Let me start with a brief self-introduction. I entered the cryptocurrency space in 2016 with initial funds of less than 10,000 yuan. With the help of altcoins and contracts, I have experienced many ups and downs and have accumulated profits exceeding 10,000 times. I am now a professional trader in the cryptocurrency spot and contract market, having made over 30,000 yuan in profits in 2019 alone.
Although I joined in 2016, I truly started profiting only from 2019 as a professional cryptocurrency trader. Over these more than five years, I transformed from a small novice into a big player. Therefore, I understand the mentality of small investors best. Today I share valuable insights, not to show off or write a personal biography, but to document my trading journey and share trading philosophies, hoping to help small investors in the cryptocurrency space avoid detours and achieve financial freedom sooner.
From small funds to millions: A detailed explanation of core strategies from entry to doubling. Part One: Starting Point - Begin with small funds and prepare psychologically. In the cryptocurrency space, starting with small funds to earn millions is not impossible, but you must clarify your mindset before deciding to embark on this path.
To succeed, you must first understand that investing in cryptocurrencies is not a game for getting rich overnight; it is a battlefield that requires continuous learning, patience, and rational operation. Many people enter the cryptocurrency space with fantasies of getting rich quickly, thinking they can invest a few thousand and earn millions in just a few months. However, this mentality 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 each trade to ensure you won't be eliminated from the market due to a single failure. Have you ever fantasized about getting rich overnight? I have too, but when I lost my first amount of money, I realized that this path is much harder than I imagined.
Part Two: In-Depth Learning and Research, Laying a Solid Foundation. In any investment market, knowledge is the winning weapon, and in the cryptocurrency space, project research is the most critical link. You need to know that blindly following trends not only leads to losses but also makes you miss out on real opportunities.
Research Tools: CoinMarketCap and CoinGecko: Used to view the basic information of cryptocurrencies such as market value, circulation, and trading volume.
Messari and Glassnode: Used to view on-chain data, project historical performance, and investment trends.
How to research a project:
1. White Paper Analysis: The project's white paper is its 'manual' for vision, technical roadmap, and application scenarios. A good project must have a clear landing scenario and the ability to solve industry pain points.
2. Team Background: The technical background of the team and their prior project experience are crucial. For example, the technical team of Ethereum founder Vitalik directly adds significant credibility to the project.
3. Investment Institutions: Support from top investment institutions often means project sustainability. For example, projects invested by a16z usually attract significant attention.
4. Community and Developer 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 Strategy - Precise Position Building, Reasonable Layout. Trading strategy is the core of the entire operation handbook. How to make the right decision at the right time is the key to your success or failure. Many people lose money because they chase highs or miss suitable entry opportunities.
Strategy 1: Build Positions Gradually to Avoid Risks. The market is highly volatile; to seize good opportunities, gradual position building is the best strategy. Do not invest all your funds in a single project at once; instead, enter the market gradually in stages. Initial Position: When building your first position, invest a maximum of 20%-30% of your planned total position. Maintain sufficient liquidity to increase your position when the market corrects. Position Increase Timing: Use technical analysis tools (like candlestick charts, RSI, etc.) to increase your position when the market corrects or consolidates. Risk Control: For every investment, always set a stop-loss point to ensure that you do not suffer significant losses due to severe market fluctuations.
Strategy 2: Follow the Trend and Go with the Flow. In a bull market, going with the flow 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 starts to attract a lot of attention, it may indicate that its upward potential has been unlocked.
Part Four: Timing - When to act and when to take profits. In cryptocurrency investing, the worst thing is not knowing when to take profits. Many people see their funds rising but always want to wait for 'higher', leading to a situation where once the market reverses, previous gains evaporate instantly.
Profit-Taking Strategy:
1. Gradual Profit-Taking: Like building positions, profit-taking should also be done gradually. You can sell 50% of your holdings when your expected target is reached while retaining part of the position to continue observing.
2. Daily Target Setting: Set profit-taking targets based on the project's long-term potential and market environment; do not chase short-term profits. For example, when a project has increased by 3x or 5x, you might consider taking partial profits. Avoid FOMO: The market will have ups and downs, and you cannot catch every surge.
Therefore, after making a 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 be prepared 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 investors, a single failure could mean complete exit.
Core Defensive Strategy:
1. Control Position: Never bet all funds on one project; it is recommended that investment in a single project does not exceed 20% of total funds.
2. Timely Stop-Loss: When the market undergoes adverse changes, decisively stop-loss. For example, if the price of a cryptocurrency falls below your set support line, sell immediately, even if it means taking a loss; do not hold onto any illusions during the decline.
3. Risk Hedging: You can hedge risks by holding stablecoins (like USDT) or investing in multiple projects to reduce the loss of a single project failing. Conclusion: Persist in learning, solidly build your foundation, and achieve your wealth goals. Investing is never a game of luck but relies on strategy, knowledge, and patience.
By employing the correct trading strategies, gradually building positions, timely profit-taking, and effective risk management, you can definitely achieve the leap from small funds to financial freedom in the cryptocurrency space.
Remember that the most important thing is not to succeed every time but to learn from failures and be fully prepared when the next market opportunity arises.
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 market analysis, risk control, and persistent learning can remain invincible in this rapidly changing market.
Finally, let me share some advice in the cryptocurrency space:
1. Opportunities are waited for; only patience can hear the voice of wealth.
2. For investors, the most important thing is to grasp opportunities that belong to you.
3. Do not be tempted by opportunities that do not belong to you; do not lose your composure over opportunities that are beyond your grasp. This is the composure that investors must possess.
4. It's important to make the right investment, but it's even more crucial to determine how much to bet after making the right choice.
5. Very few people can make big money in the cryptocurrency space by predicting short-term price fluctuations; otherwise, they would be the world's richest. If not, it indicates that they only report good news and not the bad. Even if luck is on their side momentarily, they will ultimately face failure.
6. If you lose a lot of money, who can maintain a good mindset? A good mindset is built on the foundation of not suffering significant losses.
7. The world is unpredictable, and the market is hard to gauge. Studying the market is primarily to grasp continuous opportunities and avoid continuous risks. Sudden, occasional rises or falls may come too quickly for you to grasp or avoid; this is not your fault. Maintain a calm mindset and do not give up on yourself.
8. You can choose not to act, but you cannot completely go in the opposite direction.
9. Do not be driven by the urgency of making money, and do not pressure yourself to make frequent hasty decisions.
10. Focus on high-probability events while guarding against the potential large risks that low-probability events may cause. Three years in the industry, five years of understanding, ten years of reigning. Trading is not about getting rich in one go but achieving reasonable profits, making it sustainable, stable, and with high probability, thus allowing oneself to continuously acquire wealth. Professionalism creates value, and details determine success or failure. If you currently feel helpless or confused while trading in the cryptocurrency space, I hope my sharing can provide you with some inspiration and help!
If this helps you, I hope to receive your likes and follows.