I always remember when I first entered the market, I thought trading cryptocurrencies was very simple. So, I learned a few strategies and some candlestick patterns, and couldn't wait to prove my abilities in the crypto world. As a result, I paid a heavy price for my arrogance. Later, when my father found out, he gave me a severe scolding. That was the first time my father had reprimanded me since I was little. I then made a secret resolution to not disappoint him.
That night, I knelt on the ground, repeatedly blaming myself while holding my trading slip. My father, unable to bear it, told me that although there are 360 trades, and each can produce a champion, there is only one spot for the champion. Those who become champions have all thoroughly studied their respective industries. Without small steps, one cannot reach a thousand miles; without small streams, one cannot form rivers and seas. No matter how it changes, the essence remains the same. It's like a sword; no matter how skillful the smith, without iron, it cannot be forged.
In the first three years of trading crypto, I entered the market with a principal of 200,000, but ended up with only 10,000 left. Relatives and friends advised me to stop trading, saying it was foolish, irresponsible, and lacking ambition. I have heard all the harsh words, and at that time, I really almost gave up and looked down on myself.
But I just cannot accept it. I swore to my family to bet this 10,000 again! Then I calmed down and studied, unexpectedly, with this 10,000, I actually earned 25.6 million in three years!
I am not exaggerating; when you truly find a trading strategy that suits you and execute it steadfastly, you will absolutely have the ability to turn the tide and achieve a turnaround in life!
After a few years of exploring in the crypto space, many will accumulate some profound experiences and lessons. The following are core insights gained through real money and sleepless nights, applicable to most participants.
1. The cycle law is an iron law; surviving is more important than getting rich.
‘Bull and bear alternation’ never fails
A 4-year cycle (halving cycle + macroeconomy) is a historical law; bear markets can be bottomless (90% of projects go to zero), while bull markets can be crazily irrational. Surviving long enough allows you to wait for the next wave of dividends.
Position management = Lifeline
Always keep 2 years' worth of living expenses in cash, never go all-in, to avoid becoming a classic case of 'floating profits added to positions, losing everything.'
2. Information warfare: 90% of 'wealth codes' are scams.
Beware of 'insider information.'
Community signals, KOL promotions, exchange listing announcements… Most are traps to lure you in. Real opportunities often appear quietly (like early Uniswap airdrops, Bitcoin’s ten-thousand-piece pizza day).
On-chain data > social media
Learn to check the movements of whale wallets (like Nansen), contract positions, and Gas fee fluctuations, which are closer to the truth than following Twitter influencers.
3. Human nature game: Your biggest opponent is yourself
FOMO (fear of missing out) is the source of losses
Blindly chasing highs during surges ('this time is different') and cutting losses at floor prices during crashes is essentially being controlled by emotions.
Reverse thinking training
When market panic reaches its peak (like the LUNA collapse, FTX explosion), it is often a golden pit, but one must restrain the impulse to bottom-fish and build positions in batches.
4. Monetize cognition: If you don’t understand, don’t touch.
DeFi, NFT, new public chains
If you cannot clearly explain 'how smart contracts liquidate collateral' or 'how L2 compresses data', do not easily invest large amounts.
Dogecoin = gambling
Participate in MEME coins only with entertainment funds, assuming they will go to zero, beware of 'scientists' running ahead (like sniping opening bots)
5. Safety is number 1; returns come later.
Diversified asset storage.
Leave only trading funds on exchanges, store large amounts in cold wallets (Ledger/Trezor), and physically back up mnemonic phrases.
Anti-phishing mandatory course.
Do not click unclear links, do not authorize unlimited token limits, test new wallets with small amounts first. Hackers understand human vulnerabilities better than you.
Position allocation:
50% BTC/ETH (cornerstone against declines)
30% Mainstream track (Layer2, AI, Depin, etc.)
20% High-risk exploration (airdrops, early projects)
Bear market action checklist:
Regularly invest in Bitcoin (buy with eyes closed below $20k)
Brush interactions to ambush airdrops (Starknet, zkSync ecosystem)
Learn on-chain tools (Dune analysis, contract audit basics)
Absolutely do not touch:
Centralized finance promises high APY (Celsius as a cautionary tale)
Contract leverage exceeding 5 times (one spike can lead to zero)
Blindly trust national-level projects and 'Buffett endorsement'.
The last true statement
The biggest paradox in the crypto space
Most people pursue the 'hundred-fold myth,' but what truly changes fate often is
‘Regularly invest in Bitcoin during bear markets + gradually take profits during bull markets’—this boring strategy.
> Getting rich is survivor bias; a protracted battle is the right path for ordinary people.
Time will filter out speculators, leaving those who understand cycles, respect risks, and continually learn. Stay clear-headed, and you'll go far.
Entering the crypto space is like playing mahjong with four people revealing their cards; if you do not learn to 'read the cards', the probability of losing is naturally high.
The core of crypto trading lies in observing the market—watching trends, analyzing movements, studying historical performances. Different people can interpret different information from the market, but beginners should not enter blindly; without a solid foundation, they will ultimately face failure. This article will provide a practical guide for crypto novices, taking you from basics to advanced, mastering core trading skills to help you progress steadily in the crypto space!
I. Two major plays in the crypto space:
The core gameplay of the secondary market in spot and contract cryptocurrency divides into spot and contract, each with its own strengths:
1. Spot:
Suitable for small funds or investors with lower risk tolerance. If your funds are limited, such as 10,000 yuan (about 1,500 USDT), you can choose to buy mainstream coins like BTC or ETH at the bottom of a bull market and patiently wait for appreciation. In a bull market, spot prices can double or even increase tenfold, but it requires time and patience.
2. Contracts:
High risk, high reward, suitable for players with a certain judgment ability on the market. It is recommended to start with small funds, such as taking out 100 USDT, setting 50-100x leverage, using a position mode, and only using 10% of the funds (10 USDT) for each position. Initially trade by feeling, experience the market's fluctuations, and after losing everything, begin systematic learning.
II. Three steps for beginners to advance
1. Learn technical analysis in the initial trial:
① Use 100 USDT for practice, observe K-lines, trends, and indicators (like MACD, RSI, moving averages). Validate the success rate of technical analysis on historical K-line charts, become familiar with market rules.
② Advanced practice: Invest another 100 USDT according to learning outcomes to guide trading. At this point, there may still be losses, but execution will gradually improve.
③ Technical consolidation: Continue to invest 100 USDT, combine technical analysis and trading psychology, strictly execute the trading plan, and the win rate will significantly improve.
2. Master trading psychology:
Trading is not only a technical activity but also a psychological battle. Learn to control greed and fear, strictly implement stop-loss and take-profit strategies. Use technical indicators to judge market emotions, such as buying at support levels and selling at resistance levels, to avoid chasing highs and cutting losses.
3. Understanding the win-loss ratio: The difference between trading and gambling lies in the win rate and win-loss ratio, which can be optimized through technology and discipline. For example, if ETH rebounds multiple times at $1976, assuming you build a position at $2000 with a stop-loss at $1940 and a target price of $2103 or even $2200, the win-loss ratio can reach 1:10. This kind of high win-loss ratio opportunity is worth a try, but the premise is strict stop-loss.
III. Common misconceptions and counter-strategies for beginners: Leverage misunderstanding:
Many people believe that 100x leverage is definitely riskier than 1x, but the level of risk depends on position management and entry point selection. 100x leverage can flexibly add positions and turn losses into profits, but it requires cautious operation.
Recommendation: Initially choose high leverage (like 100 times), but control the position within 10%-25% of total funds to reduce the risk of liquidation.
Adding positions and position management:
1. Add to position: Add to position at support or resistance levels, with the amount being 2-3 times the initial position, quickly locking in profits.
2. Position management: Initial positions should not exceed 25%, avoiding full positions to leave enough funds to handle volatility.
3. Take-profit and stop-loss:
Take-profit: Gradually reduce positions after making a profit, locking in profits. Liquidate positions decisively when the trend reverses to avoid profit retracement.
Stop-loss: Set stop-loss levels near support or resistance. Once the trend goes wrong, execute immediately and do not oppose the position.
6. Frequent operations: Newcomers often incur losses due to frequent trading. Trading is not about quantity; it’s about quality. Patience is key to waiting for high win-rate opportunities and reducing ineffective operations.
7. Support and resistance levels:
Support level: A price level that is repeatedly touched without falling, a rebound point.
Resistance level: A price level that is repeatedly touched without rising, a point of retreat.
8. Methods: Connect high and low points within the cycle; the larger the cycle, the higher the reference value.
Four, Rolling position strategy:
The secret to growing from small funds to millions is rolling positions; it is an advanced strategy for crypto experts, suitable for amplifying returns under high win-rate opportunities. The following are the core steps for rolling positions:
1. Determine timing: Long-term sideways breakout: Breakout after volatility drops to a low point.
2. Bottom-fishing in a bull market crash: Buying opportunities after a significant market correction.
3. Weekly level breakout: Breaking significant resistance or support levels.
4. Market sentiment and news: Combine major events to judge entry timing.
5. Technical analysis: Confirm trends: Verify with multiple indicators such as moving averages, MACD, RSI, etc.
6. Identify key levels: Determine the validity of support, resistance, and breakouts.
7. Capture divergence signals: Reduce positions on top divergence, increase positions on bottom divergence.
8. Position management:
Initial position: 10% of total funds (e.g., use 100,000 from 1 million).
Adding position rules: Add to position after breaking through key levels, not exceeding 50% of the initial position each time.
Position reduction strategy: Reduce position in batches after reaching profit targets, with each reduction not exceeding 30%.
Position adjustment: Floating profits increase positions: Add to positions during trend breakouts or pullbacks to lower cost.
Base position + day trading: 50% of funds held long-term, 50% used for swing trading; or 30% base position, 70% swing; or 70% base position, 30% swing.
9. Risk management: Total positions should not exceed the risk tolerance range, diversify funds, avoid betting everything at once, monitor the market in real-time, flexibly adjust positions, and decisively stop-loss when necessary.
Five, The compound interest effect:
The wealth code for small funds: How to grow small funds? The answer is compound interest.
Assuming you have 10,000 yuan, achieving a 50% return each year can multiply your funds several times over the years through compound interest.
The following are suggestions for small fund operations:
1. Diversify risks: Split funds into 3-4 parts, use 1 part for trading each time, avoiding full positions.
2. Moderate leverage: BTC and ETH leverage should not exceed 10 times, and altcoins should not exceed 4 times.
3. Dynamic adjustment: Add funds when in loss, withdraw principal when in profit, and continue operating with profits.
4. Focus on mid to long-term: Instead of frequent short-term trades, it's better to seize a few doubling opportunities pursuing exponential growth.
VI. Fourteen major trading rules: Bottom-fishing rules:
Strong coins falling for 9 days show bottoming signals; decisively enter the market.
Take-profit rules: Consider reducing positions after two consecutive days of increases to lock in profits.
Inertia signal: After a cryptocurrency rises by 7%, it usually continues to rise the next day; hold patiently.
Trend code: The end of a pullback is the best entry point; go with the trend.
Market reversal warning: If it has been sideways for 6 days without a breakout, decisively change positions.
Stop-loss iron rule: If not profitable the next day, immediately liquidate.
Law of consecutive increases: After three consecutive days of increases, it may rise again for five days; take profits on the fifth day.
Volume-price bible: Buy on breakout at low volume, exit on stagnation at high volume.
Moving average strategies: Use the 3-day line for the short term, the 30-day line for the mid-term, the 80-day line for the main upward trend, and the 120-day line for the long term.
Reversal mindset: Small funds reject FOMO, strictly adhere to discipline, and grow through compound interest.
The crypto space has never lacked smart people; what it lacks are 'foolish people' who can control their hands and endure loneliness. While most people are obsessed with chasing highs and cutting losses, this steady strategy can yield unexpected returns.
Do you prefer to continue losing repeatedly on the 'smart path' or try participating in the market with this more solid, more sustainable approach? Many times, slow is fast.
Operations after 9 PM: During the day, news is chaotic and there are many false messages. After 9 PM, news stabilizes, and the technical aspects become clearer, making operations more rational.
Withdraw part of profits: Don’t fantasize about doubling every order. If you earn 2000 U, withdraw 500 U to your bank account, and restrain the desire to 'earn a little more.'
Use indicators for decision-making: Feels unreliable, I use TradingView to look at MACD (golden cross/dead cross), RSI (overbought/oversold), Bollinger Bands (contraction/breakout signals). Only enter when two or more signals are consistent.
Stop-loss and take-profit matching: When monitoring the market, manually move the stop-loss price up to lock in profits as they rise; if unable to monitor, set a fixed stop-loss at 3%.
Fixed weekly withdrawals: Money not withdrawn is just a number; withdraw 30% of profits to the bank account every week.
Watch K-lines without cutting recklessly: For short-term, look at the 1-hour chart. If two bullish candles appear consecutively, pay attention to long positions.
When the market is unclear, switch to the 4-hour chart to find support/resistance levels before making decisions. Avoid pitfalls: Do not exceed 10x leverage, and beginners should stay within 5x; do not touch altcoins or 'shitcoins'; operate a maximum of 3 times a day; never borrow money to trade crypto.
Trading relies on discipline, planning, and stop-loss/take-profit strategies, not impulsive luck. Thus, it is easier to make money in the long run.
The loneliness of full-time traders comes from three barriers:
The cognitive gap with family: The concept of trading for a living has not yet been popularized; family members often find it difficult to understand and support. If successful, they take it for granted, ignoring the storms you have endured; if you fail, the accusations of 'not being serious' pierce the heart like a sharp blade. The pressure of trading is a unique mental torture.
The isolation of human nature gaming: Trading is the most naked test of human nature, and a few years of trading career can encompass the ups and downs of ordinary people for decades. You reshape yourself in the market; your perspective, thinking, and reasoning logic will differ from others—this insight will distance you from those around you, like a warrior crawling out of the blood-soaked trenches; those who have never experienced the battlefield can never understand the tremors of your soul.
The island of trading systems: Seasoned traders all have their unique 'martial arts mindset', loyal only to their own systems, inherently alienated from others' methods. Moreover, trading philosophies vary widely, even peer exchanges often fall into the awkwardness of 'talking past each other'—those who can truly resonate are rare.
II. The dark side of trading: Reconstruction and the abyss of fragmentation
Living by trading, you will face a truth more brutal than loneliness:
The norm of a spiritual purgatory: Severe depression during low periods follows like a shadow, old worldviews are crushed by the market, doubts, abandonment, and misunderstanding flood in. You will oscillate between despair and madness: crying, isolating, grimacing, hearing voices... All negative emotions gnaw at body and mind, yet there’s no one to talk to; you can only bite down and swallow your teeth, drifting alone in the dark.
The painful process of self-reconstruction: The market will strip you down to your skeleton and force you to grow new flesh. Every liquidation and every round of market beating is a subversion of your understanding— you must tear apart your old self by hand and rebuild your trading logic and personality system from the ruins. This process is more painful than shedding skin.
III. Coexisting with loneliness: The trader's breakthrough strategy
If you are still determined to embark on this path, remember:
Accept loneliness, rather than fight against it: Treat loneliness as a network, it will force you to think deeply and build a stronger mental world. The market is the best teacher, and loneliness is the fiercest companion.
Establish a 'mental defense system': In low periods, use trading logs to review and redeem; in moments of collapse, use exercise and reading to tear apart negative emotions. Remember, the suffering that can kill you will ultimately make you stronger.
Always retain a 'human anchor': In the hell of trading, leave a window for your family, a ray of light for your life—do not let the market completely consume your connection to the real world, as that is your last line of defense out of the abyss.