I have a friend who achieved financial freedom through cryptocurrency investment, and his experience is legendary, becoming a benchmark of wealth in my social circle. 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 with a desire to explore 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) as 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 extraordinary returns—by 2020, the price of LINK soared to $30, and through a phased profit-taking strategy, this investment brought him nearly $5 million in gains.
During the DeFi boom, he 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, and this experience 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 the Profit#
When gains 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 10% Loss#
Immediately pause trading if consecutive losses reach 10%. Calmly analyze whether it is market volatility or a strategic error, and 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 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 50% Gains#
Be cautious with coins that surge in the short term, as such trends are often accompanied by manipulation. Remember: the faster it rises, the harder it falls. Wait for a second launch opportunity after value returns.
5. Volume-Price Divergence: Beware 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, control FOMO emotions, and it’s 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 "when others are fearful, I am greedy; when others are greedy, I am cautious."
7. Position Management: Gradually Build Positions to Control Risk#
Use a pyramid accumulation method, with initial positions not exceeding 20%. Add 10% to the position for every 10% rise, and immediately stop loss 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 Rule to Avoid Pullbacks#
Do not participate in daily pullback trends before the weekly trend is established. The larger cycle determines direction, while the smaller cycle provides buy and sell points.
These experiences encapsulate lessons learned through real financial investments. 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 blind boxes or Dogecoin gift packs. You can register directly in China: Click here –> 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
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