A guide to small funds in the cryptocurrency world reaching tens of millions: A detailed explanation of core strategies from entry to doubling.
Part One: Starting Point—Starting with small funds, prepare mentally.
In the cryptocurrency world, starting with small funds and making tens of millions is not impossible, but before you decide to embark on this path, you must clarify your mindset. If you want to succeed,
First, it is important to understand that the cryptocurrency market is not a game of getting rich overnight, but a battlefield that requires continuous learning, patience, and rational operation.
Many people enter the cryptocurrency world with the fantasy of getting rich, thinking of investing a few thousand and then making millions in just a few months. However, this mindset often leads to hasty operations and blind following, ultimately resulting in being eliminated by the market.
Mindset anchor:
1. Stay rational: Do not pursue short-term profits, be prepared for long-term battles.
2. Risk awareness: No matter how confident you are, always set a stop-loss point before every trade to ensure you won't be wiped out by market fluctuations. Have you ever fantasized about getting rich overnight? I have too, but when I lost my first investment, I realized that this path is much harder than I imagined.
Part Two: In-depth learning and research to build a solid foundation.
In any investment market, knowledge is the weapon for victory, and in the cryptocurrency world, project research is the most critical aspect. You need to know that blindly following trends not only leads to losses but also makes you miss real opportunities.
Research tools:
CoinMarketCap and CoinGecko: Used to view the market capitalization, circulation, trading volume, and other basic information of cryptocurrencies.
Messari and Glassnode: Used to view on-chain data, historical project performance, and investment trends.
How to research a project:
1. White paper analysis: The project’s white paper is its "instruction manual" for vision, technical roadmap, and application scenarios. A good project must have clear landing scenarios and the ability to solve industry pain points.
2. Team background: The technical background and past project experience of the team are crucial. For example, the technical team of Ethereum founder Vitalik directly adds great credibility to the project.
3. Investment institutions: Support from top investment institutions often indicates a project's sustainability. For example, projects invested by a16z usually receive significant attention.
4. Community and development activity: A long-term promising project must have a strong developer community and active technical updates. You can check the frequency of code updates and developer participation through GitHub.
Part Three: Trading Strategies—Precise position building and reasonable layout.
Trading strategy is the core of the entire operational manual. How to make the right decision at the right time is the key to your success or failure. Many people lose money often because they chase highs or miss suitable entry opportunities.
Strategy 1: Build positions in batches to avoid risks.
The market is highly volatile, and to seize good opportunities, building positions in batches is the best strategy. Do not invest all your funds in one project at once; instead, enter the market gradually in stages.
Initial position: Invest a maximum of 20%-30% of your planned total position during the first entry. Maintain enough liquidity so that you can add positions when the market pulls back.
Timing for increasing positions: Use technical analysis tools (like candlestick charts, RSI, etc.) to add positions during market pullbacks or consolidations.
Risk control: For every investment, always set a stop-loss point to ensure that you will not incur huge losses due to severe market fluctuations.
Strategy 2: Follow the trend and go with the flow.
In a bull market, going with the trend is key. Through technical analysis, you can identify certain rebound points at important support levels. At the same time, pay attention to the market sentiment of the project, such as Google Trends and social media discussions. When a certain cryptocurrency begins to attract a lot of attention, it may indicate that its upward potential has been opened.
Part Four: Timing—when to act and when to take profits.
In the cryptocurrency market, the biggest taboo is not knowing when to take profits.
Many people watch their funds rise but always want to wait for a 'higher' point, resulting in failure!
Once the market reverses, the previous gains evaporate instantly.
Profit-taking strategy:
1. Take profits in batches: Just like building positions, you also need to sell in batches when taking profits. You can sell 50% of your holding when your expected target is reached and retain part of your position to continue observing.
2. Daily target setting: Set profit-taking targets based on the project's long-term potential and market environment, and do not be greedy for short-term profits. For example, when the project's increase reaches 3x or 5x, you can consider partial profit-taking.
Avoid FOMO:
The market will have ups and downs, and you cannot catch every rise. Therefore, after making a good profit-taking plan, you must strictly execute it and not change your decision due to temporary market fluctuations.
Part Five: Risk management and defensive strategies—always prepare for the worst.
Risk management is an indispensable part of any investment strategy. No matter how optimistic you are about a project, always maintain risk awareness. Especially for small fund investors, a single failure might mean total exit.
Core defensive strategy:
1. Control your position: Never bet all your funds on one project; it is recommended that the investment in one project does not exceed 20% of your total funds.
2. Timely stop-loss: When the market undergoes adverse changes, decisively stop-loss. For example, if the cryptocurrency price drops below your set support line, sell immediately, even if it means a loss. Do not hold onto false hopes during the decline.
3. Risk hedging: You can hedge risks by holding stablecoins (like USDT) or through multi-project portfolio investments to reduce losses from a single asset failure.
Conclusion: Keep learning, be steady and grounded, and achieve wealth goals.
The cryptocurrency market is never a game of luck; it is about strategy, knowledge, and patience. By employing the right trading strategies, building positions in batches, taking profits in a timely manner, and effectively managing risks, you can completely achieve the leap from small funds to financial freedom.
Remember, the most important thing is not to succeed every time, but to learn from failures and prepare thoroughly for the next market opportunity.
Success lies in continuous learning, adjustment, and execution. The world of cryptocurrencies is full of opportunities but also full of traps. Only those who truly understand how to analyze the market, control risks, and persist in learning can stand undefeated in this rapidly changing market.
Finally, let me share some advice in the crypto circle:
1. Opportunities are to be awaited; patience is needed to hear the voice of wealth.
2. For investors, the most important thing is to seize opportunities that belong to them.
3. Do not be moved by opportunities that do not belong to you, and do not be disturbed by opportunities that you cannot grasp; this is the composure investors must possess.
4. It is important to have the right investment view, but it is even more important to decide how much to invest after getting it right.
5. Very few people can rely on predicting short-term price fluctuations to make big money in the cryptocurrency world; otherwise, they would be the world's richest. If not, it shows that they only report good news and not bad. Even if they have good luck for a while, they will eventually end in failure.
6. If you lose a lot of money, whose mindset can remain good? A good mindset is based on not losing too much.
7. The world is unpredictable, and the market is hard to gauge. Researching the market is mainly to seize continuous opportunities and avoid continuous risks. Sudden, occasional rises or falls that you cannot grasp or avoid are not your fault. Keep a calm mindset and do not give up on yourself.
8. You can choose not to trade, but you cannot completely go against the overall direction.
9. Don't be pushed by the urgency to make money, and don't force yourself to make hasty decisions frequently.
10. Pay attention to high-probability events while guarding against the potential large risks caused by low-probability events.
Three years to enter the industry, five years to understand the industry, ten years to reign.
Trading is not about getting rich overnight, but about reasonable profits, being able to achieve long-term, stable, sustainable, and high-probability gains, thus allowing oneself to continuously acquire wealth.
Professionals create value, and details determine success or failure.