I have a friend who achieved financial freedom through cryptocurrency, and his story is a real-life legend of a comeback. Once an ordinary office worker like us, he now lives a carefree life traveling around the world. This turning point began with a life-changing decision in 2018.
At that time, the cryptocurrency market was in a winter phase, but he focused on the obscure Chainlink (LINK) project. He invested heavily at a unit price of less than $1, enduring a 30% floating loss while holding firm. After two years of waiting, he finally saw an explosion when LINK broke through $30, decisively cashing out with a profit of over $5 million. He then accurately captured the DeFi wave, achieving 5-10 times returns in projects like Uniswap.
Nine Practical Strategies#
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Exit and Observe at 30% Profit
When the account's floating profit exceeds the expected return of 30%, it is recommended to immediately close 50% of the position to lock in profits. Set a dynamic stop profit for the remaining position, reducing 20% for every 10% increase, and avoid greed. -
Activate Circuit Breaker at 10% Loss
If a single trade incurs a loss of 10% of the principal, enter a mandatory 3-day cooling-off period. During this time, review the trading log to check for violations of the established strategy and adjust before re-entering. -
Zero Tolerance for Ambiguous Opportunities
Establish a "three-element" screening mechanism: project white paper + on-chain data + community activity. If any of these do not meet standards, abandon the project. It’s better to miss a hundredfold coin than to make a foolish trade. -
Reverse Thinking on Soaring Coins
For coins that rise more than 30% in 24 hours, use the "Fear and Greed Index" to assist in judgment. When the greed index > 75, automatically add to the observation blacklist. -
Volume-Price Divergence Warning System
Develop a simple monitoring model: when the price hits a new high while trading volume shrinks by more than 15%, trigger a reduction signal. Use the RSI indicator in the overbought zone for double verification. -
Grid Trading to Handle Volatility
Divide funds into 10 parts, adding 1 part for every 5% drop and reducing 1 part for every 8% rise. This is suitable for swing trading of mainstream coins like BTC/ETH. -
Pyramid Adding Rule
Initial position should not exceed 20%, adding 10% for each breakthrough of key resistance levels. Keep total positions within 60%, reserving 40% cash to deal with black swans. -
Create a Custom Trading Model
It is recommended for beginners to start with the "Dual Moving Average Strategy" (e.g., 5-day and 30-day lines), backtesting over 100 times to form muscle memory and reject random trading. -
Weekly Decision System
Establish a "weekly decision system": when the weekly candlestick closes below the MA30 for two consecutive weeks, activate the defensive mode, compressing positions to below 30%.
Practical Tool Library#
- On-chain Monitoring: Axiom Sniping Tool https://axiom.trade
- Smart Copy Trading: GMGN Strategy Platform https://gmgn.ai
- Multi-Account Management: MoreLogin Fingerprint System www.morelogin.com
Newcomer Benefits Channel#
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Further Reading#
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From a Debt of 100,000 to a Comeback with Millions in Assets
High-Frequency Searches: Contract Profit-Taking Strategy|Leverage Risk Control|DeFi Mining Tutorial|NFT Valuation Methods|Web3 Airdrop Guide|Node Staking Returns|Exchange Registration Guide|Cold Wallet Setup|On-chain Data Analysis|Cryptocurrency Tax Planning