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In the crypto world, the most outrageous thing is the wealth gap. Some people start with a hundred thousand in capital and grow it to a 50 million fortune in a few years; others make a profit once, only to lose it all again. Why such a big difference?
An experienced investor who has been in the industry for many years once said something that struck me: the essence of the crypto circle is a game of the masses, and those who control their emotions always win.
In simple terms, skills and luck are less important than having a stable mindset. Get the right attitude, follow a solid strategy, and the market becomes just a cash machine.
So, how exactly to do it? Here are some practical experiences:
**Don’t go all-in right from the start**
Thinking you can hit it big immediately when you see a hot trend is a mistake. Testing the waters is necessary—enter with small amounts to observe market reactions, then gradually increase your position. Being impatient only increases the risk of losses.
**Consolidation phases are actually opportunities**
Many dislike sideways movement, thinking there’s no trend. But on the contrary, during consolidation, it’s easiest to identify support and resistance levels. When prices are low and sideways, take moderate positions; when prices repeatedly hit new highs, consider exiting decisively. Before the market shows a clear direction, this phase is the best time to accumulate positions at the lowest cost.
**There’s a rhythm to rises and falls**
Sell when prices peak, buy when they plunge, and watch during sideways movement. It sounds simple, but executing it requires discipline. Many fail because they’re afraid of missing out during rises or of further losses during drops. The pros profit from this timing gap.
**Timing of buy and sell must be clear**
Contrarian thinking is crucial—be cautious when others are greedy, act when others are panicking. Don’t chase the highs or sell at the lows—that’s the fastest way to lose money. Buy during dips in the morning, sell during rallies in the morning. These seemingly simple actions are backed by an understanding of market rhythm.
**Risk management is the key to survival**
Full positions are basically gambling. Enter in stages, set stop-losses, and take profits to exit proactively. Keep a clear head and always know your risk exposure—that’s the secret to long-term survival.
These principles are easy to state but require experiencing many losses and moments of self-doubt to truly understand. Calmness and patience are not innate; they are learned through the market. Opportunities in the crypto world are always present; the key is whether you can wait for that moment.