A few days ago, I met a friend I got to know in the cryptocurrency circle for coffee. She is a post-2000s from Hunan and is currently working hard in the Greater Bay Area. Not only is she outstanding in appearance, but her values are also very positive. What is most astonishing is her skill in trading cryptocurrencies—within just 5 years, she has grown from a novice to an expert with an annual income reaching 8 figures.
During our conversation, she calmly said, "Making money isn’t that complicated. Just solidify the basics." At that moment, I took down her practical insights on two pages,整理成实用干货, and today I’m sharing it with those who are destined to find it useful. Whether you are a newcomer just stepping into the cryptocurrency circle or an 'old leek' who has stumbled before, it’s worth keeping this for repeated study.
1. Engage in shallow investments without blind following: if funds are limited, focus on core opportunities; securing one certain upward trend in a year is sufficient, and ensure to keep more than 30% cash available to handle sudden declines and avoid the embarrassment of being fully invested.
2. Understand the fundamentals before taking action: never touch unfamiliar currencies, use demo accounts to refine operational logic, but the mindset for real investments is entirely different; first understand the underlying logic of the project before considering entry.
3. Quickly take profits when good news materializes: if you haven’t exited on the day good news is released, the next day’s high opening is the best exit opportunity. The market often sells off based on good news, and delaying can easily lead to holding onto chips that end up in your hands.
4. Manage risks in advance during holidays: market liquidity shrinks during holidays, making prices prone to extreme fluctuations; reduce positions a week in advance to lock in profits, as having a stable holiday is far more reliable than gambling on the market.
5. Use a phased strategy for medium to long-term positions: build positions in phases to dilute costs during declines, and take profits in phases during rises to secure gains while keeping flexible capital to calmly respond to market fluctuations.
6. Keep a close eye on short-term liquidity: stay away from low-volume currencies, as they have weak buying power and can trap you upon entry. Follow the flow of large funds and choose actively traded varieties; only then can you exit smoothly after making profits.
7. Understand the logic behind price movements: currencies that decline slowly often have repair opportunities with a slower rebound pace; currencies that experience sudden crashes are often accompanied by quick rebounds; these opportunities can be captured, but it’s essential to know when to take profits.
8. Stop-loss is a life-saving bottom line: if the market moves against your expectations after buying, don’t cling to false hopes; decisively cut losses and acknowledge mistakes. Preserving capital is essential for recovery; waiting for a turn while stuck will only deepen the losses.
9. Focus on key indicators in the short term: pay special attention to the 15-minute candlestick chart, using KDJ as the core to judge overbought and oversold signals, supplemented by MACD and RSI for validation, to avoid misleading decisions from a single indicator.
10. Focus on precision in technical analysis rather than complexity: mastering 2-3 core indicators is sufficient, such as thoroughly understanding the use of KDJ and MACD, which is far more practical than trying to learn too many indicators and having a confused mindset.
In fact, the core is two words: restraint. Restrain the urge to make quick money, restrain the impulse for frequent trading; preserving capital and seizing major opportunities is the key to long-term survival in the cryptocurrency circle.
Remember these 10 practical insights; they might help you turn the situation around, shifting from passive following to active control. There’s no need to pursue comprehensiveness; mastering half is enough to outperform the majority of those who enter blindly.
I used to stumble alone in the dark, now the light is in my hands.
The light is always on, will you follow?
