Discipline and patience are the true keys to wealth.
In the winter of 2016, I entered the cryptocurrency world with the mindset of 'getting rich overnight.' At that time, Bitcoin was only 4000 yuan. I had 50,000 yuan in capital, aiming to achieve financial freedom quickly. What happened? Chasing highs and lows, going all in, and within three months, my account assets were halved.
During the Spring Festival of 2018, I was on a speeding high-speed train, staring at the liquidation screen. At that moment, I suddenly realized: to survive with small funds in the cryptocurrency world, it’s not about speed, but about waiting.
Quick money traps: 90% of people cannot overcome this hurdle.
At the beginning, like most newcomers, I was obsessed with high leverage and short-term trading. Seeing others double their money instantly with 100x leverage made me itch. What happened? In 2017, with the '9.4' policy announced, the market crashed. A friend I knew, who went long with high leverage, not only lost all his profits but also wiped out his capital.
Human greed for quick money is fatal. When you taste the sweetness of quick money, your brain secretes dopamine, making you chase the next 'big win' like a gambler. But this is precisely where the trap lies: high leverage is like a double-edged sword, amplifying profits while also amplifying risks. I later calculated that with leverage exceeding 5 times, the probability of liquidation grows exponentially.
In the crypto space, 70% of people choose to exit the market after experiencing significant losses, while only 30% reflect and adjust. Among that 30%, only half can transform into long-term stable traders. I am very fortunate to have become one of that half.
My five core rules of 'slow is fast'
1. Catching two major uptrends a year is enough
I now set a strict rule for myself: trade only 2-3 times a year, keeping cash for the rest of the time. For example, in April 2019, I took advantage of the Bitcoin market at $3000-6000, after bottoming in March 2020, I took profits in early 2021, and positioned for the bear market at the end of 2022, realizing it in early 2024. In fact, the crypto space is not short of opportunities, but lacks patience.
Trading is a game for losers. The average win rate of top Wall Street traders is only about 40%, while retail investors have a win rate of up to 90% but are still considered fodder. Why? Because investment is not about being right or wrong, but about making big money when right and losing small money when wrong.
2. Full positions are gambling, not trading
A common mistake for beginners is to operate with full positions without understanding candlesticks; making one mistake in real trading leads to exiting. I now insist on: leaving enough cash for mid-term waves, buying slowly when prices drop, and selling in batches when prices rise; for short-term trading, only focus on the top ten by volume, using 15-minute candlesticks and KDJ to find rhythm, and firmly avoiding obscure coins and scams.
Position management is the lifeline of survival. I now keep any single altcoin position to no more than 5% of my total position; even if it goes to zero, it won't significantly impact me. This is also why I have survived through multiple black swan events.
3. Positive news turning into negative news is key; timing is crucial
Many people blindly follow insider news to chase highs, only to be met with a sell-off by the big players. My rhythm is: do not trade when the market drags, buy in batches after a sharp drop, reduce positions after a 15% rebound, and do not be greedy for the last part of the profit.
Technical analysis often leads fundamental news. By analyzing candlesticks, one can gain insights into market trends. However, many people do not spend time studying these, only chasing so-called insider information.
4. Never go heavy during holidays
During the National Day holiday in 2017, I did not reduce my position, and as a result, Bitcoin plummeted overnight, evaporating three months of my profits. Since then, I have set a strict rule: before holidays, my position must be reduced to below 30%, never taking chances.
The market is always right. There is no need to blindly worship any analyst or influencer; only the market is the best teacher. Even when crossing the street with a green light, one should look around to reduce risks.
5. Making money relies on execution, not luck
Eight years of experience tell me: trading habits determine profitability; do not expect to get rich overnight; prioritize stability before seeking profits.
The ones who survive in the crypto space are not the smartest, but the most rational and disciplined. Success is not coincidental; opportunities are reserved for those who are prepared.
'Slow is fast' mathematical proof
Perhaps someone will ask: Can slow really be fast? Let's let the data speak.
Assuming you have 100,000 in capital, you have two choices: the quick money model pursues a 30% return each month, but has a 50% drawdown once every three months; the slow money model only seeks a stable 5% return each month, with almost no drawdown. As a result, after one year, the quick money model's funds are about 850,000, while the slow money model reaches about 1,790,000! Stable small gains accumulate over time, ultimately overcoming the high returns from volatility.
This is the magic of compound interest. Einstein called compound interest the eighth wonder of the world, which also applies in the crypto space. Buffett also said that no one wants to get rich slowly. But the truly successful are often those who have patience.
How to practice the 'slow is fast' philosophy in the crypto space
Build your own investment checklist
Before each investment, I write down a series of questions: What real demand does this project solve? What is its moat? Is the token economic model reasonable? Is the current valuation too high? Filter out impulsiveness using a rational framework.
Adopt a dollar-cost averaging strategy
Dollar-cost averaging in a bear market is a very simple yet effective strategy. Regardless of market direction, dollar-cost averaging yields good results. If the market is bullish, the returns from dollar-cost averaging can be substantial; if the market is volatile, it can lower costs and increase efficiency; if the market remains bearish, it can reduce the average cost.
Focus on cycles rather than short-term fluctuations
The crypto space has a clear four-year cycle (highly aligned with Bitcoin's halving cycle). Different stages of the cycle require different strategies: boldly build positions in the deep cold of a bear market, take profits in batches during the frenzy of a bull market, and cash is king during the transition from bull to bear.
Conclusion: True freedom is the reward for patience and discipline
The crypto space is not a casino, nor a paradise for overnight wealth; it is a high-risk, high-reward investment market. The ones who can survive long-term in the crypto space are not the smartest or luckiest, but the most rational and self-disciplined.
In eight years, I went from 50,000 to 5 million, relying not on precise bottom hunting or peak escaping, but on the philosophy that 'slow is fast.' True crypto wealth is not created overnight; it accumulates gradually over market cycles.
In a bull market, do not be greedy; in a bear market, do not panic. Maintaining rationality is essential to making money. I hope my experience can help you avoid detours in the crypto space, guarding your wealth with patience and discipline. Follow Xiang Ge to learn more first-hand information and precise points in the crypto space, becoming your navigation in the crypto market; learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
