A guide for small funds in the crypto space to reach tens of millions: A detailed explanation of core strategies from entry to doubling.
Part One: Starting Point—Begin with small funds and prepare your mindset.
In the crypto space, starting with small funds and earning tens of millions is not impossible, but before you decide to embark on this path, you must clarify your mindset. If you want to succeed,
First, you must understand—investing in the crypto space is not a game for getting rich overnight; it is a battlefield that requires continuous learning, patient waiting, and rational operations.
Many people enter the crypto space with fantasies of getting rich, thinking they can invest a few thousand and earn millions in just a few months. However, this mentality often leads to hasty operations, blindly following trends, and ultimately being eliminated by the market.
Mindset anchor:
1. Stay rational: Do not pursue short-term profits and 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 that you will not be wiped out by a single failure. Have you ever fantasized about getting rich overnight? I have too, but when I lost my first sum of money, I realized that this path is much more difficult than I imagined.
Part Two: In-depth learning and research, laying a solid foundation.
In any investment market, knowledge is the weapon for victory, and in the crypto space, project research is the most critical link. You need to know that blindly following trends can lead to losses and can make you miss genuine opportunities.
Research tools:
CoinMarketCap and CoinGecko: Used to view basic information such as a cryptocurrency's market capitalization, circulation, and trading volume.
Messari and Glassnode: Used to view on-chain data, historical performance of projects, and investment trends.
How to research a project:
1. White paper analysis: A project's white paper is its 'manual' for vision, technical roadmap, and application scenarios. A good project must have clear landing scenarios and the ability to solve industry pain points.
2. Team background: The team's technical background and past project experience are crucial. For example, Ethereum's founder Vitalik's technical team 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 are usually well-recognized.
4. Community and development activity: A project that is optimistic in the long term 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 Strategies—Precise position building and reasonable layout.
Trading strategies are the core of the entire operation manual. How to make the right decisions at the right time is crucial to determining your success or failure. Many people incur losses often because they chase high prices or miss the right entry opportunities.
Strategy 1: Build positions in batches to avoid risks.
The market is highly volatile; to seize good opportunities, building positions in batches is the best strategy. Do not invest all your funds in a single project at once; rather, 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 positions when the market pulls back.
Timing for increasing positions: Use technical analysis tools (such as candlestick charts, RSI, etc.) to add positions during market pullbacks or consolidations.
Risk control: For every investment, always set a stop-loss point to ensure that you will not incur huge losses due to market volatility.
Strategy 2: Follow the trend and go with the flow.
In a bull market, following the trend 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 particular cryptocurrency starts to attract a lot of attention, it may mean that its upward potential has been opened up.
Part Four: Timing—When to act, when to take profits.
In the crypto space, the most taboo thing is not knowing when to take profits.
Many people watch their funds rise, but always hope to wait for a 'higher' point, resulting in!
Once the market reverses, previous gains can evaporate instantly.
Profit-taking strategy:
1. Take profits in batches: Like building positions, profits should also be taken in batches. You can sell 50% of your holdings when your expected target is reached, while keeping some positions to continue observing.
2. Daily target setting: Set profit-taking targets based on the project's long-term potential and market environment, and do not seek short-term profits. For example, when a project's increase reaches 3 or 5 times, you can consider taking some profits.
Avoid FOMO:
The market will have ups and downs; you cannot catch every rise. Therefore, after establishing 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 essential part of any investment strategy. No matter how optimistic you are about a project, always maintain a sense of risk awareness. Especially for investors with small funds, a single failure may mean total exit.
Core defensive strategies:
1. Control your position: Never bet all your funds on one project; it is recommended that the investment in a single project should not exceed 20% of your 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 false hopes during a downturn.
3. Risk hedging: You can hedge risks by holding stablecoins (like USDT) or investing in multiple projects to reduce the losses from a single project's failure.
Conclusion: Keep learning, proceed steadily, and achieve your wealth goals.
Investing in the crypto space is never a game of luck, but rather one of strategy, knowledge, and patience. Through the right trading strategies, position building in batches, timely profit-taking, and effective risk management, you can achieve the leap from small funds to financial freedom in the crypto space.
Remember, 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 cryptocurrency is full of opportunities but also full of traps. Only those who truly understand market analysis, risk control, and persist in learning can stand undefeated in this rapidly changing market.
Finally, let me share some advice in the crypto space:
1. Opportunities come to those who wait; patience is required to hear the voice of wealth.
2. For investors, the most important thing is to seize opportunities that belong to you.
3. Do not be tempted by opportunities that do not belong to you, and do not be disoriented by opportunities that you cannot grasp; this is a discipline that investors must possess.
4. It's important to have the right investment perspective, but it's even more important to determine how much to invest after getting it right.
5. Very few people can make a lot of money in the crypto space by predicting short-term price fluctuations; otherwise, they would be the world's richest. If not, it means they only report good news without reporting bad news. Even if luck is on their side for a moment, they will ultimately face failure.
6. When money is lost too much, whose mindset can still be good? A good mindset is built on not losing too much.
7. The world is unpredictable, and the market is hard to gauge. Studying the market is mainly to seize continuous opportunities and avoid continuous risks. Sudden price increases or decreases that you cannot grasp or avoid are not your fault; keep a calm mindset and do not give up on yourself.
8. You can choose not to act, but you cannot completely go against the overall direction.
9. Do not be rushed by the urgency of making money, and do not force yourself to make hasty decisions frequently.
10. Focus on high-probability events while guarding against the major risks that low-probability events may cause.
Three years to enter the industry, five years to understand it, ten years to become a king.
Trading is not about getting rich overnight; it is about reasonable profits that can be long-lasting, stable, sustainable, and have a high probability of success, allowing you to continuously acquire wealth.
Professionals create value, and details decide success or failure.