X Space Review | Trader's Journey, Unveiling the Secret to Achieving "Steady Happiness" in the Cryptocurrency Industry
How do traders manage to thrive in the ups and downs of the market and make a "killing"? What are their inner journeys?
The cryptocurrency market is full of surprises, with even the bull market harboring mysteries. On December 17, BlockBeats interviewed Gate.io's Product Manager Chloe, senior trader LOYAL, and the top community leader Ice to discuss how they achieved "steady happiness" in the market's ups and downs. How did traders operate to earn overflowing profits, and what were their experiences?
In the past one or two weeks, the market has been extremely volatile, with Bitcoin experiencing multiple early morning price plunges followed by rebounds. We have all experienced panic, stop-loss, and even liquidation, as well as bottom-fishing profits, leading to a mix of emotions. In a bull market, everyone's trading frequency has increased, accompanied by a lot of trading contemplation and insights.
Therefore, today, BlockBeats has invited three heavyweight guests who have weathered many market storms and have their own trading strategies. They will also share with us how to deal with extreme market conditions, risk management strategies, their current favorite trends, and even how to identify the next hundredfold opportunity.
BlockBeats: First, could each guest please introduce themselves?
Chloe: Hello, everyone. I'm Chloe, the Product Manager at Gate.io. I'm delighted to be invited to today's roundtable discussion. As you may know, Gate.io is one of the world's leading cryptocurrency trading platforms. We are committed to providing a secure, convenient, and innovative trading experience for global users. As a Product Manager, I have been involved in the innovation and optimization of Gate.io's products, continuously monitoring market trends and user needs to ensure that we provide professional tool support for traders. Recently, we just launched Gate.io's official Twitter account, so feel free to follow us. We will regularly update product features and technical innovations. I hope today's sharing will inspire you all. Let's explore how to achieve "steady happiness" in the cryptocurrency industry together.
LOYAL: Hello, everyone. I'm LOYAL from a market-making company based in Singapore. I'm honored to participate in today's Space. Let's explore how to gradually double our assets and hope we can discuss and learn together.
Ice: Hello, I'm Ice. I have been deeply involved in the cryptocurrency field for many years, conducting research and investment in some projects. I have a certain level of market insight and am more active in the primary market.
BlockBeats: Last week on December 10th, BTC experienced a morning dip, and the liquidation situation that day was extremely severe, far exceeding the "312" event. Fortunately, within just two days, Bitcoin returned to the $100,000 level. Could our guests please review the market sentiment and public opinion on that day? What was your initial reaction at the time? Or could you share any advanced actions taken by our guests, such as liquidation, stop-loss, or dip-buying?
Chloe: In the early hours of December 10th, I remember BTC briefly dropped to around $94,000 and then quickly rebounded to around $96,000, a process that lasted for about 10 minutes. From my recollection, after December, Bitcoin experienced two large-scale short-term declines, but this drop was the highest in nearly two years. My initial reaction was that Bitcoin was undergoing a correction as it had surpassed $100,000, and long-term holders might be starting to take profits, which is a normal occurrence during a Bitcoin bull market. Such short-term corrections help the market digest previous gains and set the foundation for future trends. However, due to my conservative trading style, I basically did not open any positions after Bitcoin broke $100,000, so I did not have long or short positions during the dip that day.
LOYAL Luoyao: When BTC dipped last week, I remember I was with friends and didn't notice it at the time. When I got back home, I saw everyone discussing it on WeChat Moments and Twitter. The sudden plunge was indeed impressive, and at that time, most retail investors in the market were very scared, fearing the price would drop straight to $80,000 or $70,000, so many people sold off directly. Some Web2 bosses, especially real estate tycoons who entered the market recently, bought BTC at high prices and were very scared during the crash, feeling like they were being cut. In the morning, I learned that some friends' liquidation scales even reached $1 to $4 million, and they even got professional traders to help them with transactions.
I believe this plunge was the result of big players shaking out weak hands. However, for those who believe in Bitcoin, it is important to remain calm during sudden drops and not panic just because BTC dips once. Personally, when I open a position, I always set take-profit and stop-loss orders to avoid excessive losses. When funds experience significant fluctuations, I suggest that everyone can buy in batches. Ideally, the market can quickly rebound, which can help some people calm down. The bull market is still ongoing recently, and everyone should stay rational, operate based on the overall market conditions, and avoid blindly following trends.
Ice: From what I recall, the main reason for Bitcoin's dip on December 10th was the news about quantum chips. In a market that was already in adjustment, this news may have exacerbated the panic. People in our community are online 24/7. At the moment of the dip, everyone in the group shouted "dip," then proceeded to analyze the reason behind the dip.
In fact, compared to the price drop on December 10th, I think the drop on December 5th was more severe. On December 5th, Bitcoin briefly dropped to the $90,500 level. This time, it seems there was no specific news triggering the drop; at least personally, I didn't find any negative news. Around December 5th, if you were a frequent trader, you could actually catch some retracement signals. During that period, the contract funding rate had already risen significantly, and many large locking arbitrage positions were effectively exchanges subsidizing trades. In this kind of contract funding rate environment, the price cannot sustain itself in the long term. So, I only made small trades, not going as crazy as in late October or early December. I also feel fortunate that I didn't take large positions, so there was no liquidation risk. At that time, the group was constantly discussing other projects. When I saw the drop, I promptly bought a small position, roughly 10%, and then took profits through the rebound.
BlockBeats: When faced with a sudden black swan event and unexpected price drops, what preparedness and risk mitigation plans do you and other guests have in place? For example, position management, order placement strategies, setting stop-loss points, etc. In addition, could you share your usual trading strategy? For example, being on the left side or transitioning from the left side to the right side.
Chloe: Our industry is very unique and may encounter some extreme market conditions, such as "519" or "312." As a conservative person, I control the size of my positions in terms of position management. I don't concentrate my funds too much on a single asset but instead keep it between 20% and 30% of total funds. Additionally, I use order placement strategies and set dynamic stop-loss and take-profit orders. When the market is highly volatile, I use limit orders to limit losses, and I also trade based on market trends. For example, in a bull market like now, I reduce my short strategy.
There is a common saying in trading, "cut your losses short and let your profits run." In practice, however, people are often not rational enough when facing risks and rewards. For example, when faced with profits, people may be risk-averse and tend to take profits quickly. Conversely, when facing losses, people may be more inclined to take risks, even after experiencing significant losses, they may continue to hold onto losing positions, hoping to break even. Faced with this irrational behavior, we need to set stop-loss orders to protect our funds. Take-profit and stop-loss orders are generally set based on the risk-reward ratio and support and resistance levels. I personally like to set my take-profit and stop-loss based on the support and resistance levels.
Here, I want to mention two features of Gate: one is a comprehensive take-profit and stop-loss function, and the other is the recently launched Smart Support and Pressure Line feature. The take-profit and stop-loss functionality includes full position, partial position, candlestick, trailing stop, MMR, and various other types. I personally prefer using MMR for take-profit and stop-loss as it helps me control losses within an acceptable range. The Smart Support and Pressure Line feature is based on the BOLL20 indicator and an AI algorithm-generated index that clearly shows the current market support and resistance lines on the candlestick chart. I encourage everyone to try out these new features to make trading safer.
LOYAL HODLer: I won't use a large position to engage in contracts, but I still need to maintain a basic sense of touch. Faced with a black swan event, whether trading BTC or altcoins, the key is to have a risk management plan in place, not to panic due to unexpected events, and avoid a mindset collapse. If you panic, your funds will gradually drain along with your mindset, which is very unworthy.
My core principle is to allocate positions reasonably, not to let the trading account suffer heavy losses due to a single event, which is crucial. The uncertainty of a bull market is very high, and we cannot predict when a pump will occur. Furthermore, with altcoins, the timing of market maker cooperation with the project team for a pump is also uncertain. We need to maintain a flexible operational space, devise our own order placement strategy, and refine everyone's order placement strategy through time and market conditions.
I lean towards right-side trading, entering based on a 15-minute candlestick analysis and signals. Regarding a black swan event, everyone should not panic; the first step is to adjust the mindset. If the mindset isn't good, try to avoid engaging in contracts. Ensure that your account has multiple allocations and orders placed at multiple levels.
Ice: I am also a more conservative investor; basically, I must keep 20% of my position untouched, which is reserved for emergencies. Having experienced the turmoil of 2021 and the bear market, I deeply feel the need to reserve a portion of the position as a last line of defense, even if it's 10% or 20%, I will not touch this position.
Usually, the position of a single coin does not exceed 30% of the total funds. The order placement strategy mainly involves setting buy and sell orders in advance at resistance and support levels, and stop-loss positions are basically set based on technical indicators. I tend to lean towards right-side trading, waiting for the market trend to be clear before entering. This conservative strategy has its pros and cons. The disadvantage is that I may miss the initial price surge, but the advantage is that it can reduce risks. Faced with a short-term violent spike, without major positive news, I usually adopt a quick-in, quick-out strategy and never chase prices higher. My spot investments will have a larger portion, while contract operations are mainly based entirely on technical indicators, and I will control the position size.
BlockBeats: What market indicators do you generally pay attention to in order to adjust your position, such as Bitcoin ETF inflow/outflow, on-chain data (such as active addresses), funding rates, macroeconomic indicators, etc.? Are there any indicators that you think are overlooked but very important? Have these indicators helped you in your past operations?
Chloe: I'm not usually that technically inclined; I focus more on some market indicators related to people, such as the fear index, which is an important indicator that measures market sentiment. It analyzes the market based on the degree of fear and greed of market participants. If the index shows the market in a greedy state, it means the market may be overheated, investors may be overly optimistic and impulsive; if the index shows the market in a fearful state, the market sentiment will be more cautious and fearful, and there may be undervaluation in the market.
In addition, I also pay attention to public opinion on social media. In the age of social media, everyone can express their opinions and emotions, and the sentiment on social media can reflect the current market sentiment. I monitor discussions and viewpoints on the platform to understand the market sentiment. For example, if Musk suddenly tweets about a certain token, that token may experience a sudden surge. This kind of dynamic sentiment requires us to pay close attention.
LOYAL Luoyao: Regarding indicator analysis, I believe it is still necessary to look at the overall market sentiment. Recently, I have been in contact with many projects on TON and some on Sui. If I were to buy spot, I would first analyze the project's investment background, key people, team information, and the market-making team behind it. If the project is good, some major Key Opinion Leaders (KOLs) are endorsing it, the current sentiment is also very high, and the community development is good, I might conservatively buy around 1000 to 5000 US dollars.
If there is a sell-off during this period, I would observe the project's status, including the community's activity level, to decide whether to reduce or add to my position. I would also be interested in the project's funding situation in the market, as it can reflect the market's enthusiasm. The project's funding, on-chain data, active addresses, and transaction volume are also very important to me. For new projects, I would not easily enter into contracts. I hope more and more people can analyze market indicators from a professional perspective. Although we may not make a lot of money, we can also profit from some speculative activities.
BlockBeats: What specific tracks are the guests currently focusing on? Where do you think the next 100x coin will emerge from? For example, the currently hot AI track, how high do you think the ceiling will be?
Chloe: I am currently more focused on Meme and AI. In the first half of this year, the AI sector was on fire, and the AI track in the cryptocurrency industry was also driven up. Many AI products are still in the early stages, but some sectors are relatively mature, such as AI agents. Although AI agents have only recently gained popularity, they already have practical applications. Applications like Twitter Posting AI, which are relevant to daily life, are also widely acclaimed.
Although the AI sector is still in its early stages, I believe it is an unlimited field because AI can create many things beyond our imagination. The market's valuation of the AI sector is also hard to predict. Since the emergence of AI, our lives have changed significantly, and this sector is worth continuous attention.
Another track is Meme. Starting from March this year, some memes on Solana began to rise against the trend, and many people made good profits from this wave. Subsequently, the Meme track became increasingly hot, even leading to some split versions of lowercase and uppercase memes. The 2024 Meme market mainly revolves around animal themes, hot events, and concepts from TikTok, and other narratives, making the narrative more diverse. Through viral dissemination on short video platforms like TikTok and Twitter (now X), the influence of memes will spread rapidly like a virus. This multidimensional narrative will inject more vitality and possibilities into the market.
LOYAL Voyager: Recently, my main focus has been on the AI and DeSCi tracks, which are currently quite popular. According to market statistics, meme coins have gained significant attention in this bull market cycle, attracting over 3 million participants in the European and American markets, which is a remarkable figure.
I am particularly bullish on tracks that have real-world applications, such as AI agents. Web 2 users are entering the crypto space, wanting to understand what Web 3 is doing and what practical value blockchain technology can bring. Many people are skeptical of our narrative and story, but tracks like AI that can be practically implemented to deliver real benefits are undoubtedly very promising.
As for the GoX coin, I believe it will emerge in either the AI track or the DeSCi track. However, the DeSCi track may not be as hot as before, so it can be temporarily ignored. A few days ago, a friend recommended a coin called LUCE, a project related to religion, which may see some action in the future. I suggest everyone keep an eye on it as I think it is a good target, and now may be a good entry opportunity.
Ice: You may have seen that Donald Trump recently purchased approximately 130,000 units of Ondo. Ondo is a leading project in the RWA track and has always been well-regarded by the market. Looking back on this year, major public chains have been actively deploying their market shares. In the past month, I have a positive view of the Meme, AI, and RWA tracks, with a focus on the RWA track. The RWA track has two outstanding projects, XMW being one of them. This project saw its market capitalization increase from $1 million to $200 million in just two months, achieving a hundredfold growth. The other project is TIN, which also saw its market cap rise from $200 million in just two months to reach $4 billion, achieving a 200-fold increase. These two projects have alerted me greatly. I originally came from trading in meme coins and have always been active in the primary market. Even in bear markets, I have not left and have participated in public chains involved in the primary market and have achieved some results, but there have also been times when I suffered heavy losses. Starting from investment research, we will discover some projects with potential.
BlockBeats: Previously, the general expectation was that Bitcoin would reach $120,000 in this bull market cycle, with the bull market expected to last until April next year. Now that Bitcoin has surpassed $100,000, how do the guests view the future market trend? How high do you think Bitcoin will go in this bull market cycle?
Chloe: As time goes on, the mining difficulty of Bitcoin continues to increase, and the remaining Bitcoin supply is becoming scarcer. Currently, less than 6% of Bitcoin has yet to be mined. With the effects of Bitcoin halving and the Trump effect, more and more institutions and large companies are starting to include Bitcoin in their asset allocations, including some listed companies, financial institutions, and even some governments.
Overall, Bitcoin's value is being recognized by more people, which is a very positive trend for the entire industry. However, the financial market always carries a lot of uncertainty, making it very difficult to predict the peak of this Bitcoin cycle. For individual investors, it is most important to focus on risk management, pay more attention to policy implementation, and some macroeconomic indicators.
LOYAL Luoyao: Currently, the price of Bitcoin is around $100,000, but I believe that the peak of this bull market could exceed $120,000. Especially as the global financial situation gradually improves and institutional investors start to participate, the entry of traditional industries to buy Bitcoin further drives market development. $120,000 may be a short-term target, and with more funds entering the market, as well as the continued advancement of Bitcoin ETFs and Ethereum ETFs, the price of Bitcoin may go even higher in the coming months.
Yesterday, I attended a Bitcoin conference in Hong Kong, and it is expected that Hong Kong will introduce three legal drafts related to Bitcoin in the future, which may cause a sensation in Hong Kong and even in China. In the next few months, I believe that Bitcoin could reach higher price levels, possibly reaching $150,000. However, the end of the bull market still depends on the macroeconomic trend, such as the policies post-Trump administration. If the environment remains optimistic, it would not be surprising if the bull market extends until June to August. After the issuance of the legal drafts in Hong Kong, more people will enter the crypto market, and when we have compliant laws, some timid but wealthy bosses will gradually join this market.
Ice: Regarding the price of Bitcoin in a bull market, I am more optimistic about the $150,000 position. Based on the U.S. stock market and other news sources, as well as the recent trend of Bitcoin, most people are optimistic about the market. I believe that the first half of 2025 will be a very good year for the crypto community, but we should not be overly optimistic, as risks still exist. The host mentioned that the RWA track may be very popular in this bull market, especially after the Trump administration. Everyone also mentioned the $150,000 mark, but the market is hard to predict, and project assessments are also very challenging.
Let's talk again about Gate's products. I think that when trading, whether in a bull or bear market, it is very important to focus on taking profits and stop-loss orders. In order to provide users with a scientific basis for trading, they can set profit-taking and stop-loss points. We have designed an intelligent support and resistance line. As a product manager, we face the market trends every day, and every decision we make may have a profound impact on the overall direction. Therefore, our starting point is to pay more attention to user needs, stay sensitive to market dynamics, in order to accurately predict potential risks, which is also the core element of our trading product strategy.
Space Link: https://x.com/i/spaces/1MYxNMkAMoRJw
This content does not constitute any offer, solicitation, or advice. You should always seek independent professional advice before making any investment decisions. Please note that Gate.io may restrict or prohibit some or all services from users in restricted areas. Please read the User Agreement for more information.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
HSBC: Still expects the Fed to cut interest rates by 75 basis points in 2025
AAVE breaks above $320
BTC breaks through $95,000
Animoca Co-Creation: Will airdrop its own MOCA to the community in two phases