An anonymous cryptocurrency trader turned an $8,000 investment into an incredible $3 million thanks to these principles.
He said that there are 15 golden rules that he always follows to achieve this success.
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How Cyclop turned $8,000 into $3 million
Bitcoin completed its fourth halving on Friday. Historically, halving events have triggered an epic bull market. Therefore, Cyclop says that understanding and applying these rules can mean significant gains rather than missed opportunities.
If we look at the price increases of 2016 and 2020, the main growth occurred after the halving. Now is the last chance to enter the market.
Cyclops wrote .
Here are Cyclop's 15 golden rules:
- Fixed profits: Cyclop emphasizes the importance of taking profits promptly. He advises traders to convert part of their profits to stablecoins or fiat money. That's one of the ways to protect profits.
- Stay focused: He suggests focusing on a few select projects. In fact, spreading yourself across multiple projects can dilute efforts and reduce profits.
- Follow market stories: Cyclop points out that success often follows market stories. Getting in early on trending topics like artificial intelligence (AI) or real-world assets ( RWA )… will yield better results.
- Skepticism is key: In an environment rife with pitfalls, he encourages crypto traders to verify all information independently.
- Reduce tool usage: Cyclop uses no more than 5 essential tools, such as Etherscan and DeFiLama . This approach keeps his trading efficient and simple.
- Expand your sources of information: He recommends branching out beyond Twitter to platforms like Discord and YouTube. This diversification can significantly broaden one's trading perspective.
- Understand the basics: Basic knowledge is very important. Jumping into cryptocurrency trading without a solid foundation is risky and unwise.
- Wise risk management: Recognizing and managing risk is important, especially in a bull market. The right strategy can pave the way for sustainable success.
- Manage your trades: Placing stop losses and stop losses early is essential to prevent small setbacks from becoming major collapses.
- Store transaction logs: Cyclop keeps a daily log of its cryptocurrency activities. This habit helps him track progress and refine strategies.
- Ignoring excessive complexity in bull markets: He notes that growth is driven by hype rather than logic in price increases. Understanding this can prevent wrong decisions.
- Questions about stablecoin safety: He warns that stablecoins are not always as secure as they appear, referring to the collapse of TerraUSD (UST).
- Portfolio management: Focusing your investments on a few areas can grow a small portfolio quickly. On the contrary, diversification is better to maintain a larger portfolio.
- XEM relative profits and losses: He XEM profits and losses as a percentage of his total portfolio. This approach really helps maintain emotional control and make clear decisions.
- Persistence pays off: Finally, Cyclop emphasizes the importance of perseverance. The current market offers many opportunities for those willing to work diligently.
By adhering to these rules, Cyclop has navigated the volatile cryptocurrency market. As the market moves into the post-halving phase, his insights are especially relevant, providing traders with a methodical framework to take advantage of upcoming opportunities.
