I have a friend who achieved financial freedom through cryptocurrency investment, and his experience is legendary, becoming a benchmark for 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 commuting between home and 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 driven by a desire to explore new things and a moderate risk-taking spirit, he resolutely embarked on the journey of digital asset investment.
The turning point in his life came from a then-little-known token project. 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 phase of investment was not smooth sailing. He recalled, "I encountered the cryptocurrency winter right after entering the market, with a 30% unrealized loss in my account." Faced with panic selling in the market, he chose to hold firm under pressure. This persistence ultimately yielded substantial returns—by 2020, LINK's price soared to $30, and through a strategy of taking profits in batches, this investment brought him nearly $5 million in gains.
During the DeFi boom, he again accurately positioned himself in protocols 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, which led him to 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 Profit When It's Good#
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. Loss-cutting Discipline: Review After a 10% Loss#
Immediately pause trading after a consecutive loss of 10%. 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 Err#
In short-term trading, resolutely wait and see in uncertain markets. The market is never short of opportunities, but ambiguous areas often hide traps. Maintain the restraint of "if I don't understand it, I won't do it."
4. Surge Trap: Don't Chase After a 50% Increase#
Be cautious with coins that surge in the short term, as these trends are often manipulated by whales. 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 Prices#
A significant increase in trading volume after consecutive price rises is often a signal for major players to offload. At this time, remain rational and control FOMO emotions; it is better to miss out on top profits.
6. Cycle Rhythm: Accumulate in Bear Markets, Wait for Pullbacks in Bull Markets#
In bear markets, gradually build positions in quality assets; in bull markets, wait for pullbacks to enter. Grasp the counter-cyclical thinking of "be greedy when others are fearful, be cautious when others are greedy."
7. Position Management: Gradually Build Positions to Control Risk#
Use a pyramid accumulation method, with an initial position not exceeding 20%. Add 10% to the position for every 10% increase, and cut losses 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 verified effective models.
9. Trend Judgment: Weekly Charts Rule to Avoid Pullbacks#
Do not participate in daily pullback trends until the weekly trend is established. The larger cycle determines the direction, while the smaller cycle provides buy and sell points.
These experiences are lessons learned through real money. The cryptocurrency market is full of opportunities and risks; only by strictly adhering to discipline, controlling emotions, and continuously learning can one navigate the waves of digital assets steadily.
OKX Activities This Month#
New users who register on OKX this month can receive a blind box or Dogecoin gift pack. In China, you can register directly: Click here–>Go to the official website to register an OKX account, some regions may require a VPN or Alternative link
🔥🔥🔥 Alpha Finds Useful 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
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