If you want to make money trading coins, you only need to do one thing: don't be greedy and maintain a calm mindset.
I believe that in the crypto world, wanting to make money and not being greedy will certainly allow you to earn money. If you are very greedy, most people will lose a lot of money, while a small portion will make big money.
Why do I say this? Because the crypto world has already become relatively mature, and the more mature the market, the fewer opportunities for rapid wealth.
First of all, if you are not greedy, making money is a very simple thing. In the long run, cryptocurrencies are gradually developing. In a gradually developing industry, it is certainly possible to gain some wealth.
At the very least, you can dollar-cost average into BTC. In the long run, dollar-cost averaging into BTC is definitely a good investment strategy.
Secondly, if you are very greedy, you are likely to lose a lot of money, and there is a small chance you might make big money. If you pursue excess returns and want tenfold or hundredfold returns, it is very likely you will end up losing everything. Take the bull market of 2023-2024 as an example; many people did not buy Bitcoin but wanted to buy altcoins to chase higher returns, but now their returns have not outperformed Bitcoin. Bitcoin has risen from 20,000 to 70,000 from 2023 to now, tripling or quadrupling, while many new investors wanting to buy lower market cap altcoins have not seen higher gains than Bitcoin and have even lost money. In short, if you are an ordinary person, if you do not understand blockchain technology, and if your understanding of wealth is insufficient, then as long as you are 'not greedy' in the crypto world, you can definitely earn some small money through investment. These small amounts cannot elevate you to the wealth class, but they are enough to improve your living standards.
Of course, if you are not satisfied with the returns from dollar-cost averaging BTC, then you might as well look at the content below.
In the crypto world, achieving financial freedom and class leap, I have always strictly followed the iron laws of the market:
1. A sharp decline is a touchstone for quality coins. If the market crashes and your coin only drops slightly, it is obvious that the big players are protecting it and refusing to let it fall, so such a coin can be safely held; there will be gains.
2. If newcomers do not know how to buy and sell, the simplest and most direct method is to hold above the 5-day moving average for the short term, and sell if it breaks below the 5-day line. For the medium term, hold above the 20-day moving average, and exit if it breaks below the 20-day line. There are many methods; the one that suits you is the best. The difficulty in trading is not the absence of methods, but the execution. Mindlessly sticking to one method, over 90% of people have no problem; the path to success is simple.
3. Once the main rising wave forms and there is no obvious increase in volume, decisively intervene; if the volume increases and the price rises, hold your position; if the volume decreases and the downtrend is not broken, hold your position; if the volume increases and the price breaks the trend, quickly reduce your position.
4. If there is no fluctuation three days after a short-term purchase, you can sell if possible. If the price drops instead of rising after purchase, unconditionally stop-loss at a 5% loss.
5. If a coin drops 50% from a high position and continues to fall for 8 days, it has entered an oversold channel, and a rebound is imminent, you can follow in.
6. When trading coins, you should trade the leading coins, only do the leading ones, and avoid miscellaneous ones, because when the leading coins rise the most, they fall the hardest. Don't be afraid to get in; trading coins is often contrary to human nature. Don't buy just because it has fallen a lot, and don’t avoid buying when it has risen a lot. The more you dare not buy, the more it rises; the more you dare to buy, the more it falls. The strong remain strong; when trading the leading coins, the most important thing for short-term trading is to buy at high positions and sell at even higher positions!
7. Embrace the trend and go with the flow; the buying price is not about being lower but about being more suitable. You will not gain an advantage just because the buying price is cheap, as falling prices do not indicate a bottom. Abandon worthless coins; the trend is king.
8. Do not let the thrill of profits cloud your judgment; understand that the hardest thing in the world is how to sustain profits. You must seriously review whether it is luck or skill; a stable trading system suitable for you is the key to continuous profits.
9. Don’t trade just for the sake of trading. What does that mean? It means that when you do not have enough confidence that this trade will be profitable, do not force yourself to open a position. Being in cash is a skill; those who can buy are apprentices, those who can sell are masters, and those who can stay in cash are the grandmasters. The first consideration in trading is not profit, but capital preservation; trading is not about frequency, but about success rate!
10. In the speculative market, being adaptable is the most wrong approach. Use your fixed trading system; in the trading system, remain unchanged in the face of change. It’s not that you can use ten thousand methods, but you are afraid to use one method ten thousand times. Staying still is the best defense; often the times when you are most reluctant to part with something are when you make the most mistakes. Remember this!
11. I believe that those who can persist in trading for more than four years are all because of the word 'love.' Love is possible; to do something well, love is a must. But don’t become overly obsessed, even to the point of sinking into it and unable to extricate yourself; family is our greatest responsibility.
12. External factors are uncontrollable; seek within yourself. You must never blame your failures on others; this is incredibly important. Regardless of how far you fall, you must take full responsibility for your decisions. Only by taking responsibility can you face mistakes and avoid repeating them; true traders are warriors who dare to confront their errors!
13. Listen less to outside rumors, as opinions have no right or wrong; many times what you can see is what they want you to see, or these words are what you want to hear. When you lose interest in the media or any expert's methods, congratulations, you are not far from getting started and succeeding, because you may have gained a bit of your own, belief!
14. You think you are trading the market, but in fact, you are trading yourself. The shiny success we see on the surface is all a result and performance; behind success are immense perseverance and endurance. Behind greatness is suffering; time is the most valuable asset, endurance surpasses intelligence, talent is not important, but mindset is very important!
The secret of martial arts has already been given to you all; whether you can become famous in the world depends on yourself.
