Having been involved in the crypto space for ten years and actively trading for six, I’ve tried every trading style—long-term, short-term, swing trading—so I do have some say on the topic of short-term trading strategies.

Recently, many beginners have asked me how to make money in crypto, and I’ll be honest—it's very difficult. Based on my years of observation, very few people can achieve consistent profits; less than 10% is already optimistic. But that doesn’t mean it’s impossible to earn, it just requires a systematic approach and enough patience.

I’ve always believed that mastering any skill requires following the 10,000-hour rule. Eight hours a day, reviewing over 200 days a year, it takes about five years to get started. The foundation of stable profits is built on this. During this period, you will inevitably encounter big pitfalls, so my advice is not to risk more than you can afford within ten years. I’ve seen too many people leverage contracts with large multiples, trading from tens of thousands to hundreds of millions, only to lose everything in a bear market—just that you don’t know it.

Regarding short-term trading strategies, first, define what short-term means. My definition is timeframes of five minutes, fifteen minutes, one hour, four hours. Some also consider trades within half a month as short-term, depending on personal habits. The key is to use the same timeframe for entry and exit; don’t mix them up. For example, if you trade on the 15-minute chart, don’t look at the 1-hour chart after entering, because one hour has four 15-minute candles, which can easily lead to profit erosion or getting trapped.

There are mainly two ways to do short-term trading. One is trading within oscillating ranges—buy at the bottom, sell at the top—this is relatively stable but has limited space. The other is trend breakout trading, divided into left-side and right-side trading. Left-side means entering at the breakout, which is riskier and prone to stop-loss; right-side waits for a pullback without breaking support before entering, which is less risky but easier to miss opportunities. My personal approach is to buy some at the breakout, then add on the pullback, reducing risk and avoiding missing the move.

The two most common pitfalls in short-term trading are: first, not setting stop-losses, leading to being trapped and eventually getting wiped out or forced to sell at a loss; second, turning a short-term trade into a long-term hold—initially planning to trade short-term, but after getting trapped, continuously adding to lower the average price, resulting in bigger losses. No matter what method you use, always set a stop-loss when entering; risk management should always come first.

I’ve summarized some practical principles for short-term operations. If you gain more than 10%, start protecting your principal—if the price drops back to your entry point, sell immediately. When you reach 20%, set a rule to only sell if you’ve made at least 10% profit, unless you’re very confident it’s a local high. If you lose 15%, cut your losses and exit—timely stop-loss. If the price rebounds later, that’s fine; it just means your entry point was wrong.

Regarding position management, short-term positions should occupy no more than 10% of your total portfolio; the rest should be in long-term holdings or used for averaging down. Long-term holdings are the real foundation of making money. When choosing coins, stick to familiar projects you can understand. During bear markets, it’s recommended to focus only on mainstream coins or even Bitcoin, because losses are temporary; getting trapped in altcoins might mean permanent loss.

Reading candlestick charts is fundamental for short-term strategies. Besides reflecting volatility, candlesticks can tell you which projects are well-managed in terms of market cap, and which are just pump-and-dump schemes that collapse after being hammered down. For example, many Bitcoin forks, except BCH, have charts that are unreadable—they’ve been declining since listing, with no support left, and the retail investors are trapped, turning their holdings into dead assets.

I also want to emphasize that short-term trading is not speculation. True short-term trading involves understanding market patterns and requires strong skills. It tests your technical ability and patience. Those proficient in short-term trading have studied countless candlestick patterns and summarized their own rules.

In a bull market, follow the trend—go long, avoid shorting. Although there are pullbacks, the price tends to recover, making long positions the least risky. In a bear market, do the opposite—short, avoid longing. Don’t go long before the bottom is confirmed. During bull markets, it’s better to denominate in coins—making more coins means making more profits; during bear markets, use fiat to protect your capital, because prices can drop over 90%.

Regarding news, my advice is not to pay too much attention to its authenticity, as news is everywhere and often lagging. More importantly, observe market reactions—if good news doesn’t push prices up, or bad news doesn’t push prices down, that’s the real market signal.

Another key point: don’t blindly follow others. Many apps now have copy-trading features, but blindly copying big traders can be manipulated, and you won’t learn the logic or grow. Technical analysis is the best guide—especially for liquid assets like Bitcoin, where technicals are the most effective tool.

One core insight I’ve gained is that true winners in crypto can profit in a bull market and preserve strength in a bear market. The power of compound interest is like a snowball—growing larger over time. Only by establishing scientific position sizing and risk control can your assets continue to grow amid market volatility.

Finally, I want to say that trading is a battle against your own greed and fear—easy to understand but hard to do. But if you can overcome these, develop your own short-term trading system, and stick to it, time will give you the answer. Don’t rush for quick gains; this is a game of probabilities. A stable profit system is more valuable than any momentary high profits.