Recently, many newcomers have been asking how to play virtual currencies to make money, so I decided to summarize my experiences from these years of exploration.

Speaking of Bitcoin, this thing is truly crazy. From a few cents in 2009 to now, the increase has been almost unimaginable. I looked through historical data, and almost every major dip has been a buying opportunity. During the pandemic in 2020, it was halved from $3,870, but six months later, it rebounded to $8,500. Last year, it dropped from $16,384, and this year, it rebounded again. Although the price is now over $75,000, the long-term trend still points upward.

The most common way to play virtual currencies is simply trading. Trading is divided into two types: long-term and short-term.

Long-term trading is actually the simplest. Since Bitcoin has already increased many times over, and the long-term trend is still upward, just find a relatively low point to buy and hold. But there's a trap to avoid—although Bitcoin generally rises, each dip can be quite frightening. Historically, there have been multiple drops of over 50%. If you buy at a short-term top, it can be a real ordeal.

So my advice is to use dollar-cost averaging. Instead of worrying about when the lowest point is, buy a little each month at a fixed time. For example, if you decide to invest $10k, divide it into 12 months and buy a little each month. This reduces psychological pressure and automatically buys the dip during major declines. History has shown that as long as you have confidence, holding Bitcoin long-term can be quite rewarding.

Short-term trading is much more complex. First, you need to be cold-headed—don’t expect to get rich overnight. Although the crypto market is volatile with many opportunities, the risks are also much higher. No daily price limit, no circuit breakers, high leverage, T+0 trading—these features make it easy for large funds to exploit retail traders’ greed and fear.

Key points for short-term trading: First, mindset is crucial—without greed, others have nothing to exploit. Second, follow the trend—buy long in an uptrend, short in a downtrend, never fight the trend. Third, invest within your means—beginners should not put too much in. When I started, a single day’s fluctuation was equivalent to two months’ salary, which was incredibly stressful. Fourth, although you shouldn’t invest too much, don’t just play demo accounts—real money makes you truly care about the market.

From a technical perspective, a breakout above consolidation is the most reliable buy point, and a breakdown below is a sell point. But honestly, short-term trading tests human nature more—whether you can act decisively at critical moments, and whether you can cut losses immediately after mistakes. Often, this split-second decision determines success or failure.

Besides trading, another way is mining. Bitcoin has a total of 21 million coins, and about 19.8 million have been mined so far. Mining is essentially using computers to solve math problems—those with higher computing power can compete for the right to record transactions and earn rewards.

But now, mining is no longer a game for individuals. I have a colleague who spent $1,334 on a computer, and even running 24/7, it only mined coins worth $3. After deducting electricity and equipment costs, there’s basically no profit. To scale up, you need hundreds of machines and cheap electricity. For ordinary people, the costs are too high, and individual mining has become very rare.

Overall, the core of playing virtual currencies is understanding your own risk tolerance. If you want stability, long-term dollar-cost averaging is best; if you want to take a chance, short-term trading is an option. But regardless of the method, you must do your homework and control risks. The Bitcoin market is constantly changing—learning more, observing carefully, and summarizing experiences are key to making money in the long run.