Hello everyone, I am a professional speculator who has been working in the cryptocurrency circle for many years. Since I entered this world of cryptocurrency full of temptations and challenges in 2020, my initial capital was less than 10,000 yuan. But by virtue of my experience in altcoin investment and contract trading, and after countless market storms, I have achieved a cumulative profit of more than 10,000 times, and have established a firm foothold in the cryptocurrency spot and contract markets. In 2022 alone, I have earned more than 20 million yuan in the market. Although I entered the market in 2020, I really made a lot of money and started my professional cryptocurrency trading career in 2021. In the past four years, I have grown and transformed from an ignorant little leek, and because of this, I am well aware of the confusion and confusion of novices in this market. Today, I am not here to show off my achievements, nor to write about my personal legendary experience, but to record my trading journey truthfully and share the trading philosophy I uphold with everyone, hoping to light a beacon for novice friends in the currency circle, help everyone avoid detours, and embark on the road to financial freedom as soon as possible.
Part 1: Getting Started - Starting with Small Funds and Deciding on Your Attitude
In the mysterious field of the cryptocurrency world, it is not impossible to gradually accumulate from a small amount of funds to tens of millions of yuan, but before you decide to embark on this thorny road, you must have a correct mentality. The cryptocurrency world is by no means a dreamland where people can get rich overnight, but a cruel battlefield that requires continuous learning, endless patience, and rational operations. Many people who are new to the cryptocurrency world often have a beautiful fantasy of getting rich overnight, naively thinking that investing only a few thousand yuan can make millions or even tens of millions of wealth in just a few months. However, this mentality of quick success and instant benefits will only give rise to hasty and reckless operations and blindly follow the trend, and the final outcome can only be ruthlessly eliminated by the market.
Key mindset points:
Stay rational: Do not blindly pursue short-term profits, but be mentally prepared for a long-term struggle and keep your eyes on the long term.
Strengthen risk awareness: No matter how confident you are in your judgment, you must set a stop loss point before placing each order to ensure that you will not be completely swept out of the market due to a single mistake. I believe that many friends have dreamed of getting rich overnight, and I am no exception. But when I suffered a loss for the first time and watched my funds go down the drain, I truly realized that this road to wealth is much more difficult and dangerous than I imagined.
Part 2: Knowledge Arming - In-depth Study to Build a Solid Foundation
In any investment market, knowledge is the magic weapon to defeat the enemy, and in the cryptocurrency circle, in-depth research on the project is even more important. It is important to clearly understand that blindly following the trend will not only cause you to lose money, but also make you miss the real profit opportunity.
Useful research tools:
CoinMarketCap and CoinGecko: With these two tools, you can easily view basic information such as the market value, circulation quantity, trading activity, etc. of various currencies, so as to have a preliminary overall understanding of the currencies.
Messari and Glassnode: They can be used to deeply explore on-chain data, understand the project’s past historical performance and current investment trends in detail, and provide a strong basis for investment decisions.
Project Research Tips:
In-depth analysis of white papers: The white paper of a project is like its soul, a detailed "instruction manual" that shows its vision, technical route planning, and application scenario ideas. A truly high-quality project with potential must have clear and definite application scenarios and the ability to accurately solve industry pain points.
Team strength considerations: The team's technical background and past project experience are key factors in determining the success of a project. Taking Ethereum as an example, the technical team led by its founder Vitalik is strong, which undoubtedly adds unparalleled credibility and appeal to the Ethereum project.
Influence of investment institutions: If a project can gain the favor and support of top investment institutions, it often means that the project has strong potential for sustainable development. For example, projects invested by a16z usually attract much attention in the market and attract the attention of many investors.
Community and development vitality assessment: A project that is optimistic about the long-term and has strong vitality must have an active and large developer community and continuous technical updates and iterations. We can use the GitHub platform to check the frequency of project code updates and the enthusiasm of developers to judge the development potential of the project.
Part 3: Trading strategies - precise attack and clever layout
Trading strategy is undoubtedly the core essence of the entire investment guide. How to make the right decision at the right time directly determines the success or failure of your cryptocurrency investment journey. The reason why many people suffer losses is often because they blindly chase high prices or miss the perfect entry opportunity.
Strategy 1: Enter the market in batches to spread the risk
Given the drastic volatility of the cryptocurrency market, if you want to accurately capture good opportunities, building positions in batches is undoubtedly the most sensible strategic choice. You must not invest all your funds in a single project at once, but should gradually penetrate the market in stages and steps.
Initial position planning: When you first open a position, it is recommended to invest up to 20% - 30% of your total planned position. This will ensure that you have sufficient liquidity so that you have the capital and confidence to increase your position when the market falls back.
Grasp the opportunity to increase positions: skillfully use technical analysis tools such as K-line charts and RSI, and pay close attention to market dynamics. When the market shows a correction or sideways trend, decisively carry out a second increase in positions to dilute costs and expand profit margins.
Key points for strict risk control: For every investment, be sure to always set a stop loss point to ensure that when the market fluctuates violently, you will not suffer unbearable losses due to momentary negligence.
Strategy 2: Go with the flow and grasp the trend
In a bull market, following the trend is the key to profitability. Through technical analysis, accurately identify the rebound signals of certain currencies at important support levels. At the same time, pay close attention to the market sentiment of the project, such as using indicators such as Google Trends and social media discussion heat. When a currency begins to attract a lot of attention and discussion, it is very likely that its upside space will be greatly opened, and this is a good time to enter the market.
Part 4: The Art of Taking Profits - Stop at the Right Time to Lock in Profits
In the field of cryptocurrency investment, the most common taboo is not knowing how to stop profit in time. When many people see their funds rising, they are always greedy and want to wait for "higher prices". However, the market is unpredictable. Once the market turns around, the huge profits accumulated with great effort will vanish in an instant.
Exquisite profit-taking strategy:
Take profit in batches: Similar to the strategy of opening positions in batches, you should also adopt the strategy of selling in batches when taking profit. When the project you invested in reaches the expected profit target, you can sell 50% of your positions first, and keep some positions to continue to wait and see the market dynamics, so as to obtain more profits when the market continues to improve, or exit in time when the market reverses.
Reasonable goal setting: According to the long-term development potential of the project and the current overall market environment, scientifically and reasonably set the profit target, and do not be blinded by short-term profits. For example, when the project's increase reaches 3 times or 5 times, you can consider partial profit-taking operations to lock in profits.
Avoid the FOMO trap: The cryptocurrency market fluctuates constantly, and you can’t accurately catch every rising trend. Therefore, after making a profit-taking plan, you must strictly implement it. Don’t easily change your established decision because of the short-term fluctuations in the market, so as not to fall into a vicious cycle of chasing ups and downs.
Part 5: Risk Defense - Prepare for a rainy day and protect your wealth
Risk management plays an indispensable role in any investment strategy system. No matter how optimistic you are about a project, you must always maintain a high level of risk awareness. Especially for small investors, a failed investment may mean a complete exit and a loss of all your money.
Key defensive tips:
Reasonable position control: Never bet all your funds on one project. A more prudent approach is to invest no more than 20% of the total funds in a single project. This can effectively spread the risk and avoid the tragic outcome of losing everything due to the failure of one project.
Decisive stop loss execution: When the market changes unfavorably and the price trend goes against expectations, you must decisively stop loss. For example, once the price falls below the support line you set in advance, you should sell it immediately without hesitation. Even if you are in a loss state at this time, you must not be lucky in the decline and hope for a market reversal, otherwise it will only further increase the loss.
Risk hedging mechanism: You can hedge risks by holding stablecoins (such as USDT) or investing in a multi-project portfolio to reduce losses caused by the failure of a single project. For example, while investing in high-risk and high-return projects, you can allocate a certain proportion of stablecoins or relatively stable projects to balance the risk-return ratio of the investment portfolio.
Conclusion: Continue to improve, move forward steadily, and move towards the other side of wealth
The cryptocurrency world is by no means a place where you can succeed by luck alone, but a battlefield where you can gain a foothold by relying on rigorous strategic planning, rich knowledge reserves and sufficient patience. By using correct and reasonable trading strategies, such as building positions in batches and taking profits in time, coupled with effective risk management measures, you are fully capable of achieving the grand goal of starting with small funds and gradually moving towards wealth freedom in the cryptocurrency world.
Please remember that the key to successful investing is not to pursue profitability in every transaction, but to learn valuable lessons from failures and be fully prepared for the next market opportunity. Success comes from continuous learning, flexible strategy adjustment and unwavering execution. The world of cryptocurrency is full of unlimited opportunities and possibilities, but also full of traps and crises. Only those investors who truly understand in-depth market analysis, precise risk control and always insist on learning and improving themselves can stand firm in this ever-changing and fast-growing market and win the game.
Finally, I would like to share with you some valuable advice I have gained from working in the cryptocurrency industry for many years:
Opportunities for wealth require patience and waiting. Only by being calm can you hear the footsteps of wealth approaching quietly.
For investors, the most important thing is to accurately grasp the opportunities that belong to them, and they must not blindly follow the trend and chase market conditions that do not belong to them.
Having the fortitude to remain unmoved by external temptations is an essential quality for investors. They should not be tempted by opportunities that do not belong to them, nor should they be disturbed by opportunities that are difficult to control.
During the investment process, it is important to identify the investment direction, but it is more critical to know how much to bet based on your own judgment. Reasonable position control is one of the key elements to success.
Almost no one can make a huge fortune in the cryptocurrency circle simply by predicting the short-term rise and fall of the coin price. If there is such a person, he would have become the richest man in the world long ago. Therefore, don't trust those who claim to be able to accurately predict the short-term coin price trend. Even if you are lucky enough to make a profit occasionally, in the long run, you will often end up in failure.
When the capital loss is serious, it is difficult to keep a calm and stable mentality. Therefore, in order to have a good investment mentality, you must first ensure that you will not suffer a major loss. Steady investment operations are the cornerstone of a good mentality.
The cryptocurrency market is unpredictable and difficult to predict accurately. The main purpose of our market research is to seize continuous opportunities and avoid continuous risks. For those sudden and accidental price fluctuations, there is no need to be too entangled in self-blame, maintain a calm mind, and never give up on yourself.
When making investment decisions, even if you choose to wait and see and not enter the market, you must never make wrong decisions that are completely contrary to the market trend, otherwise you will fall into an irretrievable situation.
Don't be driven by the urgency of making money and act blindly. Avoid forcing yourself to make frequent and hasty investment decisions without any preparation. The right way is to think carefully and make plans before taking action.
During the investment process, we must focus on events with a high probability of occurring, while also being vigilant against the huge risks that may be caused by events with a low probability, so as to plan ahead and be prepared for any eventuality.
As the saying goes, it takes three years to get into the industry, five years to get acquainted with it, and ten years to become the best. Trading is not a shortcut to get rich overnight, but a pursuit of reasonable and stable profits that can achieve long-term, continuous, and high-probability profits, so that you can accumulate wealth continuously. Professionalism creates value, and details dominate success or failure. If you feel confused and helpless in cryptocurrency trading, I hope my sharing can bring you some inspiration and help, and illuminate your way forward in the cryptocurrency circle.
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