I have a friend who achieved financial freedom by playing with Link coins who told me this.

I have a friend who achieved financial freedom through cryptocurrency assets, and his experience can be described as a contemporary investment legend. This former ordinary office worker has now achieved financial independence and lives an enviable nomadic lifestyle. His wealth journey began in 2018 with a precise investment in Chainlink (LINK), when the token price was still under $1.

This friend's investment journey is quite enlightening: during the turbulent cryptocurrency market from 2018 to 2020, he adhered to the value investment philosophy even when facing a 30% account loss. When LINK broke through $30 in 2020, he realized over 30 times returns through a phased cash-out strategy, earning nearly $5 million from this single investment. Later, during the DeFi boom, his investments in projects like Uniswap (UNI) again yielded 5-10 times returns.

Nine Core Investment Principles#

Taking profits is key to preserving gains
When investment returns exceed expectations, it is advisable to withdraw more than 50% of the principal and observe the market. Market fluctuations are unpredictable, and timely profit-taking can avoid over 80% of drawdown risks.
Losses exceeding 10% must trigger a review
If there are consecutive losses, trading should be immediately paused, and trading logs analyzed: is it due to market environment changes (60% of cases) or strategy errors (35% of cases)? Avoid falling into the "revenge trading" trap.
Vague opportunities should be decisively abandoned
In short-term trading, maintain a zero-tolerance attitude towards investment targets with unclear information. Statistics show that the loss probability for such operations is as high as 72%.
Reverse thinking for surging coins
Be cautious of coins that surge over 30% in a single day or over 50% in a week. Historical data indicates that such assets average a 45% drawdown in the following 30 days.
Volume-price divergence warning mechanism
When a coin's price reaches a new high accompanied by a decrease in trading volume (volume-price divergence), immediately initiate risk control, as the probability of market reversal increases to 68%.
Cyclical rotation operation strategy
In bear markets, use a grid trading method (adding 5% position for every 10% drop), and in bull markets, use Fibonacci retracement levels (38.2%, 50%, 61.8%) for phased position building.
Pyramid position addition model
Initial positions should not exceed 30% of the target position, and add 20% for each confirmed trend signal. Ensure that the holding cost remains below the market average price.
Systematic trading model
Establish a three-dimensional analysis system that includes technical indicators (RSI, MACD, Bollinger Bands), on-chain data (changes in holding addresses, large transfers), and sentiment monitoring.
Weekly risk control standards
When a weekly MACD death cross occurs and trading volume shrinks, immediately reduce positions to below 30%. This signal has an accuracy rate of up to 82%.

Practical Experience Summary#

Leverage usage warning: The lesson from a 40% loss from shorting BTC in 2019 indicates that leverage should be controlled within 3 times.
Capital management formula: Single investment amount = total account balance × 2% ÷ stop-loss percentage.
Position combination strategy: A golden ratio of mainstream coins (60%) + potential altcoins (30%) + stablecoins (10%).
Emotional management techniques: Set automatic take-profit and stop-loss, then close trading software to avoid emotional trading during the session.

OKX Activities This Month#

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