I have been in the game since 2013, experiencing the madness of Bitcoin rising from a few hundred dollars to 40,000 dollars, and I have also witnessed people around me becoming rich overnight or losing everything. Back then, with the 1,000,000 yuan principal given by my family, I lost it down to only 200,000 yuan in three years. After being awakened by reality, I finally understood one thing: the crypto world can change your destiny, but the prerequisite is that you can survive until that day.
Now I support my family through trading, rolling my account from 300,000 to 8,000,000, not by gambling, but by a set of simple methods. Today, I want to share some truths suitable for those who want to make long-term profits in the crypto world.
1. The million yuan tuition I have paid: Four pitfalls that beginners must avoid
Blindly believing in 'gods' leads to the quickest demise.
The crypto space is not short of 'experts'. In the early years, I followed a KOL named 'Old Coin' to short, learned a lot about MACD and Bollinger Bands, and ended up losing from 5 bitcoins to only 0.5.
It was only later that I understood that truly profitable strategies are not shared for free; most calls are made to let you take the bag.
Position management out of control, one misstep leads to liquidation.
In 2019, I once chased the market with 20x leverage fully loaded, only to receive a liquidation message in the early morning, and my account went to zero.
The cryptocurrency market is highly volatile; even with 75x leverage, a drop of 1.33% can lead to liquidation.
Staying alive is more important than making quick money.
Treat luck as strength, profit giving back
In a bull market, everyone is a stock god, but the cost of fanaticism is deadly. In the '3.12' crash of 2020, many were liquidated at $0 in MakerDAO's collateral positions, simply because of network congestion that delayed their margin calls.
Unrealized profits are just numbers.
Chasing trends stubbornly without understanding stop-loss.
ICO, DeFi, NFT... every round of hype makes some rich, but more get stuck at the peak. For example, after the 94 policies, Gongxinbao crashed from its high, and those who stubbornly held are still stuck today.
2. The core of turning things around: three iron rules to control risk.
Position size is vital; never go all in.
Single position ≤ 35%, set stop-loss at 15%, must cut losses if retracement breaks the line.
In a bull market, cash out the principal and let profits roll over. For every million I earn, I transfer 700,000 to USDT to lock in, leaving 300,000 for continued operations.
Only follow trends, do not guess tops and bottoms.
In a bull market, only go long; in a bear market, only go short. For example, when Bitcoin rises above $40,000, chasing the uptrend is safer than buying the dip.
Use MACD golden cross + 20-day line to judge trends; sell immediately if it breaks.
Leverage is a double-edged sword; misuse can hurt yourself.
With 10x leverage, a 10% drop leads to liquidation; with 125x leverage, a drop of 0.8% leads to zero.
Newbies are advised to start with 3-5x leverage and gradually increase their position after making profits.
In extreme market conditions, high-leverage accounts may get pierced by 'erroneous orders'. There was a user who placed a buy order for $0.0001 on Binance, and a year later it unexpectedly executed, earning him 2 million.
— But this kind of luck cannot be replicated.
3. A steady profit strategy for ordinary people: slow is fast.
Invest in leading coins systematically, do not be greedy for small coins.
BTC and ETH are the only assets that have experienced multiple cycles of bull and bear markets. Gate.io data shows that the annualized return of a systematic investment in mainstream coins can exceed 20%.
Use 'holding coins to earn interest' to make passive income.
For example, Staking (like Cosmos annualized 10.84%) or exchange savings accounts (like Binance's USDT annualized 10%).
Although I can't outperform contracts, I excel in stability.
Hoard coins + grid trading to profit from volatility.
Buy low and sell high in the box range, for example, when Bitcoin oscillates between $30,000 and $40,000, a grid strategy can outperform a one-sided position.
4. Blood and tears lesson: surviving in the crypto space is more important than getting rich.
Avoid ALL IN: some sell their homes to trade crypto (like Binance's Zhao Changpeng), but more end up bankrupt.
Avoid trading crypto with debt: 33% of people in South Korea use credit cards to buy Bitcoin, ending up with huge debts after a crash.
Keep cash on hand: profit in a bull market, only then can you buy the dip in a bear market. I withdraw 30% annually to ensure family expenses are worry-free.
The last piece of heartfelt advice.
The most ironic thing about the crypto space is: most people overestimate what can be earned in a year but underestimate what can be accumulated in ten years. My 8 million was not earned through a one-time hundredfold coin, but rather by avoiding countless liquidations. When you stop pursuing an 'overnight reversal', wealth will quietly catch up with you.
Follow Xiang Ge to learn more firsthand information and precise points about the crypto space, becoming your navigation in crypto; learning is your greatest wealth!
