Introduction
I want to take a moment to thank J and L from BingX for their extraordinary support. While I cannot disclose their identities, their assistance has been invaluable. After carefully reviewing multiple CEX exchanges, I made the decision to choose BingX because I believe that selection is more important than effort. Please note that this article does not serve as investment advice—this is something we all understand. Let’s skip the formalities and get straight to the point—selection outweighs effort.
Trading revolves around choices: selecting what to invest in, when to enter the market, and when to exit. The success of trading depends on these decisions. What distinguishes cryptocurrency from traditional stocks is that crypto requires faster decisions.
The right decisions can lead to vastly different results, depending on market conditions. For example, when market prospects are uncertain, the best course of action is often to avoid significant losses. Yet, most traders—especially 99% of office workers—continue to trade, hoping for a profit. But if the market conditions don’t improve, trading against the market will inevitably lead to losses.
The key to making $1 million lies in making quick and correct choices.
1. Selection Over Effort: The First Step to $1 Million – Coin Selection
In crypto spot trading, there are three types of assets: 1. Bitcoin, 2. Altcoins, and 3. Meme coins.
Choosing the right one is essential to success. Many traders fall into common traps that lead to consistent losses:
- They believe that crypto will make them rich quickly, and when Bitcoin’s growth is too slow, they turn to altcoins. When altcoins fail, they move to meme coins, which are even more volatile. Eventually, they end up trading all types of coins and losing everything.
- After hearing about someone making millions with meme coins, they rush to follow the trend, only to experience significant losses themselves.
Research indicates that over 80% of traders lose money in the crypto space due to poor coin selection.
Bitcoin, altcoins, and meme coins all have varying levels of risk: Bitcoin < Altcoins < Meme Coins. These risks are inherent, and it is important for traders to evaluate their risk tolerance before making any decision. Understanding your own limits is critical for making wise decisions.
1.1 Risk Tolerance: Assessing Your Comfort Zone
If you have a low risk tolerance, market volatility can cause anxiety and discomfort. If you exceed your risk threshold, you may find yourself making irrational decisions, increasing the likelihood of losing money.
Can you trade outside your risk tolerance? Yes, but only if the chances of success are over 60%.
Once you make your decision, there’s no turning back. You must prepare yourself for the possibility of losing your entire capital. For instance, if you have a $1,000 risk tolerance and decide to invest all of it in high-risk meme coins, you must be prepared to lose it all.
Many traders believe that turning $1,000 into millions is possible, but they fail to handle the stress of losing it all. If you’re ready for the worst-case scenario, borrowing money to continue trading becomes a common response.
Traders often borrow money because they want to leverage the profits they’ve made, rather than because they’ve lost everything.
1.2 Choosing the Right Coin: Bitcoin < Altcoins < Meme Coins
Bitcoin, altcoins, and meme coins each carry different levels of risk, which depends on the information you have access to. Where do you find this information?
- If you have connections with hedge fund managers or high-level professionals, trading altcoins can be profitable for you.
- If your network includes powerful figures like KOLs or celebrities (such as Elon Musk), meme coins could be a great trading opportunity. However, these must be real, personal connections—not just accounts you follow.
Why are connections important? They allow you to get insider information before it becomes available to the public.
If you lack these connections, the best approach is to allocate 80% of your capital to Bitcoin and use market analysis to develop your own insights.
Platforms like Binance Plaza can be time-consuming and filled with irrelevant information. Instead, I prefer to focus on analyzing the Bitcoin price on BingX for a quick read on the market trends.
This method is about making money efficiently, rather than wasting time.
2. Selection Over Effort: The Second Step to $1 Million – Timing
The idea that Bitcoin follows a fixed four-year cycle is a myth. The chances of perfectly timing market cycles are only 0.06%.
So why does Bitcoin seem to follow a four-year cycle? It’s not due to mining halving—it’s driven by liquidity, also known as “hot money.”
Every four years, U.S. elections inject liquidity into the market to please voters, creating predictable cycles of asset appreciation and declines.
The key to successful timing is understanding when liquidity enters and exits the market—this is the essence of investing.
2.1 Liquidity and Timing the Market
Markets are driven by human behavior, and human behavior is difficult to predict. A simpler method is to monitor liquidity.
Meme coins tend to rise quickly because they are like balloons, inflating when liquidity enters the market. However, financial crises often occur when these “balloons” burst due to excess liquidity.
Understanding when a balloon will expand or burst is critical to timing. This is why I prefer using BingX—it already conducts thorough research on listed coins.
Even well-researched altcoins can still fail. That’s why position management is so important—allocate only a small portion of your portfolio to new coins and set up automatic buy/sell orders.
3. Selection Over Effort: The Third Step to $1 Million – Position Sizing
Position sizing is a key factor in successful trading. It involves determining how much you are willing to risk and how much you can afford to lose.
Many traders lose money because their actions contradict their initial strategy. For example, an investor with a $1,000 risk tolerance might decide to risk it all on high-risk meme coins, treating it like a gamble.
Position sizing is about knowing how much risk you can tolerate. If you can withstand 100 losses, you should only risk $10 per trade.
Since predicting short-term price movements is very challenging, Copy Trading is an excellent way to manage risk. After experimenting with various platforms, I returned to BingX because of its pioneering Copy Trading feature.
Top 5 Exchanges
1. Coinbase: Fast transactions but high fees.
2. Binance: Struggling due to regulatory challenges.
3. Bybit: Strong in contracts but lacks long-term growth potential.
4. OKX: Large volume but lacks significant innovation.
5. BingX: Best for coin selection and market timing.
