Crypto Trading Insights: From 100,000 to 20 million, my trading experiences.
Master these skills, and you too can achieve stable profits in the crypto world.
1. Beware of Bull Market Traps
The risks of popular coins during a bull market are enormous.
Retail investors are easily driven by FOMO emotions to chase prices, but these coins often have severe control and excessive bubbles.
Countermeasure: Better to miss out than to chase coins that have risen over 50%.
The sharp rise and fall of new coins after their launch is the norm.
Coins strongly promoted by exchanges usually skyrocket quickly and then plummet, resulting in losses for retail investors.
Iron rule: Observe new coins for 3 months before making decisions to avoid emotional trading.
2. See Through the Scam Coins
The life cycle of scam coins is short, with a high probability of going to zero.
Most scam coins have a life cycle of less than a year, with a zero rate exceeding 95%.
Solution: **Only use 5% of your position to gamble on scam coins, and take profits in batches when in profit.
The coins that experience sharp rises and falls do not necessarily represent real potential.
For example, Meme coins often drop by more than 80% after a short-term surge.
Truth: The volatility of quality projects usually does not exceed 1.5 times the market's amplitude.
3. Capture Long-term Opportunities
Mainstream coins like BTC/ETH provide high long-term returns but require enduring short-term volatility.
Strategy: Regularly invest and store in cold wallets to avoid frequent trading.
Promising projects often start with low trading volumes.
For example, C98 surged 27 times after consolidating for 11 months at the bottom.
Tip: Pay attention to on-chain data, especially GitHub updates and institutional holdings.
In the latter half of a bull market, dark horse projects often emerge.
Layer 1/Layer 2 projects like ATOM and NEAR, which lagged in the early stages, often see rebounds in the later stages of a bull market.
Strategy: Reserve 30% of funds to wait for opportunities.
4. Top Trading Mindset
Counterintuitive trading is the norm.
Use a grid trading strategy to cope with volatility, adding to positions every 10% drop and reducing positions every 20% rise.
Exit signal: **Take profits by 50% when breaking above the previous high and falling back 15%+ with declining trading volume.
Coins that break out after a period of consolidation have a high probability of explosive growth.
Coins that experience 3-6 months of narrow fluctuations have a breakout probability exceeding 70%.
Case study: SOL opened a 10-fold market after 4 months of consolidation.
Ultimate Survival Guide
Action guideline: Complete research and establish positions within 24 hours of discovering opportunities.
Information leverage: Focus on core data sources, such as CoinGlass long-short ratios, Glassnode on-chain indicators, etc.
Risk red line: Do not hold more than 20% in a single coin, and never use leverage for all-in bets.
In the crypto world, surviving longer is more important than making quick profits.
