After eight years in the industry, I've seen too many magical stories: the 'master' who posts profit screenshots at three in the morning goes bankrupt and deletes their account the next day, and the retail investor who rushes into the market with their house money ends up with nothing left of their principal. But don't panic, the true winners in the crypto world are never those relying on 'insider information' or luck, but those who execute simple logic to the fullest. The method I'll discuss today has been repeatedly verified by me and an experienced trader who turned 10,000 into 5 million; the core message is simple: losing less is earning, and surviving is essential for output.
01 Controlling your hands is more important than accurately predicting the market.
The root of all liquidation comes from 'not managing money well' over 80% of the time. For example, some people jump in with all their capital on a new coin, feel elated when it rises 5%, panic when it falls 3%, and then, when they cut losses, can't even cover the fees. The real profitable strategy is to treat your principal as 'soldiers' and use them in batches:
Divide total capital into 5 parts, only use 1 part to enter each time;
Immediately stop loss if a single trade loses 10%; stop and reflect if total capital drawdown exceeds 2%;
Even if you get it wrong 5 times in a row, the total loss is only 10%, while a single trend can recover your losses.
The cryptocurrency market is not a casino; surviving is more important than making quick money. As the old saying goes, as long as you have the green mountains, you don't have to worry about firewood—compound interest relies on the premise that 'you still have principal.'
02 The trend is your friend; don't always go against it.
Many people lose money because of 'counter-trend operations': when it falls, they always think 'the bottom is here,' and end up buying halfway down; when it rises, they rush to 'cash out,' missing the main upward wave. I often tell my students: the trend is like the subway; there's no point in rushing when it hasn't arrived, and when it does, don't get off randomly.
How to follow specifically? Remember two signals:
A golden cross below the MACD zero line: take a small position to test the waters, don’t go all in;
A sharp increase in volume at a low level: This is a signal of the market's 'heartbeat accelerating,' more reliable than any recommendation from big players.
Patience is not about waiting blindly; it's about watching the signals—hold back during a downturn, and secure yourself during an upturn.
03 Beware of the 'get rich quick trap'; coins that spike in the short term are mostly scams.
Those altcoins that double in a day are either driven by capital or a scam is about to strike. I had a student who was jealous of someone sharing profits from a certain meme coin, jumped in, and got stuck the same day, cursing when he cut losses, saying 'I'll never believe in get-rich-quick myths again.' The money in the market comes at a cost; if you can resist chasing highs, you've already outperformed 80% of retail investors.
Especially remember: don't touch small coins and ultra-high leverage. Small coins have poor liquidity and high risk of going to zero; leverage over 10 times can wipe you out with just one spike. Newcomers should play safely with spot trading; Bitcoin and Ethereum may rise slowly, but they also fall less.
04 Adding to a position is not a 'lifeline,' but an 'accelerator.'
Many people add to their positions when they incur losses, resulting in even greater losses and eventually giving up entirely. The logic of adding to a position is 'trend confirmation,' not 'averaging down costs':
Absolutely do not add to a losing position (indicating that the trend may be wrong);
When making profits, add gradually (after confirming the trend).
For example, if you buy a coin and it rises 10%, and the trading volume continues to increase, then you can add to your position; but if it drops immediately after purchase and falls below the stop-loss line, you must recognize the mistake and exit.
05 Reviewing trades for 10 minutes each day is more effective than blind trading all day long.
The veteran who turned 10,000 into 5 million has an unshakeable habit: writing a trading journal every day and asking himself three questions:
What is the core logic behind buying it? (For example, technical breakout + positive fundamentals)
Is the validation correct now? If incorrect, was it a judgment error or execution issue?
How to avoid similar mistakes next time?
Experts don't make money by predicting the market, but by reviewing and turning experience into muscle memory.
The essence of making money in the cryptocurrency market is to use rules against human nature. Those who can navigate bull and bear markets have accomplished three things: managing positions, following trends, and persisting in review. Next time you think of chasing highs and cutting losses, ask yourself: If I lose this money, can I still eat and sleep well?
Trading cryptocurrencies is not about who makes money faster, but who survives longer. Maintain your rhythm; time will reward you. Follow Xiang Ge to keep updated on the most accurate news and cryptocurrency knowledge, becoming your navigation in the crypto world. Learning is your greatest wealth!#ETH走势分析 #加密市场观察 $ETH
