A few days ago, LABUBU coin skyrocketed by 98% and then directly crashed, with some people losing everything after buying at a high price. My private messages are filled with friends asking, 'Can a newbie really make money in the crypto world?' As an analyst who has been struggling in this field for 5 years and has gone bankrupt 3 times before figuring things out, I can say from the bottom of my heart: newbies can make money, but it's definitely not by chasing trends, leveraging, or gambling. Those methods have made me roll from 780U to 21600U and are actually so foolish they make people laugh, but if executed properly, one can survive and make money!
1. First, break the misconception: The core of making money in the crypto world is not 'getting the market right'
Many beginners dive into the K-line chart as soon as they enter the market, thinking 'guessing the ups and downs will win,' but the result is often 'seeing right but doing wrong'—clearly guessing the rise but failing to take profits due to greed, ultimately losing money; what's worse is like my childhood friend, who went all-in with 10x leverage, and when the coin price dropped by 3%, he was liquidated, wasting three months of effort.
I've seen too many 'smart cookies' stumble: some people watch on-chain data every day, analyzing the movements of large holders, only to lose to their own emotions; some chase meme coins like LABUBU, thinking they can get rich overnight, not realizing that these coins have no value support, rising quickly but falling even faster, with maximum declines reaching 91%.
My core view: the crypto world is a 'survivor game'; survive first before talking about making money. The difference between professional players and amateurs is never about how accurately they predict but whether they can cut losses in time during market reversals and take profits when in the green.
2. Three 'simple methods': My iron rules from liquidation to 28 times growth.
Don't think that making money requires learning complex techniques; the method I use now is understandable in one glance for beginners. The key is 'mechanical execution'—after all, in the crypto world, execution ability is 100 times more important than IQ!
1. Capital 'Segregation for Survival': Never put all your eggs in one basket.
No matter how much money I have in my account now, I insist on the 'three-layer positioning method,' a lesson learned from three liquidations.
80% of capital keeps the base camp: this portion of money must not be moved. Even if I have five consecutive small stop losses, the total loss is still controlled within 10%, always leaving room for recovery.
15% of funds for short-term trading: no more than 2 trades a day, never operate frequently due to 'fear of missing out,' take small profits and run, accumulating small amounts over time.
5% of funds for emergencies: only add positions during severe market fluctuations and when clear support levels appear; usually, firmly stay out of the market and avoid reckless actions.
For coins like ARB and SUI, which have actual technical support and are popular in 2025, I also never go all-in. I first use 15% of my funds to test the waters, and once the trend stabilizes, I slowly add more, always leaving a way out for my capital.
2. Three-stage Positioning: Small losses filter out false signals, large orders catch true trends.
Many beginners either dare not add positions or go crazy adding positions after making a profit, ultimately giving back their gains. My 'Exploration - Confirmation - Breakout' position model can both avoid missing out and control risks.
Exploratory Position (20%): For example, if I’m optimistic about BDAG, which has been in a sideways trend for over 10 days, I first buy in with a small position, setting a hard stop loss at 3%, and immediately exit if the market doesn't align, losing a small amount to filter out false signals.
Confirmation Position (30%): Wait for the 4-hour K-line to break the previous high, and when both MACD and RSI indicators give bullish signals, add to the position to confirm that the trend is still correct.
Breakout Position (50%): Only when the daily line forms a bullish arrangement and the trading volume continues to increase, indicating that the trend is fully established, can one dare to enter the market heavily and ride the main upward wave.
Last year, I used this method to trade ALT coins, gradually increasing my position from an exploratory position to a breakout position, ultimately earning 62% before decisively exiting, not being greedy for the last cent, and instead avoiding subsequent corrections.
3. K-line 'Plain Language': No need to memorize terms; just watch 3 signals.
Many beginners are intimidated by terms like 'shooting star' and 'evening star'; in fact, the essence of K-lines is just the market's 'scorecard' for ups and downs. I've summarized 3 core signals in plain language that even beginners can quickly grasp.
Long upper shadow = hit back after a rise: for example, if the coin price rises to 10 yuan and then falls back to 8 yuan, it indicates heavy selling pressure above; it's time to reduce positions.
Long lower shadow = bottom fishing: it's like pressing a ping pong ball underwater and then it bounces back up, indicating there is support below, and you can test the waters with small positions.
Bullish engulfing = bullish counterattack: falling the previous day and rising the next, with the rise covering the fall, is a strong signal for upward movement; combined with increased trading volume, it's time to enter the market.
For short-term trading, look at the 1-hour K-line and find opportunities with two consecutive bullish candles; during sideways movement, switch to the 4-hour K-line to find support levels. This approach is simple and stable, much more reliable than random guessing.
3. Pitfall Guide: These 4 landmines, stepping on one could lead to zero.
I've seen too many people lose everything due to pitfalls. Today, I've listed the 4 deadliest traps that beginners must engrave in their minds.
Don't touch leverage over 5x: beginners should ideally give up leverage altogether. While 10x leverage seems profitable, a 3% drop leads to liquidation, and the margin for error is too low.
Stay away from meme coins that ride on trends: coins like LABUBU and Trump coins have no real technology or application support, relying solely on emotional speculation, rising quickly but falling even faster.
No more than 3 trades a day: the longer you stare at the market, the more easily your emotions can be swayed by fluctuations; impulsive actions will inevitably lead to losses.
Absolutely do not borrow money to trade coins: use spare cash for investment; even if you lose, it won't affect your life. Borrowing money to trade will only lead you to make wrong decisions under pressure.
