How to find true value amidst the madness of the cryptocurrency space?
The cryptocurrency space is known for its 'tenfold life', but amidst the frenzy, there are also bubbles and traps. After years of ups and downs, many friends and seniors around me are exploring 'how to find true value' in their own ways; their experiences might inspire us. True story: The struggle between madness and calmness. One of my seniors, Old Li, was an experienced player in the stock market in his early years, but after accidentally encountering Bitcoin in 2017, he quickly shifted to the cryptocurrency space. Initially, he was attracted by various emerging projects, constantly chasing hot spots, and doubled his capital in just a few months. However, with the market correction, he suffered heavy losses due to heavily investing in a scam project and even temporarily exited the cryptocurrency space.
FOMO, Pump and Dump, Waterfall? An Introduction to the Jargon of the Cryptocurrency World
The cryptocurrency market is a rapidly changing environment with both opportunities and risks. For beginners, there are not only complex market conditions and trading strategies but also a set of jargon that can be hard to grasp. What is ‘FOMO’? What are the tricks behind ‘pump and dump’? What does ‘waterfall’ mean? Today, we will have a quick introduction to help you understand the true meanings behind the jargon in the cryptocurrency world!
1. What is FOMO? FOMO is short for ‘Fear of Missing Out,’ meaning the fear of missing an opportunity. In the cryptocurrency world, it refers to the psychological state of investors who worry about missing a wave of market movement or opportunity, leading to impulsive buying of a specific cryptocurrency.
To what extent can dealers see through retail investors?
There was a senior who entered the cryptocurrency world with 100,000 yuan, and now his assets have reached 10 million yuan. He once said something that greatly benefited me: 'The cryptocurrency market is like a crowd of rabble; as long as you control your emotions, this market can become a cash machine!' During the Lehman crisis, the idea of 'cash is king' was once popular, and everyone was smartly waiting for lower entry opportunities. However, making the decision to liquidate is far more difficult than re-investing. During market lows, pessimism is at its peak, and many people are unwilling to enter. Only after the market starts to rise, with moving averages showing a bullish arrangement and trends moving upward, do they find the courage to buy. Investors originally hoped to 'buy low and sell high,' but often ended up 'chasing highs and cutting losses.'
What do the dealers fear the most and what methods do they have?
There is a natural antagonism between the main dealers and retail investors. The dealers often use various means to spread false information or create false technical breakthroughs to induce retail investors and rob them of their funds. This situation is not an illusion of retail investors, but a real phenomenon. The reason why the dealers dare to act in this way is that people generally follow the crowd. They are well aware of this law, so they can accurately grasp our emotions and use the weaknesses of human nature to make profits.
From another perspective, we can also try to understand the banker's thinking and follow the market trend to get their money. This is actually a psychological game that requires us to have a strong ability to think in other people's shoes and control our own human weaknesses. Today I want to discuss what the banker is most afraid of and analyze their weaknesses from a technical perspective so that we can reversely use this information to make a profit.
The US government plans to auction 69,370 bitcoins: Should investors panic?
Recently, the news that the US government will auction about 69,370 bitcoins has attracted widespread attention from the cryptocurrency community. These bitcoins come from illegal assets seized by law enforcement agencies in the past, mainly involving dark web transactions and criminal activities. The scale of this auction has triggered discussions about short-term market fluctuations, and once again highlighted the dynamic changes in the US government's cryptocurrency regulation. Auction Background: The Origin and History of Bitcoin Most of these bitcoins originated from the enforcement actions of the U.S. Department of Justice in 2016 and other periods. At that time, law enforcement agencies seized bitcoins suspected of illegal transactions and kept them as evidence. According to government regulations, these bitcoins need to be auctioned instead of directly entering the market. Similar auction events have caused market price fluctuations in the past, but as the crypto market matures, the market's response to such events has gradually stabilized.
Does Bitcoin’s price volatility make it difficult for it to be a reliable store of value, or will it continue to be a “high risk, high return” investment tool?
Since its birth in 2009, Bitcoin has gradually transformed from a technological experiment that was watched by the sidelines to one of the world's most well-known cryptocurrencies. However, despite its potential advantages such as decentralization and anti-inflation, Bitcoin's price volatility has always been the biggest controversy over whether it can become a reliable store of value. Recently, with Trump's return to power and his support for Bitcoin policy, Musk's remarks, and the dynamics of the Federal Reserve, the market landscape of Bitcoin may change significantly. These factors together shape Bitcoin's dual identity as a "store of value tool" and a "high-risk investment tool."
Contract Trading 'Lifeline' Guide, Keep it in Mind
If you want to enter the high-risk 'battlefield' of contracts, all friends must remember the following key points; they are crucial! 1. Don't panic after a stop loss: Contract trading is essentially about taking small risks for big rewards; experiencing losses is quite normal. After a stop loss, some rush to open positions to quickly recover losses; others wisely pause and enter a cooling-off period. Follow the advice: if you frequently hit stop losses, absolutely do not act impulsively; stop immediately, calm your thoughts, review your strategy to find loopholes, and rashly opening positions will only worsen the situation. 2. Abandon the pursuit of quick gains: Trading is definitely not a means to instant wealth. Rushing to heavily invest or eagerly open new positions after a loss is a common mistake among newcomers. Remember, maintaining a stable mindset is key; accumulating wealth requires a steady stream, and impatience won't help you succeed.
Why are most people doomed to lose money in the crypto space?
We use proof by contradiction. Let’s assume that most people in the crypto space are making money while a few are losing. What would happen in such a scenario? The market is a place for trading; the market itself does not create profit. Holding Bitcoin does not yield gains. The so-called money-making from trading coins actually happens during the process of you buying while I sell. In reality, some traders obtain funds from other traders; it is merely a process of fund transfer. Simply put, if you can make money, it means someone is buying at a high price. While you earn, someone else must be losing.
1. Buy with patience, sell with determination, hold with confidence. 2. Buy on small dips during an uptrend; sell on small rises during a downtrend. 3. Buy in parts, no losses; buy all at once, more losses. 4. A support level held for too long will eventually break, a resistance level attacked for too long will eventually fall. 5. Both bears and bulls can make money, only the greedy do not profit. 6. Eat until 80% full, make profits at 80%.
The iron rules and experience of cryptocurrency trading, I hope it will be useful to everyone
Continued from previous article 1. Avoid buying coins at high prices. Keep a calm mind. It doesn't matter whether the coin appreciates or not. Treat it as if it doesn't exist. If you miss it, you miss it. Just pretend that the coin does not exist. There are so many coins on the market, why bother holding on to one and not letting go.
2. Coins are divided into two categories. Coins with good buying opportunities are high-quality coins, and vice versa. Coins with large-scale buying points are the best choice. Patiently wait for them to become truly high-quality coins. This is the correct mentality.
3. Mentality is crucial when speculating in cryptocurrencies. Many people buy in even though they know it is not the right time to buy. This is a mentality problem. If it is not solved, any theory will be invalid.
Knowing why you lose money, you can know where you can make money
Let’s first summarize the reasons for losing money. Only by understanding the reasons for your losses can you understand how to find profit opportunities.
1. No stop loss, short-term becomes medium-term, medium-term becomes long-term As an investment practitioner for many years, we are often asked, "What is the most common mistake investors make in the market?" My answer is the lack of timely stop losses. Since long-short two-way investment has a leverage effect, both profits and losses will be magnified. The consequences of not stopping losses in time are often very serious. The same is true for the cryptocurrency market. We all know that in this market, the most valuable asset is our investment capital. Capital is like ammunition on the battlefield. If you lose ammunition, you are doomed to fail.
In the field of cryptocurrency, investors hope to discover those coins with huge potential for hundredfold returns to achieve rapid wealth growth. However, it is not easy to accurately identify the true hundredfold coins among numerous projects. However, by mastering the following six tips, you will be able to improve your identification skills and be more likely to seize wealth opportunities. Tip One: Pay attention to holding costs. When you believe a certain coin has hundredfold potential, be sure to consider your holding costs. Enter decisively at the right moment, especially after a black swan event in the market, to acquire more chips at a lower cost. This way, when the project rises in the future, you will have a greater profit margin.
Today, I had tea and chatted with a cryptocurrency expert who shared his investment experience: starting with 400,000 in the crypto market, experiencing losses down to just 80,000, but now his assets have exceeded 10 million. The key that changed his fate was persistent learning and cognitive improvement. He summarized five valuable insights, hoping to inspire everyone! 1. Do not rush to stop losses When the market drops sharply in the morning, do not rush to stop losses. This is usually an overreaction to negative news from the previous night; it is advisable to patiently wait for market repair and reversal. When the market rises sharply towards the end of the session, also be cautious about chasing prices, as some major players may be testing the waters or inducing buying, and the next day may open lower to suppress and accumulate.
Why do so many people play contracts even knowing about forced liquidation?
Many friends who are new to contract trading may not fully understand its underlying logic and some key concepts, and there may even be some blind spots. This article will explain the rules of contract trading, common terminology, as well as the calculation methods for fees and funding costs in simple language, helping everyone avoid unnecessary losses.
In simple terms, the core of contract trading is 'buying up'
or 'selling down'; as long as the direction is correct, profit can be made. In the exchange, 'buying up' corresponds to 'going long' or 'buying', while 'selling down' corresponds to 'going short' or 'selling'.
Is the bull market coming? How to choose the currency?
If you choose the right currency in a bull market, making ten times the money is not a dream, and ordinary people can also make tens of millions!
In the cryptocurrency world, most people are actually ordinary people, but to be honest, many people don’t understand how the cryptocurrency world works. Simply put, the cryptocurrency world is like our usual financial management. The goal is to make money steadily and double the funds in hand within a period of time. We must not only wait for opportunities to come, but also have a keen eye to identify which opportunities are real wealth. Usually, you can try small amounts, but once you encounter a once-in-a-lifetime opportunity, you must go all out without hesitation, just like a cheetah hunting.
The bull market is coming, and various channels and news are emerging one after another, dazzling people. Faced with numerous cryptocurrencies, how to choose?
✨First, you need to master some basic charting skills and establish your own simple trading rules. This way, when you see someone sharing a particular coin, you can combine it with your own judgment to decide whether to buy. Before buying, be sure to clarify the following points: ① Investment strategy: Is it short-term trading or long-term holding? ② Position management: How much capital to invest? ③ Stop-loss setting: Set a reasonable stop-loss point. ④ Take-profit plan: From which position to take profit in batches?
Strictly adhere to these principles, rather than asking whether to buy when the price rises, or hesitating whether to continue holding when stuck. Making a profit in the crypto world is not easy, especially in the current market environment; maintaining a clear judgment is particularly important.
Is it really that difficult to make 1 million RMB in the cryptocurrency world? What are the ways?
In the cryptocurrency world, if you want to achieve the principal target of 1 million, especially if you start from tens of thousands of yuan, there is only one way to go, that is rolling positions. 💰
When you accumulate 1 million yuan in capital, your whole life seems to be completely renewed. Even without using leverage, you can earn 200,000 yuan just by relying on a 20% increase in spot prices, which is the annual income limit for most people. In addition, in the process of making tens of thousands of yuan from one million, you will gradually understand some ideas and logic of making money. At this time, your mentality will become more peaceful, and the next operation will become copy and paste.
The "cryptocurrency mantra" I saw feels pretty good, so I'll share it with everyone.
If there’s a big drop in the morning, add to your position; if there’s a big increase in the morning, reduce your position. In the afternoon, only reduce your position during a big increase; if there’s a big drop in the afternoon, buy the next day. In the morning, don’t sell your coins when they drop; add to your position when the price is low T+0. In the afternoon, don’t chase the price up; reduce your position when the price is high T+1. Look for 10 AM during a morning rise, and 2 PM during an afternoon rise; sell at the highest point. If the coin is strong, it will reach a cap at 10 AM; if it’s not strong, it will reach a cap at 2 PM. Control your position size without being overconfident; rolling operations are the best strategy. Don’t trade short in a bull market, and don’t trade long in a bear market. Don’t panic sell in a bull market, and don’t chase prices in a bear market.
Key Narratives for 2025 In the upcoming year of 2025, the following areas will become the market's focus: BIO airdrop launched
$BIO pre-market trading has begun, and the market is optimistic about its $100 million market cap.
Multiple DAOs have announced $BIO airdrops, including $VITA, $URO, $RIF, and others.
DeSci track tokens continue to attract attentionTokens like RSC, RIF, URO, SCI HUB are expected to continue being hyped in the market and are worth investors' attention next year.Korean market heats upWith the participation of Musk, the South Korean president, and Grayscale, the Korean market has quickly joined the cryptocurrency craze. Notably represented by $UXLINK.
$SUI: The shining star of 2025, are you ready to embrace its rise?
In the ever-changing cryptocurrency market, every subtle fluctuation may hide huge opportunities. Today, we focus on $SUI, this brilliant star standing steadily at the $4.3 price level, attracting the attention of countless investors. 🌟 Stable prices, igniting market enthusiasm 🌟 Currently, $SUI's price is as solid as a rock, conveying its extraordinary potential to the market. Many investors are full of expectations for its future, generally believing that it will see a significant rise. This enthusiasm has caused $SUI's greed index to soar to 73, which is not just a number but a strong confidence in its future prospects.