The true value in the cryptocurrency world never comes from thin air.
12500U, this is the profit I earned through 8 points during the bullish trend of ZEC. At that time, the price was consolidating at a key position, not dropping and not breaking through, and I realized this might be a sign of an impending breakout.
When BEAT surged to a new high, it shot up like a drunkard hitting a wall, and I decisively shorted, easily pocketing 56,000 U. After PIPPIN consolidated with reduced volume in a large range, it broke out with increased volume, and without hesitation, I followed suit, bringing in 23,000 U.
These are not guesses, but each executed trade. Today, I want to share not the 'wealth code,' but the core discipline that has allowed me to survive in a volatile market.
Hunter mentality: 90% of the time waiting, 10% of the time striking
The most expensive tuition in the cryptocurrency market is 'emotion-driven decisions'. The root cause of most losses is the belief that one must seize every opportunity, resulting in repeated harvesting in random fluctuations.
Real traders are like hunters: Waiting patiently for the right moment, and when they strike, they aim for the vital point.
The 'hunter's rule' I summarized is very simple:
Do not enter without clear signals: Never enter without clear signals (like a significant volume breakout at key levels, or effective breakouts of trend lines)
Do not shoot until you see the rabbit: Set stop-loss before each trade, decisively exit when the price hits the stop-loss level, do not hold illusions
If the prey is too big to carry: Take profits in batches, leaving some positions for profits to run
The cryptocurrency market features 24-hour continuous trading, no price limit, and extreme volatility. In such a market, survival comes first; preserving capital is always more important than pursuing returns.
My technical analysis toolbox: simple indicators, used in combination
I prefer to use the simplest tools but emphasize multi-indicator resonance to improve winning rates.
Moving averages are my 'trend safety belt':
When the short-term moving averages (like 5-day, 10-day) are above the long-term moving averages (like 20-day, 60-day), and all moving averages are diverging upwards, it is considered a bullish trend. The 20-day moving average is my important dividing line between bullish and bearish; if the price is above the moving average and the moving average is trending up, I hold confidently; if it breaks below the moving average and cannot quickly recover, I exit decisively.
The relationship between volume and price is the market's 'thermometer':
Price rises with volume increasing: The uptrend is healthy, can continue to hold
Price rises with volume shrinking: Uptrend is weakening, beware of pullbacks
Price declines with volume increasing: The downtrend is strong, should not bottom fish
Price declines with volume shrinking: Downward momentum is weakening, possibly approaching the bottom
MACD golden cross and dead cross combined with zero axis to judge strength:
A crossover of DIF above DEA is a buying signal, while crossing below is a selling signal. I pay special attention to golden crosses above the zero axis, which are usually stronger buying signals. When prices hit new highs but the MACD peaks decline (divergence), it is a strong sell warning.
Four iron rules for survival in the cryptocurrency market
Through years of practical experience, I have summarized four disciplines that must be followed:
1. Always follow the trend, never go against it
90% of losses in the cryptocurrency market come from 'counter-trend bottom fishing', while the key to profit lies in 'buying on the trend dips'. In a downtrend, all rebounds are traps; in an uptrend, all pullbacks are 'golden pits'. Never go against the trend.
2. Refuse the temptation of short-term surging coins
Whether mainstream coins or altcoins, less than 5% can generate more than two waves of major upward trends. If a cryptocurrency has a daily increase of over 30% or a three-day increase of over 50%, I will directly add it to my 'blacklist'; even if it continues to rise afterwards, I will never participate. Opportunities in the cryptocurrency market are always there; missing one doesn't lead to losses, but hitting one could lead to a total loss.
3. Position management is a survival guarantee
I always follow the '1% rule': The risk of a single trade should not exceed 1% of the total capital. This means that if the stop-loss point is 5% away from the entry point, I will invest at most 20% of my position. Never go all-in, keep 20%-30% cash, as there are new opportunities every day, and having liquid funds is a confidence booster.
4. Weekly reviews, do not let small mistakes turn into big disasters
Every Sunday evening, I do three things:
Logical review: Check if the buying logic still holds
Technical review: Check if the weekly line is still above the key moving averages
Strategy adjustment: Adjust next week's plan based on review results
Through reviews, I can timely identify problems and avoid small losses turning into big disasters.
How can small funds achieve rapid growth?
For small funds, my advice is: Focus + Compound interest.
In the past few months, I may have focused only on 1-2 cryptocurrencies, making small trades daily and not exceeding 3 trades a week. After accumulating a certain amount of capital, I will seize the cryptocurrencies that break through the monthly line. I will withdraw 50% of the profits to protect my capital, ensuring my qualification to 'stay at the table'.
Conclusion: The core of making profits in the cryptocurrency market is 'stability', not 'sudden wealth'
Trading cryptocurrencies is not gambling, but a practice that requires knowledge, discipline, and patience. No method can guarantee 100% profit, but establishing a scientific trading system, strictly executing risk control, and maintaining a rational mindset can greatly improve the probability of profit.
Mature traders all understand to replace emotional decisions with fixed strategies, overcoming greed and fear. The market is never short of opportunities; what is lacking is the ability to calmly seize them.
'The cryptocurrency market is not lacking in stories of sudden wealth, but those who last are all traders who prioritize 'stability'.'
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