I have a friend who became wealthy through cryptocurrency investment, and his experience is legendary, serving 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 9-to-5 life. By chance, he came into contact with the world of blockchain and cryptocurrencies. At first, he was unfamiliar with this field and even had a vague understanding of mainstream coins like Bitcoin and Ethereum. However, driven by curiosity and a bit of adventurous spirit, he embarked on his "trading" journey.
The turning point in his wealth came from a little-known altcoin. While most people focused on mainstream coins 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, particularly with huge potential in the field of blockchain data on-chain.
Initially, it was not smooth sailing. My friend 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 persevered and did not let short-term fluctuations shake his confidence.
This persistence brought returns far beyond expectations. In 2020, Chainlink surged explosively, with the coin price skyrocketing to over $20. Not only did my friend not sell, but he also gradually increased his holdings. 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 increased by 5-10 times, resulting in substantial overall profits.
Of course, he also faced losses. Early on, when he shorted Bitcoin, he predicted that the price would correct due to excessive gains and used leverage. As a result, the market continued to rise, and his account lost 40% within a few days. This lesson made him deeply aware of the risks of leverage and realize that blindly amplifying funds is extremely dangerous. Since then, he has avoided high-leverage trading and focused more on risk control and fund management.
Now, he has achieved financial freedom, quit his job, and lives an enviable life. He no longer obsessively monitors the market but instead 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 losses exceeding 10%#
Losses are inevitable in investing. However, my friend emphasized that if losses exceed 10% consecutively, it is essential to pause and find the reason. Many people become obsessed with the "comeback" mentality, increasing their positions as they lose, falling into a quagmire. Analyzing calmly during losses is crucial—determine whether it is 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: do not act on unclear opportunities. Such situations are the most likely to result in losses. The market may seem favorable, but if you do not have complete confidence, it is best to wait and see. Investing is not gambling; if uncertain, 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 my friend warns: do not chase coins that have risen over 50%. Although short-term surges attract attention and capital, they are often traps. Buying in can lead to being stuck, and when the bubble bursts, the risk to capital is enormous. It is essential to understand that surges are often accompanied by drops.
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. Newcomers often chase highs after significant increases, resulting in being trapped by the lure of buying. My friend reminds that controlling emotions at this time is crucial. The market is volatile; during high-volume trading at peaks, it is wise to wait and see rather than rush in.
6. Buy low in weak markets and buy on dips in strong markets#
Investment timing is critical. His strategy is to 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 excellent opportunity to position at low 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, my friend says: never increase positions when the situation is unclear or without complete confidence. 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 low levels to lower costs and avoid volatility risks.
8. Operate within familiar patterns#
He particularly reminds: operations must 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 must 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 view short-term pullbacks as entry opportunities, but experience shows that risks during weekly pullbacks are greater, and early involvement can lead to significant 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 foundations of success. Investing is not a game of getting rich overnight but a long-term battle with one's 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 situation often leaves them feeling helpless and even questioning whether the exchange itself has issues. In reality, 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 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#
2025 China's Top Ten Virtual Currency Trading Platforms Latest Rankings Released 🔥【Worth Collecting】
🔥 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
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