Here's a heart-wrenching truth: the ones who can truly make money in the crypto circle are no longer those 'wild players' who listen to news and chase trends; instead, there are more and more people who 'seem to understand the industry,' but they lose even worse than beginners. Why are there fewer and fewer people with awareness?
I am Old K, immersed in the crypto market for a full ten years. In 2013, I jumped in with 100,000 savings, and after half a year, I was left with only 20,000, staring at the K-line every day and losing sleep; now my account funds have exceeded 80 million, I own three properties, and I have changed my cars twice, relying not on luck, but on completely stepping on the 'gambler's mentality.'
In the past ten years, I've stumbled into so many pitfalls that I could write an encyclopedia on avoiding them in crypto: I've chased after soaring air coins, sold quality coins at the bottom, and experienced trading software crashing during sharp market drops, watching losses grow while being unable to act. But ultimately, I managed to stabilize my profits, and the core of it is two words: system.
Too many people treat trading crypto like 'gambling,' chasing when it rises and panicking when it falls. They make a little money and get carried away, but when they lose, they blame the manipulators—this kind of playstyle makes it surprising that they aren't harvested! Today, I'm not going to talk in circles; I'm pulling out my 'survival rules' and my bottom-line trading methods that I've summarized from ten years of practical experience. If you understand them, you’ll at least save yourself five years of detours!
1. Stay alive first! Here are 5 hard-earned survival rules (must-read for beginners).
I've seen too many people treat their principal as chips, making frantic moves and ending up losing everything. Remember, the prerequisite for making money in the crypto market is 'not to lose everything.' These 5 ironclad rules were bought with real money:
1. Never go all in! This isn't advice; it's a lifesaver. No matter how optimistic you are about a coin, thinking it will double tomorrow, you must leave at least half of your capital as dry powder. Recently, during a sharp market drop, many mainstream trading platforms froze up; people who went all in could only watch their losses grow, and I completely understand that feeling of helplessness. Keeping some dry powder allows you to buy the dip if it drops and add to your position if it rises. This is the prudent way to play.
2. Don't go all in when bottom-fishing; approach it like 'dollar-cost averaging.' Many people get excited when they see a major drop and throw all their money in, only to find it keeps dropping, getting trapped halfway down. Based on my experience, a sharp drop usually lasts 1-2 days; plan your levels in advance, for example, add 30% when it drops to a certain support level, then add another 20% if it drops another 10%. This way, you can lower your cost and won't be passive because you entered too early.
3. Look for signals at stage bottoms; don't guess blindly! For instance, in this recent sharp decline, Bitcoin appeared to stop falling after a rapid drop, but it was slow to rebound, indicating that the main force had no intention of stopping. It wasn't until it hit a key support level, released a lot of buy orders, and formed a long lower shadow that it was a true stop-loss signal—the main force had already placed buy orders at the lower shadow position, and ordinary people couldn't catch the bottom. But that's okay; when the rebound starts, it's fine to chase a little bit for a short-term rebound.
4. Don't panic sell during sharp declines; wait for a rebound before cutting losses. Many people get anxious when they see a drop, and in a flurry, they sell, only to see a rebound right after. When prices start rising again, they hesitate to chase, and their mindset collapses. The main force relies on this kind of candlestick pattern to harvest retail investors! If you really can't stand it, just close the trading software; after all, holding quality coins long-term is not a problem. If you must cut losses, wait for a rebound to a certain level, and at least don't sell at the bottom.
5. Take profits when they are good, don't let 'faith' brainwash you. I've seen too many people make 10 times their investment and still want to make 100 times, being indoctrinated with the belief that 'the crypto market always rises.' In the end, when the bull market is over, they give back all their profits and even lose their principal. Remember, we come to the crypto market to make money, not to be 'believers'! Faith, in essence, is a tool used by manipulators to trap people. The money you have in hand is real; no matter how high the market cap is on exchanges, if it hasn't been realized, it's all virtual.
2. Hidden gems: Use 'structural breakouts' to catch trends; I've caught multiple tenfold coins this way.
Many people think the crypto market is chaotic and entirely controlled by manipulators—this is true, but manipulator operations leave traces. If we can capture these traces, we can ride along. I've tried countless methods and ultimately found that 'structural breakout' (BOS) is the most practical; it doesn't require complex indicators, and even beginners can learn it.
Let me explain in 'human language': A structural breakout is when the price breaks through a high or low point in the trend, clearly showing the direction of market momentum. In simple terms, in an uptrend, if new highs are continuously made without first making new lows, this is a bull market structural breakout; in a downtrend, if new lows are continuously made without first making new highs, this is a bear market structural breakout. If the opposite occurs, it signals that the trend is about to reverse.
It's important to note that sequence is crucial! In an uptrend, new highs must be established first, not new lows; this is a valid structural breakout. Similarly, in a downtrend, new lows must be made before new highs for it to be a true breakout. If the sequence is reversed, there's a high probability that it's a trap set by the main force, so don't jump in.
Many beginners treat structural breakouts as a 'holy grail,' thinking that as long as a signal appears, they can make money—this is wrong! Structural breakouts need to be used in conjunction with other strategies to achieve high accuracy. Let me share a simple strategy that I often use, which beginners can adopt directly:
1. First identify the trend: If it's a downtrend, first find the continuously lowering lows and highs, and then add a 21-period Exponential Moving Average (EMA) to the chart.
2. Look for breakout signals: When the price breaks below the low point in a downtrend, this is a bear market structural breakout, indicating that the downward momentum is still strong.
3. Enter at the right moment: After a breakout signal appears, don't rush to enter; wait for bearish candlestick patterns like bearish engulfing or Pin Bars before selling;
4. Stop-loss and exit: If the price breaks above the EMA, it indicates that the trend may change, or the momentum is gone; at this point, decisively close your position.
Let me give you a practical example: In March last year, I noticed a certain mainstream coin had a bull market structural breakout, with the price breaking through previous highs, indicating strong upward momentum. After that, the price retraced to the breakout area, forming a demand zone, which was a great entry opportunity. After I entered the demand zone, the price quickly rose, and I made about 40%. Meanwhile, a fan of mine hurried to chase the high without waiting for the retracement and ended up losing 20%. This shows the difference that having a method makes.
