I made 32 million in the last bull market. Let me share my experience of making my first pot of gold in the crypto world.
I originally did e-commerce in Shenzhen, earning around 20,000 to 30,000 a month, with monthly expenses over 10,000, able to save about 10,000 to 20,000 each month. Like many 'Shenzhen drifters,' I also wanted to buy a house in Shenzhen. However, with this income level, I had no idea when I would save enough for a down payment. I encountered a bottleneck in work income, and it was hard to get a raise. It wasn't until later that I got into the crypto world that I realized I could leverage virtual currencies to multiply my assets! I was lucky to meet a few good mentors when I entered the crypto world; they truly were my greatest fortune, my talent scouts! At that time, I put most of my savings into digital currencies, buying ETH in large amounts, plus a small portion of BTC and some miscellaneous altcoins. I added positions several times during big corrections but didn’t operate much after that, and even during significant crashes, I didn’t sell but added some promising altcoins. Until November 2021, Bitcoin broke the historical high of $69,000. The market sentiment was very high, and many believed it would break $100,000, but actually, $69,000 was the highest point of this round of the bull market. By the end of November, I saw the market trend weakening and deduced that the bull market was likely over, so I cleared most of my positions. At that time, Bitcoin was around $58,000, and Ethereum was around $4,400. It turned out to be a very wise choice, while some retail investors with 'bullish fantasies' shouting 'eternal bull' and clinging to 'tail-end rallies' have now been trapped.
After the bull market in 2021 ended, my capital account had about 22 million RMB+. I took out 4 million for a down payment to buy a house in Shenzhen (after graduation, I transferred my household registration to Shenzhen, and after three years of social insurance, I was eligible to buy a house), 2 million for daily use, and left the remaining 26 million in the exchange.
Regarding cryptocurrency trading and compound interest, I will share my personal experience.
The first ten million took the longest and was the most painful. The trading system was continuously reshaped and honed over a year and a half.
The second ten million took three months.
The third ten million only took 40 days.
The fourth ten million only took 5 days.
75% of the funds were earned in the last six months.
I now truly understand the power of compound interest that old Feite talked about.
To summarize what I did well: there is a very simple method for trading cryptocurrencies that allows you to maintain 'ever-increasing' profits. At the end of last year, I played with 200,000, and now it's 20 million. It’s an easy hundredfold profit. The experience summary is below for everyone's reference to learn how trading to make money is actually this simple; just master these three steps! Master it well, and you can easily multiply your account by ten!
Step one: first look at the trend.
Step two: find key positions.
Step three: find entry signals.
Enter the market, make profits, close positions, and leave.
Isn’t it simple?
Let’s elaborate on the details below.
Step one: first look at the trend.
The state of a market can yield three results in a major trend: up, sideways, down. What does a major trend mean? Look at time frames longer than 4 hours, such as 4-hour, daily, weekly (my personal habit is to look at 4-hour). Go long when it rises, go short when it falls, and do not trade when it moves sideways.
Step two: find key positions.
Whether the market is rising or falling, it will jump like a bouncing ball, level by level from bottom to top or from top to bottom. What we need to do is enter the market at the position where it jumps and exit at the next drop point. How to find the precise steps becomes key. #Bitcoin This is what we refer to as key positions (main support and resistance levels).
Step three: look for signals. Generally, if you find a trend in a large cycle, you should go to a smaller cycle to find trading signals to enter the market. #Ethereum Everyone has different strengths in trading strategies; mastering one or two well is enough. More importantly, quickly formulate a trading strategy + a complete trading strategy includes.
(1) Target - what to trade;
(2) Position size;
(3) Direction -- long or short;
(4) Entry point -- at what point to trade;
(5) Stop loss - when to exit a losing trade;
(6) Take profit -- when to exit a profitable trade;
(7) Countermeasures -- how to deal with emergencies;
(8) Operations after the backhand trade ends.
Also, when withdrawing money from the crypto world, pay attention to a few points to effectively prevent your account from being frozen when receiving dirty money.
(1) For over-the-counter transactions, try to choose large platforms like Binance and OKEx. These platforms have good communication channels and risk control measures with domestic regulatory and law enforcement agencies.
(2) Try to choose OTC platforms that support T+1/T+2 withdrawal strategies. Although cash cannot be withdrawn immediately after selling coins, it reduces the risk of being suspected of money laundering through over-the-counter trading. For example, trading on Binance T+1 or Huobi Select (compared to free trading or T+2 withdrawals).
(3) Avoid directly using stablecoins like USDT for OTC transactions; try to use mainstream coins like BTC and ETH for OTC trading.
(4) The bank card used for OTC transactions must be an independent card, not used for regular transactions, hence separated from the salary card, so even if frozen, it does not affect the use of other funds. Investigations can easily explain cash flow.
(5) For OTC transactions, try to use local bank cards, such as city commercial banks and rural commercial banks in many places. Large and medium-sized commercial banks and joint-stock banks like Agricultural Bank of China and Industrial Bank have branches nationwide, and law enforcement can basically freeze them directly.
(6) Do not engage in regular transactions with ordinary merchants, nor with regular users. If the same user indirectly purchases more than 3 times in a day, or sells shortly after buying, it is suspected of money laundering, which is very dangerous.
(7) Find reliable OTC sellers for transactions. Try to actively accept orders from large traders and market makers, reduce order placements, and avoid merchants from problematic areas. In fact, as a regular user, it is challenging to distinguish which traders are trustworthy. For example, friends who frequently interact with Huobi Blue Shield service merchants have also been frozen.
(8) Reduce the frequency of withdrawals and increase the cash amount.
(9) After OTC trading ends, do not switch to your other bank cards to avoid contaminating other funds and causing trouble for investigations. If you urgently need money, you can withdraw cash through an ATM or online consumption.
(10) Try to choose working days to withdraw cash. It’s best to choose normal working hours like weekdays, such as from 9:00 AM to 9:00 PM for withdrawals.
(11) After receiving the payment, do not transfer immediately. After selling USDT for RMB, do not transfer it out right away; keep it in the account for a while.
After ten years of trading cryptocurrencies, I’ve summarized it into 16 sentences, sharing them with everyone. Forward this to your friends who trade cryptocurrencies; it will surely benefit them for a lifetime!
1. Buy altcoins in a bull market, buy BTC in a bear market.
2. Focus on coins that show increased volume at the bottom, which are often signals to start.
3. Buying opportunities arise when coins in an upward trend pull back to significant moving averages.
4. Do not trade frequently; making a few big trends correctly in a year is enough.
5. Control your position well; never go all in, leave yourself room.
6. Do not average down on losing junk coins; timely stop-loss is the wise choice.
7. News can only serve as a reference; do not rely on news for all-in bets.
8. Do not touch unfamiliar coins; focus on the sectors you are familiar with.
9. Do not be swayed by market sentiment; maintain calmness and rationality.
10. Altcoins that have risen a lot will certainly fall; those that have fallen a lot will not necessarily rise. Choice is crucial.
11. When most people are optimistic, it is often when the risk is approaching.
12. Learn to stay out of the market; wait for clear signals from the market before entering.
13. Do not follow the hype of hot topics; trends often come quickly and go just as fast.
14. Have your own trading system and strictly adhere to it.
15. Investing is a long-distance race; maintaining a good mindset will allow you to smile in the end.
16. Investing does not guarantee profits; there is a high probability of loss. Therefore, try to invest spare money; using spare money for investment will help maintain a good mindset, increasing the probability of winning.
Full-time trading in cryptocurrencies has its ups and downs; but the real profits were made by catching these two bull markets!
1. The risk of each trade must not exceed 10% of the trading principal, that is, 10% of the trading principal. Newbies are advised to keep it between 2%-5%!
2. After entering the market, never blindly close positions due to lack of patience. Market movements take time to unfold; have enough confidence and patience until the market proves your operation is wrong.
3. Must execute according to the plan; excessive trading is not allowed.
4. After trading correctly and making a profit, use the method of adjusting stop-loss and take-profit as a safeguard, boldly pursue even more substantial profits until the trend changes.
5. After entering the market, you cannot casually cancel stop-loss orders. Once you enter the market, your entire trading process, which follows you throughout your life, is a risk control process. Therefore, after entering, you must set up protection and strictly prohibit naked trading.
6. Avoid adding costs after smooth trading, i.e., avoid adding positions.
7. Do not casually switch from long positions to short positions; this is a high-skill operation.
8. When buying and selling becomes second nature, avoid casually increasing your position; the probability of making mistakes is very high because you become careless.
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