Having been in the crypto world for a full ten years, I have experienced three bull-bear cycles. From the initial 50,000 to now having realized 10 million in profits, I would like to share my insights on Cryptocurrency Trading below. Learning this is equivalent to earning.

1. Beware of Bull Market Traps
Hot coins = high-risk area
In a bull market, coins that are crazily FOMOed often have severe control and a huge bubble.
→ Principle: The market maker pulls up the price to attract retail investors to take over; once the funds are withdrawn, the decline far exceeds the market.
→ Strategy: Better to miss out than to chase after popular coins that surge over 50%.
New coin launch immediately with a sickle
The new coins strongly promoted by the exchange often come with the three-act play of "listing - skyrocketing - plummeting."
→ Case: An IEO project on a certain exchange skyrocketed 10 times in 3 days before crashing, with 90% of retail investors trapped.
→ Iron Rule: Observe new coins for 3 months before making decisions to avoid emotional trading.
2. Identify Counterfeit Scams
Shanzhai Coin Harvesting Formula
"Violent washing → Stepwise rising → Skin-changing harvesting" is the standard process.
→ Data: Over 80% of altcoins have a lifespan of less than 1 year, with a zero rate exceeding 95%.
→ Solution: Use only 5% of the position to bet on altcoins, take profits in batches once profitable.
A strong rebound does not equal the greatest potential.
The cryptocurrencies that experience extreme fluctuations are mostly speculative, such as Meme coins which generally retreat by over 80% after a short-term surge.
→ Truth: The volatility of high-quality projects is usually less than 1.5 times the amplitude of the market.
3. Capture Long-term Opportunities
Time Dilution Volatility
Mainstream coins like BTC/ETH have an annualized return of over 200% in 10 years, but one must withstand short-term drawdowns of over 40%.
→ Strategy: Dollar-cost averaging + cold wallet storage, avoid frequent operations.
Potential coins are hidden in obscure areas
Real value projects often experience low trading volumes before their launch, such as C98 which surged 27 times after a bottom consolidation of 11 months.
→ Mining Tips: Pay attention to GitHub code updates, institutional holdings, and other on-chain data.
Bull Market's Second Half Dark Horse
Mainstream Layer 1/Layer 2 projects (such as ATOM/NEAR) that have lagged in the early stage often experience a 3-5 times surge in the late stage of a bull market.
→ Key: Reserve 30% of funds to wait for right-side opportunities.
4. Top Trading Mindset
Anti-humanity training
"Buying the dip and selling the rise" is the norm, and can be automated with grid trading: set to increase positions by 10% on every dip and reduce positions by 20% on every rise.
Signal identification for selling
The coin price rapidly fell back by over 15% after breaking through the previous high, and trading volume continues to shrink → Immediately take profit at 50%.
Consolidation = Accumulation
Coins that experience a narrow range of fluctuations (amplitude <30%) for 3-6 months have a probability of more than 70% to break through resistance levels and explode.
→ Case: After 4 months of SOL sideways movement in 2021, it started a 10x market.
Ultimate Survival Guide
✅ Code of Conduct: Complete research and position building within 24 hours of discovering an opportunity.
✅ Information Leverage: Focus on 5 core data sources (such as CoinGlass Long/Short Ratio, Glassnode On-chain Metrics)
⚠ Risk Red Line: Single coin position ≤20%, never leverage all-in
Remember: In the crypto world, living longer is more important than earning quickly.