I have been trading cryptocurrencies for over ten years, going from liquidation to achieving financial freedom, supporting my family through trading. In 2024, my capital multiplied by 50 times; if not for two instances of withdrawing funds to buy a house, it should have multiplied by 85 times.
Today, I will share my trading strategies and insights with friends in the cryptocurrency community.
There is a saying: standing on the shoulders of giants can save you ten years of struggle.
Master low-price chips, invest steadily, and not be swayed by market noise. When investing in cryptocurrency, one must first realize that low-priced chips are hard-earned and should never be easily lost to market fluctuations. Stay firm in your beliefs, remain calm, and prevent yourself from being disrupted by strategies such as wash trading and price suppression. Chasing high prices and operating all-in are often investment taboos. If the overall market trend is positive, building positions in batches during declines can effectively control risk, with lower costs and greater profit margins compared to chasing up high. The key lies in reasonably allocating profits to maximize the vitality of funds, rather than blindly increasing positions.
When the market rises sharply, first lock in some profits in a timely manner, seeking stability; when the market drops sharply, do not recklessly withdraw funds, keep your main position, and stabilize your mindset. Do not speculate, do not be greedy, and do not fear market fluctuations; always maintain a steady mindset to avoid operational errors.
Early low-price layouts or private placements of low-price coins stem from estimates of market experience and future potential, while the game in the secondary market relies more on technical and information analysis. Clearly distinguish between the front and back stages, ensuring that each step has clear logic and direction.
Building positions and offloading: step by step, controlling risk and returns
Cryptocurrency investment is a complete process from building a position to offloading, where operating in layers and segments is particularly crucial. Gradually widening price levels effectively controls risk and profit ratio points, forming a more flexible operation space. Investors also need to be familiar with the correlation effects and observe the trends of multiple cryptocurrencies. The performance of each cryptocurrency in the market is interrelated; they may seem independent on the surface, but they actually influence each other. Reasonably allocate positions of hot coins and value coins, balancing investment risk and profit returns; being overly conservative may miss opportunities, while being too aggressive may face high risks. Value coins are more stable, while hot coins fluctuate violently, making proper allocation essential.
Fund management and risk prevention: balance your mindset
In cryptocurrency investment, maintaining account liquidity, that is, 'having coins on the table, money in the account, and cash in the pocket,' is an important guarantee against market uncertainty. Never go all-in; allocate funds reasonably and master risk control strategies. This not only stabilizes investment mindset but also effectively controls risks. Invest with idle money rather than borrowed capital, as this is the foundation of investment. Master basic operations and thought processes, develop habits of recording and summarizing, and treat each operation's highs and lows as valuable experience, gradually cultivating the ability to filter information and make decisions.
Grasp the elements of successful investment
1. Investment should not rely on luck
If your profitable trades exceed your losing trades and your account value shows growth, it indicates that your investment strategy has become stable. However, if you have profited in nine out of ten trades, but one trade swallows all your gains, leading to negative growth in your account value, then you need to reflect. Investments should not rely on heavy positions easily; if the direction is wrong, decisively cut losses and plan your next steps.
2. Trust yourself, undisturbed
Often, our initial judgments may be correct, but after being influenced by others, we hastily change direction, resulting in missed opportunities. Investors must have a firm belief; often, the truth is held by a minority. Being confident in oneself is key to winning in the market.
3. Master trading skills
The cryptocurrency market has unique rules; going with the trend is a basic principle. Combine technical analysis with market trends to avoid counter-trend operations as much as possible. Improve your technical skills to enhance your sensitivity to market conditions.
4. Strengthen risk control
Cryptocurrency investment is high risk and high return; every trade requires proper risk prediction. Enter with a light position, increase appropriately with the trend, and avoid heavy positions at the first sight. Set stop-loss and take-profit for each trade to avoid greed or hesitation, thus maintaining investment flexibility and risk control.
5. Grasp the timing of entry
Many investors are easily attracted by market volatility, increasing their positions, but if the entry point is not appropriate, it can lead to losses. Waiting appropriately and choosing the right opportunity to enter is more important. Patiently wait for a favorable market; do not rush in due to temporary impatience.
6. Decisively exit, avoid hesitation
Hesitation when exiting can lead to significant losses for investors. When profits reach the expected target, exiting promptly is more reasonable than blindly pursuing higher returns. Avoid letting greed turn profits into losses. At the same time, cut losses in a timely manner to avoid intensifying losses and leave more capital for subsequent operations.
7. Maintain a stable mindset and avoid restlessness
Investment is a long-term process, and fluctuations in gains and losses are normal phenomena. Regardless of current success or failure, maintaining a good mindset helps better face future fluctuations. The market is unpredictable, and no one can always maintain accurate judgments. In the face of failure, summarize lessons, adjust your state, and continuously optimize strategies to ultimately achieve stable profits.
8. Pay attention to the news and analyze it in conjunction with technical aspects
News has an important impact on market trends; often, a major piece of news can overturn the original technical formation. Therefore, when making trades, it is necessary to combine news and technical analysis for a more comprehensive judgment.
9. Maintain sufficient funds and use them reasonably
If the investment funds come from borrowing, the mindset will become impatient, and operations will be restricted. Investment should be done with idle funds, as this not only stabilizes the mindset but also allows for more flexible additional and locking operations.
The core elements of successful investment: stable operations and team support. For investors who cannot filter quality cryptocurrencies, it is advisable to pay attention to professionals with mature strategies and stable experience. Whether in spot or futures trading, a slight intervention at the right time is sufficient. Opportunities are fleeting, so it is more important to grasp the rhythm. Cryptocurrency investment requires assessing the situation and choosing appropriate entry and exit timing. Successful investment relies not only on luck; choice is more significant than effort, and the circle determines fate. Focus on capable teams and follow experienced leaders, which will undoubtedly help you avoid detours in the cryptocurrency space and gain greater opportunities.
Cryptocurrency investment is full of opportunities and challenges, with the potential for stable profits as well as considerable risks. Therefore, staying calm, mastering the rules, and learning analysis tools is the only way to success.
Time is money; hesitation can lead to defeat! The essentials and techniques of swing trading in cryptocurrency
We need to understand that the Bitcoin market is particularly volatile, so how to make trades to earn money is the main focus. Firstly: The buying timing for swing trading: reference the bottoming central area. If the index rises too quickly, it will fall back to the central area, and if the index drops excessively, it will also rebound.
The true bottom also refers to an area; choose coins that have experienced a significant decline over time, with prices far from the 30-day moving average and a large deviation rate.
The price of the coin should be far below the historical transaction dense areas and the recent trapped position dense areas. In practical operations, pay attention to reference the distribution of moving costs; when the profit ratio in the moving cost distribution is less than 3, this type can be designated as a key focus.
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Impermanence brings impermanence brings impermanence!!!
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