I have a friend who achieved financial freedom through cryptocurrency investment, and his experience is legendary, becoming a benchmark of wealth in my circle of friends. Now he travels the world every day, experiencing an alternative worry of "money anxiety"~
Three years ago, he was just an ordinary office worker like us, living a daily routine of work. By chance, he came into contact with blockchain technology, which opened the door to a new world. At that time, he couldn't even distinguish between Bitcoin and Ethereum, but with a curiosity for new things and a moderate spirit of adventure, he resolutely embarked on the journey of digital asset investment.
The turning point in his life came from a little-known token project at the time. In 2018, when the market's attention was focused on mainstream coins, he discovered Chainlink (LINK), a potential stock. At that time, LINK was priced at less than $1, and most people had no understanding of its technological value. Through in-depth research, he discovered the project's groundbreaking innovation in the blockchain oracle field and decisively invested heavily.
The initial investment period was not smooth sailing. He recalled, "I encountered the cryptocurrency winter as soon as I entered the market, with a 30% floating loss in my account." Faced with the market's panic selling, he withstood the pressure and chose to hold on. This persistence ultimately yielded excess returns—by 2020, LINK's price soared to $30, and through a phased profit-taking strategy, this investment brought him nearly $5 million in profit.
During the DeFi boom, he accurately positioned himself again with protocol tokens like Uniswap (UNI) and Synthetix (SNX), achieving 5-10 times returns. Of course, there were painful lessons: he once suffered a 40% loss of principal due to leveraged shorting of Bitcoin, and this experience made him completely abandon high-risk operations and establish a strict risk control system.
Now that he has achieved financial freedom, he has summarized nine investment iron rules:
1. Profit-taking Wisdom: Take profits when they exceed expectations#
When profits exceed expectations, cash out immediately. Avoid greed; preserving profits is more important than pursuing higher returns. It is advisable to take a break and observe after making a profit to avoid emotional trading.
2. Stop-loss Discipline: Review after a 10% loss#
Immediately pause trading after a consecutive 10% loss. Calmly analyze whether it is market volatility or a strategic error; avoid revenge trading. Establish a trading log to record the gains and losses of each operation.
3. Ambiguous Opportunities: Better to miss than to make a mistake#
In short-term trading, resolutely observe uncertain market conditions. The market is never short of opportunities, but ambiguous areas often hide traps. Maintain the restraint of "if I don't understand, I won't act."
4. Surge Trap: Don't chase after a 50% increase#
Be cautious with coins that surge in the short term, as these trends often come with manipulation. Remember: the faster it rises, the harder it falls. Wait for a second launch opportunity after value returns.
5. Volume-Price Divergence: Be cautious of high volume at high levels#
A significant volume of transactions after consecutive rises is often a signal for major players to offload. At this time, remain rational and control FOMO emotions; it is better to miss the top profits.
6. Cycle Rhythm: Accumulate in weak markets, wait for pullbacks in strong markets#
In bear markets, gradually build positions in quality assets; in bull markets, wait for pullbacks to enter. Grasp the contrarian thinking of "when others are fearful, I am greedy; when others are greedy, I am cautious."
7. Position Management: Build positions in batches to control risk#
Use a pyramid adding method, with an initial position not exceeding 20%. Add 10% of the position for every 10% rise, and stop loss immediately for a 5% drop.
8. Pattern Trading: Only trade familiar patterns#
Establish your own trading system and focus on areas of expertise. Whether it's a MACD golden cross or RSI oversold, only operate on validated effective models.
9. Trend Judgment: Weekly charts are king to avoid pullbacks#
Do not participate in daily pullback trends before the weekly trend is established. The larger cycle determines the direction, while the smaller cycle provides buy and sell points.
These experiences encapsulate lessons learned through hard-earned money. The cryptocurrency market is full of opportunities and risks; only by strictly adhering to discipline, controlling emotions, and continuously learning can one navigate steadily through the wave of digital assets.
OKX Activities This Month#
New users registering on OKX this month can receive a blind box or Dogecoin gift pack. You can register directly in China: Click here to go to the official website to register an OKX account; some regions may require a VPN or alternative link
🔥🔥🔥 Alpha Find Gold Dog Practical Tools#
1️⃣ Axiom Dog Boosting Tool https://axiom.trade
2️⃣ Gmgn Dog Boosting Tool https://gmgn.ai
3️⃣ dbot Dog Boosting Tool https://app.debot.ai
4️⃣ Morelogin Multi-Account Fingerprint Browser www.morelogin.com
Related Reading#
Everyone is Searching For#
Buying Bitcoin in China, trading exchanges, losing money in trading, downloading and registering OKX, depositing on OKX in China, registering on Binance App, downloading Binance App, tutorial for buying coins on Binance platform, registering on Binance, registering for airdrops on Binance, downloading Binance on Apple, how to buy President Coin, how to buy Dogecoin, buying Bitcoin with RMB, how to download OKX, web3 airdrops, web3 zero airdrops, downloading and registering Bitget in mainland China, registering for OKX with a passport, downloading OKX, downloading Binance, trading as a side job, OKX contracts, how to recharge RMB on OKX, how to recharge on OKX, how to set up an NFT wallet, how to recharge RMB on Huobi, beginner's tutorial in the coin circle, btc8848.com, Tony's principles for trading contracts, contract leverage bit wave, DeFi mining, making money in the coin circle, can airdrops still be played in the coin circle, what to do if a contract is liquidated, how to buy President Coin on OKX and Binance, how to buy Ethereum on OKX and Binance, how to play DeFi staking and mining, can NFTs still be played, how to play web3 airdrops, how to play zero airdrops in the coin circle, how to mine inscriptions, how to mine runes, beginners in the coin circle, losing money in trading coins, can trading coins make money, beginner's tutorial in the coin circle on btc8848.com, can trading coins make money, what is contract leverage, DeFi mining, how to play making money in the coin circle, OKX airdrops, node staking, liquidation, financial freedom, night investment heiyetouzi.xyz