Do you remember that late night three years ago when I stared at the remaining three-digit balance on my phone screen, my hands shaking? Back then, I jumped into the crypto market with a principal of 5,000 yuan, not even understanding the difference between "mainstream" and "niche" assets. I followed the "big shots" in the community chasing the skyrocketing anonymous altcoins and clung to the fantasy of "buying the dip" when a well-known project crashed, ultimately watching my tens of thousands in principal shrink to just a fraction. During those days, I truly understood: the crypto market has never been a place to pick up money, but a sieve that filters out the greedy and leaves behind the survivors who understand the rules.
I have been doing cryptanalysis for many years, transforming from a "retail investor" who chases trends to a trader who can achieve stable profits. Today, I share the experiences gained from real investments, each accompanied by the warmth of lessons learned.
1. The safety of the principal is always 1; profits are the zeros that follow.
The most common mistake for beginners is turning "wanting to make money" into "gambling to break even." I have set three strict rules for myself, and I won't budge no matter who advises me otherwise.
Only use "spare money" to enter: After deducting living expenses from income, invest no more than 10% of the remaining amount. For example, if the monthly salary is 8,000, invest a maximum of 800 each month. Even if you lose it all, it won't affect your mortgage, car loan, or meals, allowing for a stable mindset.
Set a "stop-loss line": For short-term trades, exit if the price drops below the 5-day moving average; if a mid-term position breaks below the 20-day moving average, exit decisively. Don't think "I'll wait a bit; it might rebound"—the market won't turn back because of your reluctance.
Position sizing is like "deploying troops": Allocate 30% to long-term holdings of major assets, 50% for swing trading to capture opportunities, and keep 20% as backup funds for unexpected market movements. Never put all your eggs in one basket.
2. Going with the trend is 100 times more reliable than the "bottom-fishing technique."
In my early years, I was always obsessed with "bottom-fishing," thinking, "It has dropped so much, it must be at the bottom." However, I ended up buying at the halfway point every time. It was only later that I realized: market trends are more important than your judgment.
In a downtrend, no matter how low the price, it could go lower; don’t blindly catch falling knives. In an uptrend, buying during a pullback is safer than chasing highs. Trading volume is the "touchstone" of trends—an increase in volume at low levels indicates funds entering the market, which is high in credibility; price increases without volume are like castles in the air, ready to collapse at any time.
3. Don't be greedy with technical indicators; mastering 3 is enough.
Many beginners start by learning a dozen or twenty indicators, resulting in confusion. I have simplified it to just three:
Finding buy and sell points with 15-minute candlesticks: Short-term trading relies on capturing entry timing, with higher precision.
Daily MACD sets the direction: Red bars expanding and a golden cross signal a clear upward trend; green bars expanding and a death cross warrant decisive avoidance.
Weekly Bollinger Bands indicate support: The lower band is a strong support level, the upper band is a resistance level; combine with trading volume to assess the validity of breakouts.
These three indicators resonate together, combined with increased trading volume, can raise the success rate of entry to over 70%. When trading short-term, remember: take profits at 15% or cut losses at 5%. Focus on the average price line on a 1-3 minute chart, avoiding greed or unnecessary battles.
4. Use tools wisely to avoid 3 years of detours.
Professional traders understand the power of tools. Here are 4 that I use every day:
Market analysis: Use TradingView to draw support and resistance levels; the trend is clear at a glance.
Macroeconomic information: Jin10 data monitors important policies and economic data to predict market sentiment in advance.
On-chain data: Glassnode checks fund movements to see if the main players are entering or exiting the market.
Risk avoidance: TokenSniffer screens niche asset risks, helping to avoid scams.
Lastly, let me say something from the heart.
There is no "easy money" in the crypto market; discipline is more important than skills, and staying alive is more crucial than making money. If you want to turn a few thousand into something more, spend 3 months improving your understanding; don’t treat trading like gambling. Most people are trapped in the cycle of "chasing highs - getting trapped - cutting losses - chasing highs" not due to lack of effort, but because no one has illuminated the core logic for them.
