In the ever-changing field of cryptocurrency, if you want to successfully gain wealth, you only need to focus on one key point: eliminate greed and always maintain a stable mentality.
I firmly believe that in the cryptocurrency world, as long as you are not greedy, it is not difficult to make money. On the contrary, if you are too greedy, most people will often suffer heavy losses, and only a very few people can make a lot of money by chance.
Why do we assert this? Today’s cryptocurrency market has gradually entered a mature stage. Generally speaking, the more mature the market is, the rarer the chances of getting rich overnight become.
On the one hand, if you keep a non-greedy mentality, it is not out of reach to gain profits. From a long-term perspective, the field of cryptocurrency is always in a process of continuous development. In such an industry that keeps moving forward, it is completely feasible to accumulate a certain amount of wealth. Even if you don’t have superb investment skills, choosing to invest in BTC is also a stable way of financial management. If you stick to it for a long time, investing in BTC will most likely bring good returns.
On the other hand, if one is too greedy in pursuit of excess returns, attempting to achieve tenfold or hundredfold profits, it is very likely to end up losing everything. Take the bull market from 2023 to 2024 as an example; many people abandoned Bitcoin in favor of altcoins, hoping to achieve higher returns. However, the reality is that their returns are far inferior to Bitcoin. Since 2023, the price of Bitcoin has risen from 20,000 to 70,000, tripling or quadrupling. Many new investors blindly bought low market cap altcoins, resulting not only in lower gains compared to Bitcoin but also in significant losses for many. In summary, if you are just an ordinary investor with limited understanding of blockchain technology and a shallow comprehension of wealth, then in the cryptocurrency market, as long as you adhere to the principle of 'not being greedy,' earning a certain amount of wealth through investment is not difficult. Although this wealth may not allow you to leap across social classes, it is sufficient to enhance your quality of life.
Of course, if you are not satisfied with the returns from dollar-cost averaging in BTC, you might as well delve deeper into the following iron rules of the cryptocurrency market to help you gain more wealth.
A sharp decline tests quality coins: A sharp decline is a key moment to test quality coins. When the market falls significantly, if the coins you hold only experience a slight drop, it often indicates that there are market makers actively protecting the price and preventing it from declining. Holding such coins is likely to yield future gains.
Newbie trading rules: For newcomers to the cryptocurrency market, if you do not know how to grasp the timing for buying and selling, there is a simple and direct method. For short-term operations, hold above the 5-day moving average and decisively sell once it falls below; for medium-term operations, use the 20-day moving average as a reference, holding above the 20-day line and selling when it falls below. There are various investment methods, and the key is to find one that suits you. In trading, the difficulty lies not in the lack of methods but in the inability to effectively implement them. As long as you can mindlessly persist in using a method that suits you, surpassing 90% of investors is not difficult; as the saying goes, 'the simplest path is the greatest.'
Main rising wave operation strategy: Once a main rising wave is formed, and there is no obvious increase in trading volume, you should decisively enter. During the phase of rising volume, hold firmly; if there is a decrease in volume but the trend has not been broken, continue to hold; however, when there is a volume increase in a downturn and the trend line is broken, quickly reduce your position to avoid risk.
Short-term stop-loss strategy: After a short-term purchase, if the price does not fluctuate within three days, take the opportunity to sell in a timely manner. If the price drops after your purchase and losses reach 5%, you need to unconditionally stop loss to prevent further losses.
Oversold rebound opportunity: When a cryptocurrency has dropped by 50% from a high and has continuously fallen for 8 days, it has entered an oversold channel, and a rebound may explode at any time, so you can buy in timely.
Only trade leading coins principle: In cryptocurrency investments, you should always adhere to the principle of only trading leading coins and resolutely avoid miscellaneous coins. Because in a rising market, leading coins have the most rapid increases, and in a downturn, they also tend to be more resilient. Do not shy away from buying leading coins simply because their prices are high; trading requires overcoming human weaknesses in many cases. Do not blindly buy just because the price has dropped significantly, nor should you hesitate to buy when the price has risen considerably. Remember, 'the strong will always be strong.' When trading leading coins for short-term operations, the key is to buy at high prices and then sell at even higher prices.
Embrace trend investing: Learn to embrace trends in investing and go with the flow. The buying price is not necessarily better when it is lower; rather, you should seek an appropriate price point. During a downturn, do not think that a cheap buying price gives you an advantage, as it is difficult to determine the bottom in a downtrend. Be decisive in abandoning worthless coins and consider trends as the primary factor in your investments.
Path to sustained profits: Do not let temporary profits cloud your judgment; realize that achieving sustained profits in the cryptocurrency market is the most challenging. After each trade, carefully review and analyze whether the profit was due to luck or your own strength. Only by establishing and stabilizing a trading system that suits you can you achieve sustained profits.
Cautious trading principle: Do not trade blindly for the sake of trading. When you do not have sufficient confidence that a trade will be profitable, do not force a position. Learning to stay out of the market is a profound skill; knowing how to buy is just the beginning, knowing how to sell shows skill, but truly understanding when to stay out is what makes a skilled investor. In trading, the first consideration should be how to preserve capital; the key measure of a trade is not its frequency but its success rate.
Stick to the trading system: In speculative markets, being adaptable is often the wrong approach. You should persist in using your fixed trading system to respond to changes without changing your approach. It's not about trying a thousand methods; it's about using the same method a thousand times. In trading, sometimes 'doing nothing' is actually the best defensive strategy. Many times, when we hesitate and find it hard to let go during trading, we often make the most mistakes, which is a lesson worth deeply understanding.
Balance passion and responsibility: Those who can persist in trading for over four years mostly do so out of a 'passion' for trading. Passion is an essential element for doing something well, but do not become overly obsessed or fall into an inextricable situation. Always remember that family is our primary responsibility that cannot be neglected.
Spirit of self-responsibility: In cryptocurrency investments, adhere to the principle of 'external factors are uncontrollable, seek internally.' You must never blame others for your investment failures. Regardless of the difficulties encountered, you must take full responsibility for your decisions. Only by bravely taking responsibility can you face your mistakes and avoid repeating them. True cryptocurrency investors should be warriors who dare to confront their mistakes.
Independent thinking and judgment: Reduce reliance on external gossip. Because opinions themselves do not have absolute right or wrong; often, the information we see is either what others want us to see or what we subjectively want to hear. When you no longer blindly follow media statements or the methods of so-called experts and begin to have your own independent thinking and judgment, congratulations, you are not far from entering and succeeding in the cryptocurrency market, because at this point you already possess your own investment philosophy and beliefs.
Trading is self-cultivation: We often think that we are facing the ups and downs of the market in trading, but in reality, we are grappling with our own inner selves. Those seemingly glamorous successful investments are all the result of investors' long-term perseverance and patience. Behind every great success lies countless hardships. In cryptocurrency investing, time is the most valuable asset; endurance is far more important than intellect. While talent is certainly important, mindset is the key factor determining success or failure.
The above are my investment secrets accumulated over many years in the cryptocurrency market, shared as if they were martial arts secrets. Whether you can become renowned and gain wealth in this cryptocurrency arena depends entirely on your own efforts and practice.
$BTC