Let me introduce myself briefly. I entered the cryptocurrency industry in 2016 with an initial capital of less than 10,000 yuan. I made a lot of money through copycat and contract trading.
Dao, after several ups and downs, has made a cumulative profit of more than 10,000 times so far. He has become a professional speculator in the cryptocurrency spot and contract markets, and made a profit of more than 20 million in the market in 2019 alone.
Although I joined in 2016, I only started to make real profits in 2019 as a professional cryptocurrency trader. In the past five years or so, I have grown from a non-vegetarian to a big investor.
Therefore, I understand the hearts of the young leeks best. Today I am here to share useful information with you, not to show off or write a personal biography, but to record my personal trading experience and share trading concepts. I hope to teach people how to fish, so that the young non-investors in the cryptocurrency circle can truly avoid detours and achieve financial freedom as soon as possible.
A guide to raising small funds to tens of millions: a detailed explanation of the core strategies from entry to doubling
Part 1: Starting point - start with a small amount of capital and be mentally prepared
In the cryptocurrency world, it is not impossible to start with a small amount of capital and make tens of millions, but before you decide to embark on this path, you must have a clear mindset.
First of all, you need to understand that Erquan is not a game of getting rich overnight, but a battlefield that requires continuous learning, patient waiting, and rational operation.
Many people enter the circle with the fantasy of getting rich quickly, thinking that they can invest a few thousand yuan and then make millions or tens of millions in just a few months. However, this mentality often leads to hasty operations, blindly following the trend, and eventually being eliminated by the market.
Mindset Anchor:
1. Stay rational: do not pursue short-term profits and be prepared for a long-term battle.
2. Risk awareness: No matter how confident you are, you must set a stop loss point before each order to ensure that you will not be eliminated by the market due to one failure. Have you ever fantasized about getting rich overnight? In fact, I did so, but when I lost my first money, I realized that this road is much more difficult than I thought.
Part II: In-depth study and research to lay a solid foundation
In any investment market, knowledge is the weapon of victory, and in the cryptocurrency world, project research is the most critical link. You need to know that blindly following the trend will not only lead to losses, but also make you miss real opportunities.
Research Tools:
CoinMarketCap and CoinGecko: used to view basic information such as market value, circulation, and transaction volume of a currency.
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: The white paper of a project is the "instruction manual" of its vision, technical route, and application scenarios. A good project must have a clear landing scenario and the ability to solve industry pain points.
2. Team background: The team’s technical background and previous project experience are crucial. For example, the technical team of Ethereum founder Vitalik directly added huge credibility to the project.
3. Investment institutions: The support of top investment institutions often means the sustainability of the project. For example, projects invested by a16z usually attract much attention.
4. Community and development activity: A long-term promising project must have a strong developer community and active technical updates. You can check the frequency of code updates and developer participation through GitHub.
Part 3: Trading strategy - accurate position building and reasonable layout
The order strategy is the core of the entire operation manual. How to make the right decision at the right time is the key to your success or failure. The reason why many people lose money is often because they chase high prices or miss the right entry opportunity.
Strategy 1: Build positions in batches to avoid risks
The market is very volatile, and if you want to seize good opportunities, it is best to build positions in batches. Don't invest all your funds in a project at once, but enter the market slowly in stages.
Initial position: When you first open a position, invest at most 20%-30% of your total planned position. Maintain sufficient liquidity and add positions when the market pulls back.
Time to add positions: Use technical analysis tools (such as candlestick charts, RSI, etc.) to add positions for the second time when the market experiences a correction or sideways movement.
Risk control: For every investment, always set a stop loss point to ensure that you will not suffer huge losses due to drastic market fluctuations.
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 that are planted 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 coin starts to attract a lot of attention, it may mean that its upside space has opened up.
Part 4: Timing - When to strike and when to take profit
The most taboo thing in circle investment is not knowing how to stop profit.
Many people see their funds rising, but they always want to wait until it goes "higher".
Once the market reverses, previous profits will evaporate in an instant.
Take Profit Strategy:
1. Take profit in batches: Just like opening a position, you also need to sell in batches when taking profit. When you reach your expected goal, you can sell 50% of your positions and keep some positions to continue to wait and see.
2. Daily target setting: Set a profit target based on the long-term potential of the project and the market environment, and don’t be greedy for short-term profits. For example, when the project increases by 3 or 5 times, you can consider partial profit taking.
Avoid FOMO:
The market will have ups and downs, and you can't catch every uptrend. Therefore, after making a profit-taking plan, you must strictly implement it and don't change your decision because of short-term market fluctuations.
Part 5: Risk Management and Defensive Strategies - Always Prepare for the Worst
Risk management is an integral part of any investment strategy. No matter how optimistic you are about a project, you should always be aware of the risks. Especially for investors with small funds, one failure may mean the end of the game.
Core defensive strategy:
1. Control your position: Never bet all your funds on one project. It is recommended that the investment in one project should not exceed 20% of the total funds.
2. Stop loss in time: When the market changes unfavorably, stop loss decisively. For example, if the price of the currency falls below the support line you set, sell it immediately, even if you leave the market at a loss, and don't be lucky during the decline.
3. Risk hedging: You can hedge risks by holding stablecoins (such as USDT) or investing in a multi-project portfolio to reduce losses from the failure of a single project.
Conclusion: Keep learning, take steady steps, and achieve your wealth goals
The cryptocurrency world is never a game of luck, but a game of strategy, knowledge and patience. Through the correct order-making strategy, building positions in batches, taking profits in time, and effective risk management, you can completely achieve the leap from small capital to wealth freedom in the cryptocurrency world.
Remember, the most important thing is not to succeed every time, but to learn from your failures and be fully prepared when the next market opportunity comes.
Success lies in continuous learning, adjustment and execution. The world of stocks is full of opportunities, but also full of traps. Only those who truly understand how to analyze the market, control risks and persist in learning can remain invincible in this fast-changing market.
Finally, I would like to share some advice on the cryptocurrency world:
1. Opportunities come by waiting, and only with patience can you hear the voice of wealth.
2. For investors, the most important thing is to seize their own opportunities.
3. Investors must have the determination not to be tempted by opportunities that do not belong to them, and not to be confused by opportunities that they cannot grasp.
4. It is important to make the right investment decision, but it is more important to know how big to bet after making the right decision.
5. Few people can make a lot of money in the cryptocurrency circle by predicting short-term price fluctuations. Otherwise, they would be the richest man in the world. If not, it means that they only report good news and not bad news. Even if they are lucky for a while, they will eventually fail miserably.
6. After losing a lot of money, who can have a good attitude? A good attitude is based on not losing too much.
7. The world is unpredictable, and the market is unpredictable. The main purpose of studying the market is to seize continuous opportunities and avoid continuous risks. If you don't have time to seize or avoid sudden and occasional rises or falls, it's not your fault. You should keep a calm mind and don't give up on yourself.
8. You can choose not to do it, but you can’t go in the opposite direction
9. Don’t be driven by the urgency of making money, and don’t force yourself to make hasty decisions.
10. Pay attention to high-probability events, while guarding against major risks that may be caused by low-probability events.
Three years to enter the industry, five years to master the industry, ten years to become the best
Trading is not about getting rich overnight, but about making reasonable profits that are long-term, stable, sustainable, and with a high probability, so that you can obtain wealth continuously.
Professionalism creates value and details determine success or failure.
If you feel helpless or confused when trading in the cryptocurrency world, I hope my sharing can bring you some inspiration and help!
If you are still feeling lost and don’t know where to start in this market, please comment 333 and get on board!
