I’m telling you a story about an old man in the cryptocurrency world, hoping that we can avoid setbacks and take fewer detours.
The story begins:
Hello everyone, I am a science and engineering guy. I entered the mining circle in 2015. By selling mining machines and hoarding coins, my assets exceeded 1000W in the bull market of 2017. I started playing contracts in 2018, and gradually deposited all my spot and savings in the market as tuition fees. I experienced the hard journey of falling from heaven to hell. When I was studying, I was a fan of Jin Yong's martial arts novels and loved the Xiaoyao School. I wanted to make a comeback in the cryptocurrency circle by using the name of Xiaoyaozi.
I don’t know when you entered the circle, I clearly remember that I entered the mining circle and the currency circle in May 2015. I had just resigned from the company at that time, because I used to be engaged in mobile phone sales and cross-border e-commerce. An old friend who I had known for many years (I met him in a technical training in 2010) asked me to give him two 128G Apple 6PLUS. A friend of his in Vietnam wanted them.
We met at Shenzhen Happy Coast. He saw that I was doing cross-border e-commerce, so he asked me if I was interested in selling mining machines. I said of course I was, as long as the product could make money, I would do it. That’s how I got involved in the mining circle.
At that time, he also taught me to open an account in Bitcoin China. I invested 100,000 yuan and stockpiled some coins. I still remember that the buying price of BTC was 245 US dollars, the buying price of XRP was 0.008055 US dollars, the buying price of LTC was 1.43 US dollars, the buying price of DASH was 2.7 US dollars, and the buying price of DOGE was 0.000089. This was also the beginning of my making a lot of money later.
When BTC hit the bottom in 2015, the price I bought was the floor price or even the basement price in today’s terms. My old friend doesn’t play with contracts, and he also told me not to play with contracts.
Then in 2018, the market unexpectedly entered a bear market, BTC began to turn around and fall, and the funds invested in mining at the end of 2017 and the beginning of 2018 suffered huge losses, about 500W. Seeing that the loss was about to be all, we made a decision to sell all the mining machines at the end of 2018 at prices ranging from 300 to 600.
At that time, the price of a new machine was 18,000 yuan for Bitmain S9 14t and 10,000 yuan for Shenma M3. We made our own mining machines and got wholesale prices. We don’t know how other miners survived. I lost so much money that I just wanted to get my money back as soon as possible. Spot trading was not profitable and mining was not profitable either. I set my sights on contracts. In the same year, I started to get in touch with contracts and signed up for many training courses. My life has entered a different mode since then.
In 2018, the market entered a bear market, and there was no business in mining machines, so I calmed down and concentrated on studying trading. I started learning from scratch. At the beginning of the school, I started to learn from the K-line of Hou xx (I will not use the full name to avoid advertising suspicion). The tuition fee was 16,800 yuan, 5 days and 4 nights. Now looking back, it was really a waste of money.
Later, I signed up for courses by Li XX and Chen XX, which basically traded based on indicators. At that time, I had just entered the contract market, so my positions were not large and my losses were not large.
In 2019, when the BTC price was 3300, I told my friend that we could buy the dip. My friend said we should wait until it fell below 3000 before buying the dip. Later, Bitcoin continued to rise, and we missed a good opportunity to buy the dip. My contract position was not large at the time, and the loss and profit were still within the acceptable range.
On December 18, 2019, Bitcoin fell back to around 6,500. I remember that day very clearly. I accompanied a colleague who worked on software in the office to pick up a BMW 530. I placed an order at this position to buy 100 BTC and it was executed. Then it kept rising. I kept adding positions and closed the long order at around 9,300. I made about 300W from this wave, which was also the most I have ever made in trading.
In January 2020, the epidemic started. I took my children back to my hometown. My children took online classes while I traded in cryptocurrencies. Since the last successful transaction, I felt a little bit floating, and I felt that I was in control of the market. My positions became larger and larger. Bitcoin paused at around 10,000, and then began to fall. I started to build a position at around 9,000, and it was a heavy position, because BTC was about to halve. Then Bitcoin continued to fall, and I kept adding positions.
2022.3.12 My nightmare begins! At around 7pm on March 12, Bitcoin started to fall from around 7,500. I had already held 90% of my position at the time. The price quickly dropped to over 6,000, then fell below 6,000 to around 5,200, and then rebounded to around 6,200.
At 2 a.m., I added to my position again. My liquidation price was around 4,000. I thought at the time that the price of Bitcoin would not fall below 4,000 no matter what. I took a short nap at 5 a.m. and then continued to watch the market.
On March 13, 2023, my Binance futures account was liquidated, and more than 900,000 USDT was gone. In the morning, Bitcoin fell rapidly from 6,000 to below 5,000. I was thinking about whether to sell all the spot on Huobi and OKEX and use it to increase the margin.
I hesitated, but reason stopped me from doing so. If all my positions were liquidated, how would I pay for my children’s tuition, my mortgage, and my living expenses? I didn’t dare to transfer my position, and then Bitcoin quickly fell below 4,000, falling to 3,858, and then quickly pulled back. My contract position was gone, and my position was liquidated.
After the liquidation, I stupidly stared at the computer, my mind was blank. Then, I sold most of the spot stocks on Huobi and OKEX at the bottom. Now I really regret it. 1,000 BNB, 10 WRMB of ADA, and some others, these are my medium- and long-term investments. If I had held these coins in the last bull market, I would have been financially free.
Next, I continued to do contracts, signing up for various training courses and joining various VIP memberships, hoping to quickly make back the lost funds. Driven by this mentality, I continued to lose money. I lost the last 100,000 USDT in contracts.
During the epidemic, I kept using my credit card and cashing out from various platforms. One was to maintain my life, and the other was to serve as principal. The more techniques and methods I learned, the less profit I made, and I kept losing money.
Finally, I stopped trading and calmed myself down for 3 months, looking back on my journey over the past few years. If I hadn't played with contracts and held on to spot, I would have lived a very comfortable life now. The road is chosen by oneself, and there is no turning back.
After that, I sorted out my trading system, and I finally chose Wyckoff's volume-price theory as my main direction. After several years of hard work, I also began to review the trading market. I hope to build a trading system that suits me and gradually realize profits. This is also the reason why I borrowed the name of Xiaoyaozi.
The road to trading is the most difficult. You can make endless money in the financial market, but you can also lose it all in this market. Moreover, the tuition fee of this market is the most expensive. Many people may not graduate even after paying the tuition fee. But once you graduate, the market is your ATM, and you can quickly cross from one class to another.
This is my mental journey since I entered the circle. I hope that friends who have the same experience can communicate and discuss together, cultivate their character, break through themselves, and get back the funds deposited in the market with interest as soon as possible to achieve financial freedom!
ps: You should suffer losses early. The money earned by luck will always be lost by strength. People can never make money beyond their knowledge. So once you enter the circle, be careful and never participate in projects beyond your knowledge. Even if it makes money, luck will come naturally if you know enough.
