I have a friend who achieved financial freedom through cryptocurrency, and his story is a real-life legend of a comeback, becoming an inspirational template in my circle of friends. Now he travels the world, and his daily worry is "having too much money to spend"!
Three years ago, he was an ordinary office worker in a cubicle, living a two-point-one-line life with a fixed salary. An accidental industry summit introduced him to blockchain technology. At that time, he couldn't even create a Bitcoin wallet, but with the unique research spirit of a tech guy, he embarked on a journey to explore the crypto world.
His wealth secret came from a precise alternative investment. While everyone was frantically chasing Bitcoin, he heavily invested in Chainlink (LINK) at a price of $0.3 in 2018. This project, which was outside the top 200 in market capitalization at the time, caught his attention for its revolutionary potential in smart contracts through its oracle technology. By studying the project white paper, analyzing the team background, and testing the technical architecture, he was convinced it was a severely undervalued star of tomorrow.
The investment journey was not smooth. After entering the market, he faced a cryptocurrency winter, and his account once shrank by 40%. In the face of market panic selling, he chose to hold firm against the trend. This determination paid off in 2020—when LINK's price broke through the $20 mark, he ultimately achieved a 30-fold return through a phased profit-taking strategy, with a single profit exceeding $5 million.
After that, he continued this investment logic: during the DeFi boom in 2021, he invested in Uniswap (UNI) and Synthetix (SNX), again achieving 5-10 times returns. Of course, there were painful lessons; he once suffered a 40% loss in a single day due to leveraged shorting of Bitcoin. This experience made him completely abandon high-leverage operations and turn to stable value investing.
Now he has achieved financial freedom and said goodbye to the 996 work culture, starting a global travel lifestyle. Here are his nine investment principles, dedicated to you exploring the crypto world:
1. Taking profits is more important than cutting losses#
When profits exceed 50% of expectations, it is advisable to cash out 30% of the principal immediately. Retain the profit account for continued operation, which can lock in gains and avoid black swan risks. Remember: the market is always full of opportunities; what’s lacking is the chips left on the table.
2. Stop and self-check if losses exceed 10%#
If you incur a 10% loss in three consecutive trades, immediately pause all operations. Spend three days reviewing trading records to check whether it was due to market environment changes or strategy errors. Avoid the mindset of "averaging down," as it is like trying to extinguish a fire with gasoline.
3. Never take risks in gray areas#
When facing short-term opportunities with complex news, if there are more than three uncertain factors (project background/technical logic/market sentiment), it is better to miss out than to act. The cryptocurrency market operates 24 hours, and a clear mind is more important than frequent trading.
4. Keep your distance from skyrocketing coins#
Coins that rise more than 30% in a single day are like roller coasters speeding down. Even professional traders find it hard to accurately grasp the peak, and ordinary investors are more likely to become "bag holders." Remember: the surge you see may be a carefully designed selling signal by the market makers.
5. Be wary of massive trading volumes indicating a trend change#
When a coin continuously rises and then experiences a historical high trading volume, it often signals that the main funds are withdrawing. At this time, the RSI indicator is usually overbought, and the MACD shows a bearish divergence. Restrain FOMO emotions and wait for a weekly-level adjustment before considering entry.
6. Buy on divergence, sell on consensus#
Dare to build positions on the left side at the end of a bear market, and seize pullback opportunities in the middle of a bull market. When the market fear index (such as the BTC Fear & Greed Index) is below 20, it is often a golden pit for value coins; when the index breaks above 80, gradually reduce positions to lock in profits.
7. Pyramid-style position building strategy#
The initial position should not exceed 20% of the planned total position, and add 30% for every 10% drop. This counterintuitive operation can effectively average down costs and avoid being trapped by a single heavy position. Remember: the logic for adding positions must be based on fundamental support, not just price fluctuations.
8. Focus on investments within your capability circle#
Establish your own trading model (such as MACD + Bollinger Bands combination) and only act when technical patterns are met. For unfamiliar emerging concepts (like the metaverse/NFT), first test the waters with a 5% position, and gradually increase after validating the logic.
9. Weekly trends determine life and death#
Look at the trend on a monthly basis, but determine buying and selling on a weekly basis. When the weekly candlestick closes below the MA30 for three consecutive weeks, decisively liquidate and observe. The cryptocurrency market is highly volatile; preserving capital is essential to wait for the next cycle's dividends.
These experiences encapsulate lessons learned through real money. There are no perpetual victors in the crypto market; only by strictly adhering to discipline and maintaining learning can one navigate through cycles of bull and bear. Remember: investing is the realization of cognition; you will never earn money beyond your understanding.
OKX Activities This Month#
New users registering on OKX this month can receive a blind box or Dogecoin gift package. You can register directly in China: Click here –> Jump to the official website to register for an OKX account; some regions may require a VPN or alternative link
🔥 Solving Access Issues to OKX Exchange in China#
Many exchanges' original domain names may be blacklisted, or access speed may be affected due to servers being located overseas. For ordinary users, this situation often feels overwhelming, even leading to doubts about whether the exchange itself has issues. In reality, this is more about the network environment rather than a service interruption from the platform itself. To address this, exchanges like OKX and Binance usually update alternative domain names regularly to ensure users can continue accessing the official website through alternative addresses.
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- OKX alternative domain Overseas OKX - requires VPN or alternative link
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- Binance alternative domain Binance
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- Bitget alternative domain Bitget
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- Bybit alternative domain Bybit/Bybitglobal
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- Huobi HTX alternative domain Huobi/HTX
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- Gate.io alternative domain Gate.io
🔥 Related Reading#
🔥 Useful Tools for Alpha Finding#
1️⃣ Axiom Dog Coin Tool https://axiom.trade
2️⃣ Gmgn Dog Coin Tool https://gmgn.ai
3️⃣ dbot Dog Coin Tool https://app.debot.ai
4️⃣ Morelogin Multi-Account Fingerprint Browser www.morelogin.com
Everyone is Searching For#
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