I have a friend who achieved financial freedom through cryptocurrency trading. His experience is legendary and serves as a real-life example for me. Now, he spends his days traveling and enjoying the trouble of having endless money.
A few years ago, he was just like us, earning a regular salary and living a 9-to-5 life. By chance, he came into contact with the world of blockchain and cryptocurrencies. At first, he was not familiar with this field and had a vague understanding of mainstream coins like Bitcoin and Ethereum. However, driven by curiosity and a bit of adventurous spirit, he embarked on the path of "trading cryptocurrencies."
The turning point in his wealth accumulation came from an obscure altcoin. At that time, most people were focused on mainstream coins like Bitcoin and Ethereum, but he targeted lesser-known small coins in the market, especially early-stage projects. In 2018, he decisively bought a coin called Chainlink (LINK) when its price was less than $1. Many people did not understand this coin at all and thought it was just a small ripple in the cryptocurrency market, not worth paying attention to. However, after conducting in-depth research, he discovered that the technical team and application scenarios behind it were very strong, especially with great potential in blockchain data on-chain technology.
Initially, his journey was not smooth sailing. Friends recall that shortly after he entered the market, the cryptocurrency market experienced significant volatility. His account once showed a paper loss of nearly 30%, and many people panicked and sold off, even "cutting losses" to exit. He also hesitated about whether to continue holding or liquidate, as a 30% loss is considerable. Fortunately, he persevered and did not waver in his confidence due to short-term fluctuations.
This persistence brought returns far beyond expectations. In 2020, Chainlink skyrocketed, with its price climbing above $20. Not only did he not sell, but he also increased his holdings in batches. When the price broke through $30, he chose to cash out. Rough estimates suggest that from this investment in Chainlink alone, he netted nearly $5 million. From a cost of less than $1 to a return of over 30 times, this small coin became a springboard for his wealth.
In addition to Chainlink, he also invested in other coins. For example, at the beginning of 2021, he entered the market to purchase tokens from DeFi projects like Uniswap (UNI) and Synthetix (SNX). These projects also brought considerable returns during the DeFi boom, although not as astonishing as Chainlink, each coin increased by 5-10 times, resulting in substantial overall profits.
Of course, he also experienced losses. He admitted that in early investments, he shorted Bitcoin, believing that its rise was too high and would correct, so he used leverage. As a result, the market continued to rise, and his account lost 40% in just a few days. This lesson made him deeply aware of the risks of leveraged trading and the dangers of blindly amplifying capital. Since then, he has stopped engaging in high-leverage trading and focused more on risk control and capital management.
Today, he has achieved financial freedom, quit his job, and lives an enviable life. He no longer obsessively monitors the market but instead invests his energy in global travel and enjoying life.
Here are some of his experiences that may inspire those exploring the blockchain world.
1. Know when to take profits#
He told me that the key is to exit in a timely manner after making significant profits and to understand the importance of being content. When account profits exceed expectations, one must avoid greed. Exiting at this point to rest or travel can help you plan your next investment more calmly. Don't wait until the market reverses to regret it, as market fluctuations can often be unexpected.
2. Reflect on losses exceeding 10%#
Losses are inevitable in investing, but he emphasized that if consecutive losses exceed 10%, one must pause and find the reason. Many people become obsessed with "making back losses," increasing their positions as they lose, resulting in deeper pitfalls. When losing, calmly analyze whether it is a market change or an operational issue; adjusting strategies in a timely manner is more important than recklessness.
3. Avoid unclear opportunities in short-term trading#
In cryptocurrency short-term trading, he advises: if the opportunity is unclear, do not act hastily. Such moments are the easiest to incur losses. The market may seem favorable, but if you do not have full confidence, it is best to wait and observe. Investing is not gambling; if you are unclear, do not act, and cautiously avoid unnecessary losses.
4. Do not chase coins that have risen over 50%#
There are often coins that surge in the short term, but he warns: do not chase coins that have risen over 50%. Although short-term surges attract attention and funds, they are often traps. Buying can easily lead to being stuck, and once the bubble bursts, the risk to capital is enormous. A surge is often followed by a sharp decline.
5. Control emotions during high-volume trading at peaks#
Another important lesson is: after consecutive rises, do not be tempted by profits at high volumes. Newcomers often chase highs and end up getting trapped. He reminds that controlling emotions at this time is crucial. The market is volatile, and during high-volume trading at peaks, it is best to observe rather than rush in.
6. Buy low in weak markets and buy on dips in strong markets#
A sense of timing in investing is crucial. His strategy is: buy low in weak markets and buy on dips in strong markets. The core is to grasp market rhythm rather than emotions. When the market is weak, it is an opportunity to position at lower levels; when the market is strong, do not chase highs, but wait for dips to act.
7. Do not increase positions without 100% confidence; building positions in batches is safer#
Regarding increasing positions, he said: do not increase positions when the situation is unclear or without 100% confidence. Increasing positions carries high risks; many blindly increase positions when the market is favorable, doubling losses when the market reverses. He suggests building positions in batches at lower levels, which is more prudent, as it can lower costs and avoid volatility risks.
8. Operate within familiar patterns#
He particularly reminds: operations should be conducted within familiar patterns to earn risk-free money. Before buying coins, there must be a clear strategy and pattern, rather than following trends or relying on feelings. Whether through technical analysis or fundamental analysis, it must be based on familiar experience to maintain safety in an uncertain market.
9. Do not easily participate in weekly pullback trades#
Lastly, he repeatedly emphasizes: do not easily participate in trades during weekly pullbacks. Investors often view short-term pullbacks as entry opportunities, but his experience shows that the risks of weekly pullbacks are greater, and entering too early may lead to deep losses. The market needs time to correct, and entering too early can easily result in being stuck at high levels.
These pieces of advice may seem simple, but each contains years of his experience and lessons. For those exploring the cryptocurrency market, calmness, rationality, and discipline are the foundations of success. Investing in cryptocurrencies is not a game of getting rich overnight, but a long-term battle with emotions. Only by controlling desires and maintaining clear judgment can one remain undefeated in this uncertain market.
OKX Activities This Month#
New users registering on OKX this month can receive blind boxes or Dogecoin gift packs. In China, you can register directly: Click here to register for an OKX account on the official website, 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 leaves them feeling helpless, even doubting whether the exchange itself has issues. In fact, this is more due to the network environment rather than a service interruption on the platform itself. To address this, exchanges like OKX and Binance typically update backup domain names regularly to ensure users can continue accessing the official website through alternative addresses.
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- OKX backup domain Overseas OKX - requires VPN or alternative link
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- Binance backup domain Binance
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- Bitget backup domain Bitget
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- Bybit backup domain Bybit/Bybitglobal
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- Huobi HTX backup domain Huobi/HTX
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- Gate.io backup domain Gate.io
🔥 Related Reading#
🔥 Useful Tools for Alpha Seeking#
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
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