Last week at two in the morning, my phone suddenly exploded with notifications, and my cousin's tearful voice came through the receiver: 'Brother, my small noodle shop that has been running for two years can't hold on any longer. The few thousand dollars I have left, I want to invest in the crypto market. This is my last chance!'
Her words pierced through my scar from seven years ago like a hot needle—I had plunged into the market with all my savings from my first job, only to have it all reduced to a few scraps in less than three months. I spent an entire afternoon bargaining with my landlord over rent, nearly ending up sleeping under a bridge.
Eight years have passed, and I have transformed from a 'newbie' into a stable and profitable analyst. Just in the market crash from 2022 to 2023, I helped three friends in a similar situation as my cousin avoid major pitfalls and even doubled their assets.
People ask me every day in the background, 'Is there a shortcut to getting rich overnight?' Honestly, is there any shortcut in the crypto market? Understanding these four things first is 100 times more reliable than rushing to throw money in.
1. First, find your 'anchor'
Many newcomers are dazzled by various small cryptocurrencies as soon as they enter the market, always thinking that 'small coins rise quickly.' But I want to tell you that core assets are the market's 'anchor'—if they stabilize, the entire market has the momentum to rise; if they fall drastically, other coins are very likely to suffer the same fate.
Don’t easily believe those 'our coin has an independent market' nonsense; low-probability bets are not something newcomers should touch. I fell for the 'hundred times coin' scam back in the day, and now every time I help friends allocate funds, I always advise them to put over 60% of their funds into core assets, and only then try small positions with the rest. This is the way to steadily build wealth.
2. Keep a close eye on the 'emotional thermometer' of stablecoins
Stablecoins act like the 'emotional thermometer' of the crypto market, with their fluctuations hiding the real movements of funds. Once stablecoins show significant premiums, it indicates that people in the market are busy avoiding risks; entering the market at this time is like going out in the rain without an umbrella—you're very likely to get soaked.
Conversely, if core assets suddenly surge, such as rising more than 20% in a single day, don’t just focus on being happy; timely switching to stablecoins to lock in profits is what a smart person would do. In 2023, two friends successfully cashed out using this tactic after several rapid surges, securing their profits; if they had stayed too long, they would have given back their gains.
3. Capture the three 'golden operational windows'
The crypto market operates 24 hours non-stop, but the volatility patterns at different times vary greatly. Identifying these three time slots for operations can save you a lot of detours:
12 AM to 1 AM midnight scare slot: During this time, trading volume is low, making extreme volatility likely. If you have a good feeling about a certain coin, you can place a low-price order in advance; you might catch an unexpected surprise.
6-8 AM early trading strategy: If it fell the previous night, you can add some positions in the early session; but if it rose sharply the previous night, you have to guard against a pullback and not chase the highs impulsively.
After 5 PM US market surge point: After foreign capital enters the market, volatility will significantly increase. When monitoring the market, be careful not to make reckless operations; many people get 'washed out' during this period.
4. Absolutely blacklist 'three no assets'
There are thousands of cryptocurrencies in the market, but they can be summarized into two categories: those you can touch and those you should never touch. Those 'three no assets'—no actual application scenario, low trading volume, and vague team information—must be blacklisted and deleted.
Real mainstream assets, even if they drop 40%, as long as the big trend is still there, holding patiently gives you a chance for a rebound. In 2022, my core assets dropped nearly 50%, and while some around me panicked and sold off, I gritted my teeth and held on. By 2023, not only did I break even, but I also made a profit. Remember, a drop in the crypto market is not scary; what’s scary is buying the wrong assets.
In fact, the crypto market is not a casino; it is a gym—only by practicing the right posture can you get stronger, while random practice will only lead to injury. My cousin listened to my advice and used the money to renovate her noodle shop, and her business has gradually improved recently.
If you are also navigating the investment road, don't rush; just follow me. I will share the pitfalls I've experienced over the past eight years and the practical experiences I've summarized in detail. Next time, let's discuss the practical tips that can help you 'avoid pitfalls and get rich', after all, making money is a gradual process that can actually be faster.
