In the volatile world of cryptocurrency trading, stories of rapid wealth creation and devastating losses are common. One such story is that of a young trader known online as "If I Don't Understand," who transformed his fortunes from near bankruptcy to earning over $10 million in just nine months. His journey offers valuable insights for anyone navigating the crypto markets.
From Traditional Business to Crypto Trading
Born in 1996, "If I Don't Understand" began his career not as a trader, but as an e-commerce entrepreneur running Amazon stores. The dramatic rise of tokens like SHIB and AXS (Axie Infinity) in 2020 captured his attention, revealing the potential of blockchain-based assets. This discovery marked the beginning of his deep dive into crypto.
Unlike many impulsive entrants, he approached the market with discipline and dedication. While managing his e-commerce business during the day, he spent evenings from 7 PM to 2 AM researching blockchain projects. Starting with just 7,000 RMB (approximately $1,000) used to purchase AXS, he saw significant returns, which provided both capital and confidence to expand his efforts.
With an initial investment of 30,000–50,000 RMB, he began actively trading during the 2021 GameFi boom. He immersed himself in numerous GameFi projects, studying their economic models and community dynamics. Through strategic investments in projects like Radio Caca, BinaryX, and Cryptominers, he grew his capital into his first million RMB.
However, success brought overconfidence. During the market crash of May 2022, when Ethereum plummeted from $3,700 to $800, he aggressively bought the dip, expecting a quick rebound. Instead, he lost over 95% of his portfolio, nearly wiping out his entire savings. This experience taught him a critical lesson: always respect the market and avoid emotional decisions.
Building a Multi-Million Dollar Trading System
After his significant loss, he stepped back from trading to rebuild through his e-commerce business. Once he accumulated sufficient capital, he returned to crypto with a new philosophy: focus on consensus, not just technology.
He believes that the value of a token is driven by collective belief rather than technical superiority. His strategy involves identifying emerging trends and consensus early, then positioning himself before the majority catches on. This approach requires constant monitoring of market sentiment, liquidity shifts, and macroeconomic indicators.
He successfully capitalized on several major trends:
- GameFi (2021): By understanding the economic mechanics of play-to-earn models, he achieved his initial capital growth.
- BRC-20 Inscriptions (2023): Recognizing the short-term speculative nature of inscriptions, he entered early and exited with significant profits before the trend faded.
- Meme Coins (2023–2024): His most profitable phase involved meme coins on Solana. By comparing new tokens to established ones like BONK, he identified undervalued opportunities. One notable trade involved going long on NEIRO when others were shorting, resulting in gains of around $5 million.
His shorting strategy is equally methodical. He looks for tokens that have surged without corrections and whose market caps are unsustainable relative to their fundamentals. Trades like shorting PNUT and TRUMP after their listings on major exchanges exemplify this approach.
A Practical Guide for New Traders
"If I Don't Understand" emphasizes that while his exact path isn't replicable, his methods are teachable. He breaks down his approach into actionable steps:
- Self-Education and Research: The crypto space evolves rapidly, so continuous learning is essential. He recommends dedicating time daily to study market trends, project fundamentals, and community discussions.
- Information Filtering: Instead of drowning in data, follow key opinion leaders (KOLs) who consistently identify promising projects early. Also, engage deeply in project communities on Discord or Telegram to gauge authenticity and momentum.
Entry and Exit Signals:
- Enter when a project shows steady development, clear roadmaps, and growing team activity but remains under the radar.
- Exit when FOMO peaks, media coverage surges, and the token's market cap approaches or exceeds comparable projects.
- Risk Management: Preserving capital is paramount. He advises always keeping 30–50% of capital in reserve to survive market downturns and seize new opportunities. For larger portfolios, avoid overexposure to illiquid assets to prevent targeted attacks by market makers.
He also highlights the importance of understanding basic technical analysis tools like MACD, RSI, and KDJ, though he cautions against overreliance. Instead, combine these with momentum analysis—observing how assets react to broader market movements—to refine timing.
For execution, he prefers limit orders over market orders to improve entry and exit prices. During panic sell-offs, he sets buy orders at key support levels to acquire assets at a discount. Similarly, he places sell orders near resistance levels for short positions, ensuring favorable risk-reward ratios.
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The Mindset of a Successful Trader
Beyond strategies and techniques, long-term success in trading requires mental discipline. "If I Don't Understand" shares his core principles:
- Embrace Patience: Wealth accumulation takes time. Avoid the temptation to chase quick wins; instead, focus on high-probability opportunities aligned with your research.
- Manage Leverage Wisely: Use low leverage (3x or less) for long-term positions and avoid high-risk bets that could wipe out your portfolio.
- Avoid Debt: Trading with borrowed money amplifies risk and impairs judgment. Only use capital you can afford to lose.
- Stay Grounded: Despite his success, he maintains a frugal lifestyle, avoiding extravagant spending and remaining focused on sustainable growth.
He rejects requests for direct trading guidance, believing that true success comes from developing one's own system. Instead, he shares his thought process and lessons learned, empowering others to build their competence.
Frequently Asked Questions
What is the best way to start trading cryptocurrency?
Begin with thorough research and education. Understand market fundamentals, technical analysis, and risk management. Start with a small capital allocation and gradually increase exposure as you gain experience.
How important is technical analysis in crypto trading?
Technical analysis provides valuable insights into market trends and potential entry/exit points. However, it should be combined with fundamental analysis and sentiment indicators for a holistic view.
What are the biggest mistakes new traders make?
Common pitfalls include emotional trading, overleveraging, neglecting risk management, and chasing hype without due diligence. Avoiding these requires discipline and a well-defined strategy.
How can I identify potential meme coin winners?
Look for tokens with strong community engagement, relatable narratives, and liquidity on major platforms. Compare their market caps to established meme coins to assess growth potential.
Is it safe to trade with leverage?
Leverage amplifies both gains and losses. It should be used cautiously, with strict stop-loss orders and only by experienced traders who understand the risks involved.
What resources do you recommend for learning?
Follow reputable KOLs, join active trading communities, and use educational platforms that offer courses on blockchain technology and market analysis. Always verify information from multiple sources.
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Conclusion
The journey from bankruptcy to millions in crypto trading is fraught with challenges, but it is achievable with the right mindset, strategy, and discipline. By focusing on consensus-driven opportunities, managing risk meticulously, and continuously learning, traders can navigate the markets' volatility and build lasting wealth. Remember, as "If I Don't Understand" emphasizes, the key to success lies in patience and the willingness to learn from both wins and losses.