Cryptocurrency Trading Insights, starting capital of 100,000 has now realized a profit of 20,000,000. Below are my trading insights; learning them is equivalent to earning money.
1. Beware of Bull Market Traps
Popular Coins = High Risk
Coins that are wildly pursued during a bull market are often heavily controlled and have huge bubbles.
Reason: The operators attract retail investors to take over; once the funds withdraw, the drop far exceeds the overall market.
Countermeasure: It’s better to miss out than to chase popular coins that have surged over 50%.
New Coins Launch = Scams
New coins heavily promoted by exchanges often go through the “launch - surge - crash” trilogy.
Iron Rule: Observe new coins for at least 3 months before making decisions to avoid emotional trading.
2. See Through Shady Practices
The harvesting model of scam coins
The standard process is: violent wash trading → stepwise price increases → skinning the profits.
Data: Over 80% of scam coins have a lifespan of less than one year, with a zero-rate exceeding 95%.
Solution: Use only 5% of your position to bet on scams, and take profits in batches after making a profit.
The most volatile doesn’t mean the most potential
Coins that experience dramatic rises and falls are mostly speculative, such as Meme coins, which generally retract over 80% after a short-term spike.
Truth: The volatility of quality projects is usually less than 1.5 times the overall market amplitude.
3. Capture Long-term Opportunities
Time Dilutes Volatility
Mainstream coins like BTC/ETH have an annualized return exceeding 200% over 10 years, but short-term retracements can exceed 40%.
Strategy: Dollar-cost averaging + cold wallet storage to avoid frequent trading.
Potential Coins Hidden in Obscure Areas
Truly potential projects often have low trading volumes before launch, for example, C98 surged 27 times after consolidating at the bottom for 11 months.
Dark Horses in the Second Half of the Bull Market
Mainstream Layer 1/Layer 2 projects that have lagged (like ATOM, NEAR) often experience a 3-5 times surge at the end of a bull market.
Key: Reserve 30% of funds for right-side opportunities.
4. Top Trading Mindset
Counterintuitive Training
“Buy the dips, sell the highs” is the norm, and it can be automated through grid trading: increase position by 10% every time it falls, and reduce position by 20% every time it rises.
Identify Selling Signals
If the coin price breaks through previous highs and then drops rapidly by more than 15%, with trading volume continuously shrinking, immediately take a 50% profit.
Consolidation = Energy Storage
Coins that experience a narrow fluctuation for 3-6 months (amplitude less than 30%) have a probability of over 70% to break through resistance and explode.
Case: SOL consolidated for 4 months in 2021 before starting a 10-fold market.
Risk Red Line: No single coin position should exceed 20%, and never leverage all in.
Fellow traders, remember that in the crypto world, surviving longer is more important than making quick profits.
