fees by the next day, I sell everything—time cost is worse than a small loss.
5. **“Three-Five-Seven Law” to Seize Opportunities**
Coins that rank third in gain often break into the top five, and the top five often enter the top seven. Don’t focus on coins you’re stuck with “waiting to break even,” as you might miss new market trends.
6. **Preventing “5-Day Crash” After 4 Days of Rise**
If a coin rises for 4 days, it is susceptible to a quantitative crash around 3 PM on the fifth day. I always reduce my position at that time and don’t bet on exceptions.
7. **Don’t Forget to Be “Stable” in Basic Strategy**
Invest regularly to average costs, hold long-term without chasing spikes or panic selling, only invest what you can afford to lose, and don’t enter the market with living expenses. It’s better to read news and follow reliable influencers than to guess blindly.
There are no secrets in cryptocurrency. Turn experiences into discipline. Don’t be greedy, don’t follow trends, and move steadily to go far. We can chat about @招财宝哥 .
