Eight years ago, like many others, I stood at the crossroads of investment: on one side was a stable fund, with annual returns like lukewarm water—tedious but secure; on the other side was the cryptocurrency world, a "rollercoaster" where the potential for a comeback was hidden amid wild fluctuations. I chose the latter—not out of blind faith, but because I calculated this: lukewarm water cannot quench thirst, and immense returns are always bundled with risks. Today, I can support my family by trading cryptocurrencies full-time, relying not on luck, but on the knowledge gained from eight years of hard lessons and disciplined positioning. Let's discuss my decision-making logic and survival rules.
1. Why the crypto world? Behind the excitement lies 'fear of missing out' and class anxiety.
I've seen too many people complain that the crypto world is a casino while secretly checking the market. Behind this contradiction are actually two conflicting emotions:
Fear of missing out (FOMO): When people around you double their investments in Dogecoin in half a year, and a roommate earns double on a capital of 7000 yuan, it’s hard to stay calm. One tweet from Musk can cause a shitcoin to surge 280,000 times; this 'wealth creation myth' spreads like a virus, making people afraid to miss the last train.
The urge to break through under real pressure: With soaring house prices and stock prices, it is nearly impossible for young people to buy a house on a salary. Regular investment in funds is like climbing stairs, while the crypto world is like riding a rocket—despite knowing the rocket might explode, some are willing to take the gamble. Mr. Cheng, a computer science major, put it well: 'It might take ten years to buy a house on a salary, but buying Bitcoin might only take two years.' This is the arithmetic of survival for young people today.
However, the cruelty of the crypto world lies in its extreme amplification of human weaknesses. Some people become 'addicted to trading' after staying up all night, while others lose their tuition fees due to leverage liquidation. But why do I still persist? Because here, recognition and patience are rewarded, not just courage.
2. Crypto survival rules: Technical analysis is inferior to position management.
Eight years of experience tell me that technical analysts who draw lines and stare at the market may win in the short term, but position management is fundamental to survival. Here are my iron rules:
1. Never go all-in; build positions in batches.
I divide my capital into 10 parts, and even if I'm very optimistic about a coin, I only invest 1 part each time. If it rises, I won't regret it; if it falls, I have bullets to average down. This specifically treats two ailments: greed (always wanting to go all-in) and fear (not daring to buy the dip during a crash). For example, during the '5.19 crypto disaster' in 2021, Bitcoin dropped 30% in a single day, and I averaged down in three batches, ultimately profiting when it rebounded.
2. Stop-loss is harder than take-profit; discipline is greater than intuition.
Set a red line: if losses exceed 10%, cut your losses. Don't believe in the nonsense of 'holding long-term'; in the crypto world, one day is like a year in reality, and letting losses go unchecked may lead to a total loss. Similarly, when profits exceed 20%, at least sell half; taking profits is real profit.
3. Leverage is poison, not honey.
I've seen too many people open 100x contracts hoping to get rich overnight, only to face liquidation like drinking water. I use a maximum of 3x leverage, and only when the big trend is clear. Remember: leverage earns through the process, liquidation is the result.
4. Cash is oxygen; always leave a way out.
No matter how optimistic I am about the market, I always keep at least 30% cash. This is not only ammunition for buying the dip, but also a lifesaver during a crash—when Bitcoin plummeted to $67,000 in November 2024, those fully invested faced liquidation, while I used cash to buy at low prices.
3. The heartfelt words of veteran investors: Don't step into these pits again.
Block out the noise, stay away from 'mass construction': 99% of 'inside information' in crypto groups is just a way to cut leeks. There was once a project team boasting about technical innovation, but after reading the white paper, I found out the team hadn't even opened source the code. Independent research is your only moat.
Don't treat faith as an investment strategy: When Dogecoin surged 1923 times, some 'believers' ended up getting stuck. There are no eternal assets in the crypto world, only cyclical fluctuations. Be grateful to the market when making money, and don’t curse the streets when losing money.
Regular withdrawals to combat illusory wealth: For every 50% I earn, I must withdraw 20% to my bank card. The numbers in your account are illusory; only the money you can spend is yours.
4. Cryptocurrency vs. Fund: Essentially a choice of life mode
The crypto world is like wilderness survival: rewards sensitivity, discipline, and learning ability. With 24-hour trading and frequent black swan events, it's suitable for those willing to trade risk for class breakthroughs.
Funds are like group tours: worry-free but with a low ceiling. No matter how skilled the fund manager is, an annualized return of 20% is already top-notch. It's suitable for those seeking stability and not wanting to hustle.
But no matter which path, never use a bus ticket to satisfy the thrill of a roller coaster. If you lose and can’t sleep, or if you make money and want to gamble big, you might not survive three years in the crypto world; if you can endure the crash and hold your position, this might be the fastest way for ordinary people to rise against the odds.
Eight years ago, when I studied the Bitcoin white paper, I cried while looking up words; now, it feels worthwhile. The crypto world has taught me not just how to make money, but also to recognize myself: brake when greedy, shoot when fearful, and cultivate a calm mind amidst volatility. Mild funds suit most people, but if you have a fire within, consider igniting it with a cautious strategy—after all, only those crazy enough to think they can change the world truly change the world.
Follow Xiang Ge to learn more first-hand information and precise points of crypto knowledge; he will be your guide in the crypto world, and learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
