I have seen too many people rush into the cryptocurrency market with the fantasy of 'doubling overnight,' only to end up losing everything in chasing highs and holding positions; I also personally guided a fan who started with a small fund of 2400U and rolled it to 38,000U in 3 years without insider information or complex operations, relying solely on 3 'foolishly simple' principles.
As a veteran with 10 years of experience in the cryptocurrency market, I started with 5000U, and now my account is steadily in the seven-figure range. After witnessing bull and bear cycles and stepping into countless pitfalls, I understand that making money in the crypto world is never about luck, but about 'anti-human discipline.' Those who stare at the market daily and trade frequently are essentially giving money to the market; the ones who can truly profit in the long run are the 'fools' who can remain calm and adhere to the rules.
Mid-level dry goods: 3 core principles, even a fool can understand, execution brings profit
1. Light position for trial and error, never go all in: use 10% of the position to bet on the trend, not on luck.
Many people lose because they go all in before the market is clear—thinking 'the price is low enough' and 'the trend is coming', resulting in getting stuck. My approach is: always use only 10% of the position to explore.
For example, if I am optimistic about a certain mainstream asset, I will first take out 10% of the total funds to build a position; no matter how optimistic I am later, I will not increase my position all at once. Only when the price breaks through key resistance levels and the trend becomes completely clear (for example, stabilizing above the moving average for 3 consecutive days), will I incrementally add to my position, with each addition not exceeding 5% of the total funds.
The benefit of doing this is: even if the judgment is wrong, the loss is controlled within 10%, which can be completely endured; once the trend is correct, you can earn enough profit—last year, a certain mainstream asset rose from 12,000 to 28,000, and I used this method, gradually increasing from 10% position to 30%, earning a 120% return.
2. Cut losses on losing trades, increase positions on profitable trades: Don't fight against losses; let profits roll.
This is my most core principle, and it is also the lesson I learned after suffering a loss from 10,000 U to over 2,000.
Many people add to losing positions, thinking 'averaging down will bring them back', but they end up getting trapped deeper and deeper; whereas I never add to losing trades—once the asset price falls below the preset stop-loss line (usually set at 8%-10%), I directly cut losses and exit, never holding any illusions.
But for profitable trades, I will be 'greedy' to the end: as long as the trend is not broken (for example, not falling below the 5-day moving average), I will continue to hold, and even slightly increase my position at key points to maximize profit. Remember: losses must be cut in time, and profits must be learned to be amplified; this is the core logic of cryptocurrency trading.
3. Only follow the market, do not fight against the market: abandon 'I think', believe in 'the market says'.
The most terrifying thing in the crypto market is not the decline, but the 'cognitive bias'—clearly the price has broken the support level, yet stubbornly believing 'it should rise', holding on and refusing to sell; clearly the trend is down, yet still thinking 'buy the dip', and as a result, losses keep increasing.
My approach is: completely abandon 'I think', only look at 'what the market does'. If the market rises, follow the trend to go long; if the market falls, decisively short or wait; if the trend is unclear, patiently wait, never force entry.
Now I watch the market for no more than 1 hour a day, only focusing on key support levels, resistance levels, and moving average trends; once the trend is established, I hold on, completely ignoring short-term fluctuations—those who get entangled in intraday ups and downs often lose their direction in the volatility and end up chasing highs and selling lows.
Conclusion: The cryptocurrency market is not a casino, but a place of practice; only by following the rules can one survive
Lastly, let me say a heartfelt word: the cryptocurrency market is not a casino, but a place that tests discipline and mindset. Having a small capital is not scary; even 2400 U can turn around; what is scary is greed and luck—do not chase those 'hundredfold coins' or 'air projects', do not touch high leverage, only use spare money to invest; even if you earn only 5%-10% a month, long-term compounding can yield amazing returns.
