Preface: From entering the industry to earning my first pot of gold
In 2017, I officially entered the blockchain field. At that time, the price of Bitcoin (BTC) was reaching new highs, and I began working in BTC mining. As I gained a deeper understanding of BTC, I gradually realized its potential value and started to attempt regular investment in BTC in the second half of 2018. During this process, I not only accumulated wealth but also earned my first pot of gold in life, achieving over tenfold returns on investment. Here are my investment experiences, strategies, and insights hoping to provide some reference for everyone.
One: Why should I regularly invest in BTC?
The reasons for regular investment in BTC can be summarized as follows:
The scarcity and value attributes of BTC
The total supply of Bitcoin is fixed at 21 million, with a halving every four years, known as 'digital gold'. Although I didn't own gold at the time, I deeply understood its value, and as a representative of digital assets, the scarcity and potential value of BTC cannot be ignored.Consensus among experienced OGs in the field
Many experienced OGs (old players) are increasing their BTC holdings, such as:The story of CZ (Zhao Changpeng) selling his house to buy BTC.
Chang Jia suggested on Zhihu that college students use 6000 yuan of spare money to buy BTC.
These classic cases have made me more convinced of BTC's investment potential.
Traditional capital and the layout of big players
Investors I know in the Web2 field and big players with millions or tens of millions in assets are also buying BTC, which further enhanced my confidence.The boom in BTC mining and industry consensus
At that time, the BTC mining industry was very hot, and I was constantly learning, further strengthening my expectations for BTC's future rise.Consensus on new highs in a bull market
The general consensus among insiders is that BTC will reach new highs in the next bull market. Over time, more and more retail and institutional investors will enter the market, further driving up BTC prices.Limited funds, suitable for regular investment
As a recent graduate, I don't have a lot of funds and can only rely on my monthly salary for regular investments. Regular investment is a low-threshold, relatively stable investment method, very suitable for my situation at the time.
Two: When is it appropriate to regularly invest in BTC?
Regular investment in BTC is not simply buying at a fixed time every month; it requires certain strategies to optimize returns. I mainly adopted the following two strategies:
1. Invest based on the Ahr999 index
The Ahr999 index is a metric for measuring the value of BTC. When the index is in the 'investment zone' or 'bottom-buying zone', I will buy; when the index is in the 'take-off zone', I will choose to observe and accumulate principal.
2. Seize the opportunity to buy at the bottom during sharp declines
Every crash is a good opportunity to buy at the bottom. The most impressive was the crash on March 12, 2020. At that time, the price of BTC plummeted, and many panicked, thinking BTC would go to zero. However, after calmly analyzing, I left a month's living expenses and used all remaining funds to buy at the bottom, ultimately welcoming a huge rebound.
Insights: Moments of sharp decline are often accompanied by extreme market panic, but they are also the best time to position oneself. As long as you have enough confidence in the asset, you must dare to act against the trend.
Three: When to stop regular investment and when to sell?
Timing to stop regular investment
I consistently invested in BTC when its price was below 100,000 yuan (RMB). Even during small bull markets, I did not stop buying. The core of regular investment is long-term persistence until the price enters the expected high range.
Selling strategies and timing
During the continuous rise in BTC prices, I firmly held my position until the price reached 300,000 yuan, at which point I began to sell in batches; when it reached 400,000 yuan, I sold all BTC. This strategy was formulated a year before the surge and was strictly executed.
Experience summary:
You can never buy at the lowest point, nor can you ever sell at the highest point.
Formulate a selling strategy in advance and strictly execute it to avoid changing plans due to market emotions.
Four: How to create a regular investment table?
To clearly record the investment process, I used an Excel spreadsheet to record each buying and selling transaction, specifically including the following content:
Buying records
Buying time
Buying quantity
Buying unit price
Total buying price
Reason for buying
Selling records
Selling time
Selling quantity
Selling unit price
Total selling price
Reason for selling
Profit and loss statistics
Total profit and loss: profits marked in green, losses marked in red.
Through such records, I can quickly understand the effects of each operation during review and continuously optimize my investment strategy.
Five: Can I still regularly invest in BTC during this cycle?
I believe regular investment in BTC is still a good choice, especially for investors who do not have other quality investment targets or the time and energy. The long-term value and market consensus of BTC still exist, and regular investment is a relatively simple and effective strategy.
Six: Points to note for regularly investing in BTC
Invest spare money without affecting life
Investing must use spare money, do not touch living, working, or emergency funds.Maintain sufficient cash flow
Regular investment is a long-term process that requires continuous financial support, especially during market declines, to seize bottom-buying opportunities.Investing against human nature
Buy when it falls, sell when it rises; it seems simple, but it is very difficult to achieve in practice. Investment requires overcoming fear and greed inherent in human nature.Resist the impulse to chase after the price
If you really can't resist chasing the price, you can set a small amount (like 10 USDT) to buy, fulfilling psychological needs while avoiding the risk of large amounts chasing the price.Diversify asset storage
Do not store BTC in one exchange or wallet; diversifying storage can reduce risk.Guard coins as if guarding a spouse
Holding BTC for a long time is not easy; it requires great patience and execution. If you find it difficult to control buying and selling desires, you can divide your funds into two parts: one for long-term regular investment and the other for short-term operations.
Conclusion: Achieving wealth growth through regular investment
Through regular investment in BTC, I achieved more than tenfold returns in the last cycle. The success of this strategy is inseparable from a deep understanding of the market, strict execution, and long-term patience. I hope my experience sharing can inspire you. If you are also interested in BTC, you might as well try regular investment, but be sure to plan according to your actual situation.
Finally, remember this phrase: 'Investment is against human nature. Sticking to strategy is the key to achieving wealth growth.'