(Pure content, no nonsense)
I entered the cryptocurrency world in 2018, experiencing the DeFi summer, NFT frenzy, and the bear market beating. I had a month where I made over 50 times my investment, but I also faced liquidation. Looking back now, for newcomers entering with 20,000 spare cash, the biggest fear is not losing money, but losing discipline. Today, I will share 8 practical strategies to help you pay your tuition upfront.
1. Resist the urge to act; opportunities are created by waiting.
The cryptocurrency market opens 24 hours, but there are only a few signals worth acting on each day. In the early days, I was always afraid of missing out, watching the market during the day and following news, which led me to be caught in false breakouts. Later, I discovered that the market is cleaner after 9 PM, with less activity from institutional investors, making technical trends more reliable. Now my rule is: no more than 3 trades a day, and if I’m not in the right state, I directly close the software.
2. Profit should be taken first; profit is yours.
Earning without taking profit is like having paper wealth. My habit is: for every 1000 yuan earned, transfer 300 yuan to a cold wallet (for example, if I earn 5000 U, I first transfer 1500 U to a hardware wallet). This is not being timid; it’s about using profits to fight for bigger opportunities while keeping the principal safe.
3. Indicators set the direction; reject feeling-based trading.
The most deceptive words in the crypto world are 'I think it will rise.' Now I only trust the MACD + RSI resonance on AICoin (for example, a MACD golden cross on the 1-hour chart while the RSI exits the oversold zone). When both indicators align, place the order; the win rate can double. Don’t blindly trust calls from gurus; data won’t lie one second before a pump of a shitcoin.
4. Set stop losses flexibly; don’t stubbornly hold through spikes.
Hard stop losses are necessary, but one must not be rigid. My method has two types:
When watching the market: for every 100 U in profit, move the stop loss up by 50 U (for example, if the buying price is 2000 U and it rises to 2100 U, raise the stop loss to 2050 U);
When going out: set a 30% hard stop loss to guard against unexpected black swan events.
5. Withdraw every Friday to lock in weekly profits.
Liquidity is low on weekends, making it easy to have sudden crashes or downturns. Every Friday at 4 PM, I forcefully withdraw 30% of weekly profits to my bank account. This money completely leaves the crypto world; save up to buy a house or a car—money earned in crypto is only yours when spent.
6. Choose the right K-line period to double your win rate.
For short-term trading: focus on the 1-hour chart to find quick entry and exit opportunities.
During sideways periods: switch to the 4-hour chart to accurately identify support/resistance levels.
Determine direction on the large time frame, find entry points on the smaller time frame, and avoid frequent face-slapping.
7. Only touch mainstream coins, stay away from low-quality projects.
Twenty thousand cannot withstand strife; my holding list always includes: BTC, ETH, BNB (maybe a little SOL). Small exchanges and unfamiliar coins are blacklisted—you're here to make money, not to gamble with fate.
8. Invest with spare money, never use leverage.
The harsh truth of the crypto world: contracts can double overnight but can also drop to zero in ten minutes. I've seen too many people rush into the market using online loans or credit cards, only to have their mental state collapse. Remember: losing twenty thousand won't affect your life, but a leveraged liquidation could ruin you.
In conclusion
The crypto world is not a casino; it’s a place for realizing knowledge. My biggest insight over the past six years is: during a bull market, everyone looks like a stock god; surviving the bear market is what makes a winner. If you can hold onto these twenty thousand for three months without losing everything, you've already outperformed 90% of newcomers.
Pay attention to the market, but even more to your own discipline—this is the key to navigating bull and bear markets.
