Recently, some friends asked me how to play virtual currencies to make money, so I might as well organize some of my insights from these years.

Speaking of Bitcoin, the market rally in early 2025 indeed rekindled hope for many people. From $100k soaring to $115,000, although there was a pullback due to policy changes later, in the long run, Bitcoin’s upward trend remains quite clear. The current price is around $76,800, which, compared to history, is still a relatively high level.

So, how to play virtual currencies? The most straightforward way is trading. I divide it into two approaches: long-term and short-term.

First, let’s talk about long-term. If you believe in Bitcoin’s long-term prospects, the logic is simple—buy at relatively low points, then just wait. Bitcoin has increased by 18 million times over the past ten years, which in itself explains a lot. Of course, there will be fluctuations along the way; historically, almost every rally has been accompanied by 30%, 50%, or even larger pullbacks. I saw some data indicating that from 2011 to 2024, Bitcoin generally experienced significant annual gains, along with corresponding corrections. For example, the ICO frenzy in 2013 pushed a 11,700% increase, but in 2014, it dropped 83%. In 2021, Tesla entered the market and the US printed money, leading to a 1,574% rise, but in 2022, it fell 74.7% due to the FTX collapse.

Therefore, the key for long-term players is mindset. You can adopt dollar-cost averaging—buying a fixed amount every month—to effectively smooth out costs. Or wait for Bitcoin to crash and gradually add positions. With the current size, a single-day drop of over 10% is considered a significant correction, which can actually be an opportunity.

Next, short-term trading. This requires more skill and mental preparation. Let me first pour cold water: the mindset of getting rich overnight is the easiest way to lose money. The crypto market indeed has larger volatility than stocks or forex, but the risks are also much higher. No daily price limits, no circuit breakers, high leverage, T+0 trading—these features make it easy for big funds to exploit retail traders’ greed and fear to harvest profits.

Key points for short-term trading: First, maintain a calm mind and don’t be swayed by market sentiment. Second, understand the trend—uptrend, pullback, rebound, downtrend—and identify which stage you’re in. The most reliable entry point is after consolidation when the price breaks upward. Conversely, a downward breakout after consolidation is a sell signal. Third, follow the trend—never short in an uptrend, never go long in a downtrend. Fourth, consider your risk tolerance when investing; beginners should not invest too much.

Regarding tools for playing virtual currencies, Contracts for Difference (CFD) are a good choice. Simply put, you don’t need to buy Bitcoin outright; you just predict the price movement. Using leverage, you can control larger positions with less capital, allowing participation in the market with relatively controlled risk. But it’s important to emphasize that leverage is a double-edged sword. Data shows that over 70% of leveraged traders lose money, so beginners should use 1:1 leverage—equivalent to no leverage—to learn the market more safely.

Another approach is mining. Bitcoin’s total supply is 21 million coins, with about 19.8 million mined so far. Mining essentially involves computing hash values to gain the right to record transactions and earn rewards. In the early days, you could mine with a regular computer, but now specialized mining hardware is required. I saw someone spend $1,334 on a mining rig, which, running 24 hours a day, could only mine about $3 worth of coins daily—after electricity and equipment costs, there’s basically no profit. Today, mining is mainly a game for professional players; ordinary people find it hard to participate.

Overall, how to play virtual currencies ultimately depends on your risk appetite and time commitment. Long-term is suitable for those who believe in Bitcoin’s long-term value; short-term requires more market knowledge and psychological resilience. Whatever approach you choose, the most important thing is continuous learning, risk control, and not being overwhelmed by market emotions. The Bitcoin market is constantly changing—observe more, think more—to find the profit strategy that suits you best.