Three years ago, I jumped into the cryptocurrency world with 6000 U for stock, hoping to earn a little more for snacks and drinks for my family's small supermarket. What happened? I invested in Web3 concept coins right after a five-day surge, only to see a 21% drop that same day, wiping out my funds; holding onto BCH for a rebound, I missed Bitcoin doubling, and could only stomp my feet in regret at the supermarket cash register.
In recent years, I've both lost and gained, and I've summarized one iron rule: the cryptocurrency world is not short of opportunities, but short of people who can survive. Today, I want to share with you how to use the pragmatic thinking of a 'small supermarket owner' to avoid unnecessary detours in the crypto space.
1. Position management: Calculate like purchasing goods
"Chip theory": Don’t put all your funds into one box of goods
The first mistake I made was to go all in, resulting in a crash when it fell. Now? I divide the funds into ten parts, investing only one part each time, just like stocking a supermarket: chips, drinks, and candies are stored separately; if one doesn't sell well, I won't lose everything.
Averaging down should be like "stocking up on discounted goods"
Last year, AVAX fell for nine consecutive days; I averaged down in three batches and directly recovered after the rebound. The key point: buy in batches during a downturn; don’t try to catch the bottom all at once—this is akin to stocking up on paper towels during supermarket sales; reducing costs is essential to withstand volatility.
2. Operating rhythm: Move when the timing is right
Must reduce positions after two consecutive rises
Greed is a knife for cutting losses! Last time AXS rose for three days and I didn't sell; on the fourth day, it retraced 14%, directly swallowing my profits. Now my rule is: if any coin rises for two consecutive days, sell at least one-third to lock in profits to sleep soundly.
Be patient and wait for a pullback, don’t chase highs
I never chase BTC when it surges; I wait for it to pull back to the 20-day line to enter. It's like customers rushing to buy limited products; impulsive following can lead to overpaying, while staying calm can bring surprises.
3. Trend is king: Following the trend will not lead you astray
Only invest in coins that are trending upward
I have a simple judgment: play short-term when the 3-day line goes up, hold mid-term when the 30-day line goes up. Last year, when ETH's 80-day line strengthened, I held on and made a profit from idle funds—trends are your friends; don’t fall in love with declining coins.
The relationship between price and volume is a barometer
A low-volume breakout (like MATIC surging from $0.8 to $1.3) is an opportunity; a high-volume stagnation (like BNB consolidating at $350) is a danger signal. This is like a supermarket monitoring sales: a sudden spike in orders requires restocking, while poor sales necessitate quick promotions.
4. Psychological game: You can only win by combating human nature
Reject the 'break-even mentality'
When losing money, I always want to increase leverage to turn around, but it only results in greater losses. I’ve now set a strict rule: if a single loss exceeds 10%, I stop loss, just like expired food must be taken off the shelves; hesitation will only lead to greater losses.
Don’t be swayed by others' profits
Seeing others flaunt screenshots of wealth can easily shake your strategy. But the coin circle is like drinking water—some get rich with MEME coins, while others grow wealthy by holding Bitcoin; finding a rhythm that suits you is more important than following the crowd.
5. Honest words for beginners
The coin circle is not a casino, it’s a training ground
There is a real opportunity here, but there are more traps. Seven associations have recently issued a joint warning: virtual currencies are not legally protected, and air coins and Ponzi schemes are rampant—don't touch projects you don't understand.
Use spare money, ensure living expenses
I will always remember the pain of losing $6000 in funds. Now I only use 20% of supermarket profits to play in the coin circle; safety of principal is essential for longevity.
The last honest word
There are no myths in the coin circle, only ordinary people who survive. Those flaunting luxury cars and mansions may not tell you how many times they have blown up their accounts; while those of us doing small business understand the importance of stability—after all, if you lose money in trade, you can't even afford chips, and that’s the most real lesson.
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