I have a friend who became wealthy through cryptocurrency investment. His experience is legendary and serves as a vivid example for those around me. Now, he spends his days traveling and enjoying the "troubles" of endless money.
A few years ago, he was just like us, earning a regular salary and living a nine-to-five life. By chance, he came into contact with the world of blockchain and cryptocurrency. At first, he was unfamiliar with this field and even had a vague understanding of mainstream currencies like Bitcoin and Ethereum. However, driven by curiosity and a bit of adventurous spirit, he embarked on his own "trading" journey.
The turning point in his wealth came from a little-known altcoin. While most people focused on mainstream currencies like Bitcoin and Ethereum, he targeted small coins that the market overlooked, especially some early projects. In 2018, he decisively invested in a coin called Chainlink (LINK), which was priced at less than $1 at the time. Many people did not recognize its value and viewed it as just a small market ripple. However, after in-depth research, he discovered that its technical team and application scenarios were strong, especially with huge potential in the field of blockchain data on-chain.
Initially, it was not smooth sailing. He recalls that shortly after entering the market, cryptocurrencies experienced severe volatility. His account was down nearly 30%, and many panicked and sold off, even "cutting losses" to exit. He hesitated about whether to liquidate, as a 30% loss was significant. Fortunately, he held on and did not let short-term fluctuations shake his confidence.
This persistence brought returns far beyond expectations. In 2020, Chainlink surged explosively, with its price skyrocketing to over $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. A rough estimate shows that this investment alone netted him 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 purchased DeFi project tokens such as Uniswap (UNI) and Synthetix (SNX). These brought considerable returns during the DeFi boom, although not as astonishing as Chainlink, each coin rose by 5-10 times, resulting in substantial overall profits.
Of course, he also experienced losses. Early on, when he shorted Bitcoin, he predicted that the price would correct after a significant rise and 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 leverage and the dangers of blindly amplifying funds. Since then, he has avoided high-leverage trading and focused more on risk control and capital management.
Now, he has achieved financial freedom, quit his job, and lives an enviable life. He no longer obsessively monitors the market but focuses on traveling the world and enjoying life.
Here are some of his experiences that may inspire blockchain explorers.
1. Know when to take profits#
He told me that a key point is to exit promptly when profits exceed expectations and to understand the importance of contentment. Once account profits reach a target, do not be greedy. Exiting at this point to rest or travel can help plan the next investment more calmly. Don’t wait until the market reverses and regret it; market fluctuations are often unpredictable.
2. Reflect on reasons for losses exceeding 10%#
Losses are inevitable in investing. However, my friend emphasized that if losses exceed 10% consecutively, it is essential to pause and identify the reasons. Many people get caught up in the psychology of "recovering" losses, increasing their positions as they lose, and falling into a trap. Analyzing calmly during losses is crucial—determine whether it’s a market change or an operational issue. Adjusting strategies in a timely manner is more important than blindly pushing forward.
3. Avoid unclear opportunities in short-term trading#
In cryptocurrency short-term trading, he advises against taking action during unclear opportunities. Such situations are most prone to losses. The market may seem favorable, but if there is no absolute certainty, it’s best to wait and see. Investing is not gambling; if uncertain, do not act, and be cautious to avoid unnecessary losses.
4. Avoid following coins that have risen over 50%#
There are often coins that surge in the short term, but my friend warns against following coins that have risen over 50%. While short-term surges attract attention and funds, they are often traps. Buying in can lead to being stuck, and after the bubble bursts, the risk to capital is enormous. It’s important to know that rapid rises are often accompanied by rapid falls.
5. Control emotions during high-volume trading at peaks#
Another important lesson: after consecutive rises, do not be tempted by profits during high-volume trading at peaks. New traders often chase after large rises, only to get trapped. My friend reminds that controlling emotions at this time is crucial. The market is highly volatile; during high-volume trading at peaks, it’s better to observe rather than rush in.
6. Buy low during weak markets and buy on dips during strong markets#
Investment timing is key. His strategy is to buy low during weak markets and buy on dips during strong markets. The core is to capture market rhythm rather than emotions. When the market is weak, it can be a good opportunity to position at lower levels, and during strong markets, do not chase highs; wait for dips to act.
7. Do not increase positions without 100% certainty; building positions in batches is safer#
Regarding increasing positions, my friend says: never increase positions when the situation is unclear or without absolute certainty. Increasing positions carries high risks; many blindly increase positions when the market is good, leading to doubled losses when the market reverses. He suggests building positions in batches at lower levels to lower costs and avoid volatility risks.
8. Operate within familiar patterns#
He particularly reminds that operations should be conducted within familiar patterns to earn risk-free money. Before buying coins, there must be a clear strategy and pattern; do not follow trends or make decisions based on feelings. Both technical and fundamental analyses should be based on familiar experiences 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 see short-term pullbacks as entry opportunities, but experience shows that risks during weekly pullbacks are greater, and entering too early can lead to deep losses. The market needs time to correct, and entering too early can lead to being stuck at high levels.
These pieces of advice may seem simple, but they contain years of experience and lessons. For cryptocurrency explorers, calmness, rationality, and discipline are the cornerstones of success. Investing is not a game of getting rich overnight, but a long-term battle with one’s own emotions. Only by controlling desires and maintaining clear judgment can one remain undefeated in an uncertain market.
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
🔥 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 often leaves them feeling helpless and even questioning 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 their 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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- Gate backup domain Gate.io
🔥 Related Reading#
🔥 Useful Tools for Alpha Finding#
1️⃣ Axiom Dog Tool https://axiom.trade
2️⃣ Gmgn Dog Tool https://gmgn.ai
3️⃣ dbot Dog Tool https://app.debot.ai
4️⃣ Morelogin Multi-Account Fingerprint Browser www.morelogin.com
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