Time flies, and I have been struggling in the cryptocurrency world for 10 years. Looking back, it has been a long journey filled with ups and downs.
In the first 3 years of entering the market, I stepped into this mysterious and alluring field with 20,000 as my capital, full of hope. However, reality dealt me a heavy blow. Due to a lack of experience, blindly following trends, and ignorance of the market, my funds quickly vanished like flowing water, leaving me with only 1,000. During that time, the cold mockery of relatives and friends stung like needles. They said I was wasting my time and joking with my family's future, and various hurtful comments were incessant. I fell into deep self-doubt, tossing and turning countless nights, nearly giving up completely. But deep inside, there was always a flame of unwillingness burning. How could I be defeated like this? So, I gritted my teeth and vowed to my family to bet once more with that last 1,000.
In the following days, I was like a wanderer groping in the dark, calming my mind to study hard. I crazily learned various blockchain knowledge, studied the technical white papers of different currencies, analyzed historical market trends, participated in various online and offline seminars, and discussed experiences with various cryptocurrency people. Hard work pays off; in the next 3 years, with my gradually accumulated experience and keen market insight, I turned that 1,000 into 10 million. This was not due to luck, but the harvest after countless days and nights of hard work.
In my 10 years in the cryptocurrency world, I have deeply realized the different realms of trading cryptocurrencies:
First level: When I first entered the cryptocurrency market, like most people, my heart was full of hope and passion, thinking I was about to open the door to wealth. Even with just a little capital, I seemed to see infinite possibilities for the future, believing that with my intelligence, I could carve out a place in the crypto world.
Second level: I became obsessed with frequent trading, staring at market fluctuations every day, treating every word from influential figures as scripture, blindly following their advice for buying and selling, completely losing my independent thinking.
Third level: After some time of trading, I found that making money was not easy, and losing more than gaining became the norm. The words of influential figures were no longer so effective. I began to try to learn to analyze news, paying attention to various news and policy dynamics, but later found that many messages were meant to mislead investors, leading me to doubt value investing and fall into confusion.
Fourth level: Gradually, I grew from a novice to a so-called 'leek,' starting to study currencies in depth, learning various technical indicators such as moving averages, KDJ, etc., trying to predict market trends through technical analysis. Although I occasionally made small profits, more often I still faced losses. My short-term and long-term trading was chaotic, and the more I traded, the less capital I had, and my self-doubt grew stronger.
Fifth level: From a new leek to an old leek, I gained a certain understanding and cognition of the market, but also fell into new dilemmas. I often felt that no matter what I did, I was wrong. Every decision felt like gambling, and my mindset gradually collapsed, as if I had fallen into an inescapable vicious circle.
Sixth level: After extensive practical trading, constantly summarizing experiences and lessons, I finally explored a trading model suitable for myself. I no longer blindly followed trends and could trade based on my judgment, starting to achieve a shift from making more profits to incurring fewer losses. My mindset gradually gained control, no longer suffering from anxiety as before.
Seventh level: At this stage, I was no longer limited to technical indicator analysis, but paid more attention to the market's 'momentum,' rhythm, and the emotional changes of investors. I could keenly sense the market atmosphere, grasping market trends from a macro perspective, gradually forming my unique trading 'way.'
Eighth level: I had a mature and stable trading model and strict discipline, able to trade with coins in hand and no coins in mind, unaffected by short-term price fluctuations. Regardless of market ups and downs, I could maintain calmness and make decisive entry and exit decisions, truly reaching a state of tranquility and composure.
Ninth level: I was no longer confused by the ups and downs of the cryptocurrency market, viewing it as an ordinary investment venue, maintaining a calm and rational mindset. I began to study the narrative logic and philosophical thoughts behind investments, understanding that investing is not just about making money, but also about gaining insights and understanding about life and the world, where the principles of investment and life intertwine at this moment.
Tenth level: I currently consider myself at this level, having stepped out of the limitations of the traditional secondary market and begun to venture into the primary market. By thoroughly researching the background of projects, team strengths, market prospects, and other factors, I have begun to lay the groundwork for some potentially promising projects, such as those that combine emerging technological concepts and strong community-driven forces. I aim to make investments with a more forward-looking and strategic perspective to achieve richer returns.
In this long 10-year journey of ups and downs, I have come from the difficult start with an initial capital of 20,000 to now being able to achieve financial freedom in the cryptocurrency world and support my family. I have experienced countless setbacks and challenges. Here, I want to share the valuable experiences I have accumulated over the years with friends who are also struggling in the cryptocurrency world, hoping to illuminate your path forward.
Firstly, capital management is the cornerstone of investment success. I always adhere to the principle of diversified investment, reasonably dividing funds into multiple portions, and only investing a small percentage of funds in each trade. This way, even if there is a misjudgment in a certain trade, it will not cause a devastating blow to the overall capital, thus preserving the capital for a comeback. At the same time, it is essential to strictly set stop-loss points. Once the market trend reaches the stop-loss line, do not hesitate; exit decisively. This stable and conservative capital management strategy has allowed me to remain calm during numerous market fluctuations, effectively avoiding falling into deep traps.
Secondly, going with the trend is the core essence of trading in the cryptocurrency world. The cryptocurrency market is unpredictable, with trends like surging waves; going with the trend leads to prosperity, while going against it leads to ruin. In a downtrend, seemingly attractive rebounds are often traps, a means for major players to lure in buyers and sell; while in an uptrend, every pullback may be a rare buying opportunity. Therefore, we must learn to accurately judge market trends and avoid blindly operating against the trend. Only by following the market can we capture more profit opportunities and achieve stable asset growth.
Thirdly, for cryptocurrencies that experience short-term surges, we must maintain high vigilance at all times. Such cryptocurrencies usually carry extremely high risks, with price fluctuations akin to a runaway wild horse, difficult to predict. Once we miss the best buying opportunity and recklessly chase higher prices, it is easy to fall into the trap of being stuck at high positions, with dire consequences. Conversely, we should focus on cryptocurrencies that have stable upward potential. These cryptocurrencies may not bring the excitement of overnight wealth, but with solid project foundations, good market reputations, and stable development trends, they can provide investors with more reliable long-term returns, helping us steadily advance on our investment journey.
Fourthly, effectively using technical indicators for decision support. Classic technical indicators such as MACD and price-volume relationships are my reliable assistants during trading. They are like market pulse monitors, helping us better grasp the rhythm of market changes and accurately capture the best entry and exit times. However, it is important to clarify that technical indicators are not a universal magic wand; we should not rely on them excessively, but instead combine them with other analysis methods to make comprehensive judgments about market trends, thus making wiser and more rational investment decisions.
Fifthly, adhering to post-trade reviews is a key aspect of improving trading skills. After each trading day, it is essential to take time to comprehensively summarize and reflect on the day's trades. Reviewing every decision and action taken during the trading process, analyzing the reasons for success and failure, and extracting valuable experiences and lessons from them to continuously optimize and adjust one's trading strategy. Through daily reviews, we can gradually deepen our understanding and grasp of market rules, continuously improve our trading system, and achieve better results in cryptocurrency investments.
Lastly, and most importantly, blindly following trends in cryptocurrency trading is a mistake to avoid. Everyone's investment background, risk tolerance, investment goals, and trading experience vary, so each person should explore and form a unique trading style and rhythm suitable for themselves through practice. Do not blindly imitate others' trading strategies, as methods that suit others may not suit you. Only by finding a trading approach that truly aligns with your own characteristics can you stand firm in the fiercely competitive and unpredictable cryptocurrency market, achieving long-term stable profits.
My 10 years in cryptocurrency trading have deeply taught me that trading cryptocurrencies is by no means a simple speculative game, but a profound contest of skills and wisdom, as well as a severe test of mentality and perseverance. In this field full of opportunities and challenges, only by maintaining a calm and rational mind and adhering to stable and reasonable operations can we go further and more steadily on the long journey in the cryptocurrency world. I hope my experiences can benefit my friends, helping you encounter fewer obstacles and more confidence and composure on your investment journey.
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