Experiencing three bull and bear cycles, 23 insights from 7 years of trading experience

Author: Ronin, Cryptocurrency Researcher

Compiled by: Felix, PANews

Cryptocurrency researcher Ronin has experienced three bull and bear cycles, suffering significant losses and making substantial profits. His account has experienced drawdowns of up to 97%, but currently has an overall return of approximately 300%. Below are 23 trading insights he has shared over the past 7 years.

1. Investing profits into higher-risk projects does not equate to actual profits

If you have made some money, it's best to buy more Bitcoin, Ethereum, and place these funds in stable positions, awaiting future opportunities.

Recently, there have been many messages like this: "I went all in on some terrible meme coins, what should I do next?"

Avoid making any high-risk trades. These investments are unlikely to change anything.

2. Do Your Own Research (DYOR) for every piece of advice seen on Twitter

You may have seen many tweets like the following:
● Cost: $0
● Returns: $1 million
● "Ahead of everyone else"

Or promises of achieving 100x growth within a few months. In reality, these are just fictional stories. Only pay attention to developments that are worth your attention and conduct in-depth analysis.

3. Position yourself early

When you feel FOMO (fear of missing out), it likely means you are already too late. If everyone is talking about it, in 90% of cases, you should give up and focus on other things.

4. Keep records

Regardless of whether you are participating in airdrops, an active spot trader, or any other role, you should keep records of every trade. You cannot remember everything.

It is recommended to create your own Telegram channel and turn it into a diary.

5. If you lose, keep moving forward

As mentioned earlier, the author lost everything twice in his life, leaving only less than $500. Instead of complaining about the fairness of fate, the author created twice as much within a year.

Failure makes you stronger and a better version of yourself. All you need to do is stand up and set new goals for yourself.

6. Quality over quantity for tools

"I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times." - Bruce Lee

You do not need to use too many tools, the following tools are sufficient:
● DefiLlama
● Arkham
● DeBank
● Etherscan

7. Do not waste attention

You do not have much energy and capital, so do not spend it on any cryptocurrency events. If you plan to consider and try to recover funds from events related to LUNA or FTX, you will miss out on more opportunities. Look ahead.

8. Utilize portfolio to increase returns, diversify investments to retain profits

Diversification can almost eliminate the risk of your investments. No risk = conservative profits (1.3x) or retaining your profits.

Throughout the trading journey, it is important to use balance effectively, which has the potential to achieve 5-10x returns.

9. It is impossible to increase the value of your portfolio by 100x through trading

Do you really believe you can hold SOL from the beginning to its current price without selling? This is a very wrong view because no one knows what the price will be tomorrow. In fact, even the founders do not know.

Simply aim for conservative profits and through good risk management, you can achieve 5-10x returns.

10. Walk alongside the unknown, but do not become a part of the unknown

If you want to stay ahead, you must test assumptions. If you have some understanding of a project or narrative and see the potential for incredible results, then verify it.

But do not get too involved because no one can guarantee that you are right.

11. The public prefers new projects and narratives, be smarter

12. The best projects combine fundamentals and basic elements

Every great project must have a community. Without people, a project cannot exist. Of course, it should have strong fundamentals, such as:
● Team
● Product
● Tokenomics
● Future plans
● Strong partnerships
● Active social media presence

13. Establish your own investment system and follow it

Develop your own investment strategy, and even if it may not yield any results, stick to it. Remember that a strategy can be favorable or unfavorable. Therefore, you need to constantly adjust the system to adapt to trends.

14. Control your focus

There are over 50 profitable narratives in the cryptocurrency field, but remember the golden rule: the 10,000-hour rule to become an expert. It is best to choose 2-3 areas and become an expert in those fields. If you choose any field and focus on it, you will eventually become a master in that field and will definitely become wealthy.

15. Do not underestimate fundamentals in a bull market

16. Control losses

This is similar to setting stop losses in popular tokens, NFTs/collectibles, and anything else. Decide when to sell. Sometimes you may fall into FOMO, but you will become wealthier.

17. Cryptocurrency food chain

Builders > VC/Insiders > Whales > Bots > Early receivers of information (1 minute) > Late receivers of information (> 1 minute)

By the time everyone is promoting it on Twitter, it's too late to join.

18. Avoid projects with fanatics

Projects like Aevo, which had many supporters at the time, ultimately only achieved 2-5x returns. They are not worth paying attention to, leave these projects to those willing to do anything for them.

19. Do not stay in the cryptocurrency field when drunk, tired, or sick

Once, the author got drunk at a party and impulsively invested $40,000 ($400 for the party, $39,600 was scammed).

20. Stablecoins are not stable

There are numerous unstable stablecoins, such as UST. Or after the FTX event, USDC also became unpegged from the US dollar.

Therefore, try to diversify assets into BTC and ETH (after ETF, they will become more stable assets).

21. Do not limit yourself to airdrops

Many people do not read anything about cryptocurrencies and do not want to delve into understanding. They make a critical mistake because only with more knowledge can you find more ways to make money.

22. Macro awareness is underrated

Pay attention to what is happening around you. For example, if there is a crisis in the United States, you must understand that cryptocurrencies will react quickly.

Both markets are manipulated by the same players and usually have the same reactions.

23. Right or wrong does not matter

Just do what you have to do and then analyze the results. No one knows what is right.

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