8 Valuable Lessons After Nearly 10 Years In The Crypto World

Throughout nearly a decade-long journey closely tied to the cryptocurrency market, I have learned valuable lessons from both successes and failures. Here are 8 key lessons that help me maintain and grow an investment portfolio into eight figures, hopefully providing a profound perspective for other investors.

1. Risk Management with 5-Part Strategy One of the basic but essential principles is risk management. Divide your capital into 5 equal parts and invest only 1/5 in each trade. This means that even if you encounter a series of 5 losing trades, the total capital lost is only about 10% thanks to applying the stop-loss order at 10%. This strategy not only protects capital but also helps you maintain a strong mindset to continue investing.
2. Follow Market Trends Market trends are always the 'best friend' of investors. When the market is trending downward, avoid buying too much - don't get caught up in the 'downtrend'. Conversely, in a rising market, look for strong corrections to enter at a reasonable point. This helps maximize profits and minimize risks when investing in potential currencies.
3. Avoid Short-Term Breakthrough Coins The crypto market always has coins that 'explode' in a moment but often sharply decline shortly thereafter. If a coin spikes and maintains at a high level, the likelihood of a price correction is very significant. Therefore, be cautious and thoroughly research before investing in coins showing rapid growth and lack of stability.
4. Using MACD Indicator for Entry and Exit Trades MACD is a useful technical tool in determining the timing of market entry and exit: Golden Cross below the 0 axis: This is a strong signal indicating a favorable buying opportunity. Dead Cross above the 0 axis: On the contrary, this is a warning sign to sell off or reduce positions. Using MACD helps investors have a more objective view and make decisions based on market data rather than intuition.
5. Never 'Bù Trung' the Position to Lose A common mistake of many individual investors is to continue to “average down” (averaging down) when the position is losing. This is a psychological trap. Instead, increase the position only when the trade is profitable. When facing losses, it is better to accept the predetermined risk and learn from those failures.
6. Observing Trading Volume and Price Action Trading volume and price action provide valuable information about market sentiment: Mild accumulation phase combined with a large volume breakout: This is a strong signal for buying. Accumulation at high prices accompanied by a surge in trading volume: This could be a warning sign indicating the time to consider exiting the position. These indicators help investors position their trades more accurately.
7. Focus on Coins with Upward Trend A simple but effective indicator is to track the moving average (Moving Average): 3-day MA increase: Indicates short-term uptrend.30-day MA increase: Marks medium-term growth.120-day MA increase: Confirms long-term uptrend. In this way, investors can choose coins with stable and sustainable price potential.
8. Continuous Evaluation and Adjustment of Strategy The crypto market is always volatile and constantly changing. Therefore, conducting a weekly investment strategy evaluation is extremely necessary. Through that, you can monitor trends, trading volumes, and technical indicators, thereby adjusting your strategy promptly to fit the market situation. Conclusion To succeed in the crypto market, the key factors are risk control, personal discipline, and closely monitoring market trends. The lessons from 8 years of experience have taught me that only caution and clear strategy help you maintain and increase investment capital in a volatile market environment. Always remember, investment relies not only on luck but also on knowledge, analysis, and patience in each decision.