In early 2024, I took 10,000 yuan of idle funds to test the waters in the crypto world, and by the end of the year, my account exceeded 1.8 million. This experience made me realize a harsh fact: the strategies for making money in the crypto space are fundamentally different from those in traditional investment markets. Today, I want to share some practical insights to provide reference for both newcomers who want to earn seriously and veteran investors.

**The earning potential in the crypto space, the data speaks for itself**

Many people equate the crypto world with gambling, but looking at the data can slap them in the face: the A-shares market has increased by about 78% over the past 20 years, turning 100,000 yuan into 178,000 yuan, with an annualized return just over 4%. In contrast, Bitcoin surged over 220% from 2023 to 2024, meaning that 100,000 yuan could turn into 320,000 yuan—equivalent to a year's return that matches 20 years of A-share growth. Even more astonishing, if you bought Bitcoin every January starting from 2014 and sold at the end of each year, four out of seven years saw gains exceeding 120%.

But there's a trap here: I also fell into it when I first entered the space. In April 2024, my account dropped from 190,000 to 40,000 yuan because I held onto old coins like EOS and used stock trading strategies to operate. Later, I realized that the crypto market operates under a completely different set of rules, and blindly following the trend only leads to being cut.

**3 key mentalities for turning things around**

**1. Focus on new coins, stay away from old coins—concentrated chips are the key to profit**

In the early stages of a new coin's launch, the chips are mainly concentrated in the hands of the project team. For example, when some new projects launch, the top 10 addresses hold up to 91% of the supply, which means there's little pressure to manipulate the price, making it easy for the coin to skyrocket. Conversely, old coins have their chips dispersed long ago; the top 10 addresses might hold only around 2%, making it extremely difficult for big players to push the price up, resulting in slow growth.

My approach is: within 3 to 7 days after a new coin's launch, use small positions to test the waters. Once the price breaks through 150% of the issuance price, add to the position. When it reaches about 3 times the initial price, take profits in batches. This way, I can catch explosive growth periods without being overly greedy.

**2. Learn to identify chip distribution—this is the key to making money**

Coins with high concentration of chips have more room for manipulation and are prone to explosive rallies. On the other hand, if chips are too dispersed, no one can move the market, and your profit potential hits a ceiling. When analyzing on-chain data, focus on the holdings of the top 10 or top 20 addresses; this can tell you how much room there is for the coin to grow.

**3. Risk management always comes first**

Even the best opportunities are not worth going all-in. The lesson I learned is: every investment must have a clear stop-loss point. Don’t let reluctance to cut losses turn small losses into big ones. Especially with new coins, which tend to be highly volatile, caution is essential.

The wealth opportunities in the crypto space are indeed greater than in traditional markets, but the prerequisite is that you understand the rules, know how to cut losses, and can control greed. These are not empty words—they are experiences earned with real money.