I just saw someone say 'trading cryptocurrencies relies on luck to get rich', and I laughed out loud —— as someone who has been in this circle for 8 years, going from losing all living expenses to saving 20 million, I want to say a heartfelt truth today: those who survive have never relied on luck, but on the discipline of 'against human nature'.
8 years ago when I first entered the market, I was no different from the new beginners now: seeing a certain cryptocurrency skyrocketing, I became envious, regardless of valuation or trend, and jumped in with a full investment; what was the result? Either I chased to stand guard at the peak, or I hurried to sell after making a few points, losing so much that I almost couldn't pay the rent. The tuition I paid during those years was more than my four years of college tuition, but it was precisely these losses that led me to summarize 3 iron rules of 'survival and profit'.
1. Choose coins wisely; focus only on 'hot potential stocks.'
Many people love to dig for 'dark horses that no one cares about,' thinking that only coins that no one pays attention to will soar— but I've proven through countless losses: coins that haven't risen are most likely truly worthless. In the crypto market, activity is life; a coin with no market fluctuations is either a project that has given up or lacks funding attention, and the chance of subsequent rises is lower than winning the lottery.
My logic for choosing coins is super simple: only look at the assets at the top of the gainers list. It's not about chasing the 'monster coins' that have already skyrocketed, but focusing on those that are 'steadily rising with volume support'— if they can consistently appear on the gainers list, it shows that funds are continuously flowing in, and the trend has formed, which is 10 times more reliable than blindly looking for 'cold coins.'
2. Don't focus on short-term K-lines; only make friends with 'long-term trends.'
The most common mistake beginners make is staring at the 1-hour and 4-hour K-lines all day; they feel ecstatic with every slight rise and panic with every slight drop, operating 800 times in a day, enough to cover a big meal's fees. I long abandoned short-term trading; now I only look at the monthly MACD: when a golden cross appears, I enter in batches, and when there are no signals, I comfortably stay in cash.
Short-term fluctuations are traps set by the main force; today's rise of 5% and tomorrow's drop of 8% are common occurrences; following short-term operations will only lead to repeated harvesting. But long-term trends won't deceive; a golden cross at the monthly level represents the true intentions of large funds; as long as the trend is intact, hold on with peace of mind— I once used this method to hold an asset and made a 150% profit, which is much easier than staring at the market every day.
There's a little trick for increasing positions: the 60-day moving average is my 'safe increasing position line.' When the asset pulls back near the 70-day moving average, and the trading volume increases, it indicates that funds are bottom-fishing, so decisively increase your position; if this signal doesn't occur, no matter how tempted you are, never reach out. Remember: a vague correctness is far better than a precise mistake.
3. Take profits and cut losses without being greedy; run when the line breaks and don't cling to the battle.
In the crypto circle, what is scarier than losses is 'greed' and 'luck.' Many people clearly make a 30% profit but still want to make 50%; as a result, the market reverses, and profits turn into losses; some people, after breaking key positions, always think 'it will rebound,' clinging to the hope of luck and stubbornly holding on, ultimately getting stuck.
My principles for taking profits and cutting losses can be described as 'iron-hearted.'
Taking profits is in two steps: reduce half of your position when it rises to 30%, then reduce another half when it rises to 50%, and let the remaining position follow the trend; even if it rises further afterward, there will be no regrets— the market is always full of opportunities, and preserving profits is the king's way.
There is only one rule for cutting losses: if it breaks the 70-day moving average, you must exit. This is my core iron rule after surviving three rounds of bull and bear markets; no matter how long I hold or how much I lose, as long as it breaks this line, I will immediately liquidate and exit, never fighting against the market.
There was once an asset I held for 3 months, making a 40% profit, but when it suddenly broke the 70-day line, I decisively liquidated. Later, that coin dropped by 60%, and many of my friends lost everything because they couldn't bear to cut losses. Remember: in this market, 'surviving' is always more important than 'making more.'
Lastly, let me say something from the heart.
In the 8 years of trading coins, I've seen too many people make quick money through luck, only to lose it all through skill; I've also seen too many people enter the market with the mindset of 'getting rich overnight,' only to leave in disappointment. The logic of making money in the crypto market is very simple: give up on fantasies, adhere to discipline, follow the trend, and don't fight human nature.
No one is born to make money; the methods I've summarized today are lessons learned from losing real money. If you are still confused and being cut by the market, it’s better to calm down, establish your own trading system, and stick to it; you'll find that making money isn't that hard.
I will continue to share more practical skills and market analysis; follow me to navigate the crypto circle with fewer detours and make stable profits~ What experiences do you have in trading coins? Feel free to chat in the comments; let's avoid pitfalls and get rich together!
