Introduction
I want to begin by thanking two exceptional experts at BingX, J and L, whose advice has been crucial to my decision-making process. Though I can’t name them directly, their help has been incredibly beneficial. Among the numerous CEX platforms available, I ultimately decided to trust BingX, valuing the importance of selection over effort. Please note, this article does not offer financial advice. We all know that, so let’s skip that and get straight to it—selection is more valuable than effort.
Trading revolves around the ability to make effective decisions: what assets to invest in, when to make your moves, and when to exit the market. It’s a series of decisions that you make continuously. The key distinction between cryptocurrency and traditional stocks is that cryptocurrency demands quicker decisions.
Market conditions vary, and the outcomes of your decisions can differ dramatically depending on those conditions. For instance, when the market is uncertain, avoiding losses should be the primary objective. However, most people, especially 99% of office workers, will continue to trade in the hope of making a profit. If the market does not favor them, this often results in losses.
The key to achieving $1 million is about making the right choices—and making them swiftly.
1. Selection Over Effort: The First Step to $1 Million – Choosing the Right Coin
There are only three main types of crypto assets to trade: 1. Bitcoin, 2. Altcoins, and 3. Meme coins.
How do you decide? Your coin choice can make or break your strategy. Many traders fall into the following traps, which lead to consistent losses:
- They hope to get rich quickly through crypto, see Bitcoin’s slow growth, and instead turn to altcoins. When altcoins don’t yield the returns they expect, they venture into meme coins, which are highly volatile. They end up trading in all types of assets, eventually losing everything.
- Influencers who claim to have earned millions from meme coins encourage others to do the same, often leading to significant losses.
Reports show that over 80% of people in crypto lose money due to improper coin selection.
Bitcoin, altcoins, and meme coins all have varying levels of risk: Bitcoin < Altcoins < Meme Coins. These risk factors are inherent and cannot be altered. It is critical for investors to assess their risk tolerance before making a selection—understanding oneself is the first step.
1.1 Risk Tolerance: Understanding Your Limits
A low risk tolerance means you will likely experience discomfort and anxiety during market volatility. If you trade beyond your risk tolerance, you may end up making rash decisions and lose money.
Is it possible to trade beyond your risk tolerance? Yes, but only if the probability of success is higher than 60%.
Once you make your decision, there’s no going back. You must be ready to lose your entire investment if the market doesn’t move in your favor. For example, if you have a risk tolerance of $1,000, you should be ready to lose that amount if you invest in high-risk meme coins.
Many traders are drawn to the possibility of turning $1,000 into millions but fail to handle the stress of losing their entire investment. If you’re prepared for the worst-case scenario, borrowing money to continue trading becomes common.
Most traders end up borrowing money not because they lost everything, but because they previously earned and want to take more risks.
1.2 Choosing the Right Path: Bitcoin < Altcoins < Meme Coins
The level of risk associated with Bitcoin, altcoins, and meme coins varies according to the information you can access. So, where do you get your market information?
- If you have strong connections with hedge fund managers or key figures, trading altcoins could be quite profitable.
- If you are in touch with influential personalities, like famous KOLs or even Elon Musk, meme coin trading might be easier. Note: They must be genuine friends, not just accounts you follow online.
What does it mean to have connections? It means you gain access to exclusive, early information.
If you don’t have these connections, like me, the best option is to allocate 80% of your portfolio to Bitcoin and rely on your own analysis.
I find Binance Plaza inefficient for my needs—it requires too much time filtering out noise. Instead, I prefer to spend a few minutes analyzing the Bitcoin price on BingX to get a quick overview of the market trends.
This decision is about effectiveness and making money rather than wasting time.
2. Selection Over Effort: The Second Step to $1 Million – Timing
No asset is guaranteed to appreciate every four years, and the idea that Bitcoin strictly follows a four-year cycle is a myth. The chances of timing the market perfectly are only 0.06%.
Then why does Bitcoin seem to follow a cycle? It’s not just about mining halvings—it’s about liquidity—“hot money.”
Every four years, U.S. elections inject liquidity into the markets, boosting asset values temporarily to satisfy voters, creating a predictable pattern of rises and falls.
Timing the market comes down to understanding when liquidity flows in and out—the secret to successful investing.
2.1 Hot Money and Market Timing
Markets are influenced by human behavior, and since individuals are complex, the best approach is to track hot money.
Meme coins often surge because they are like balloons that inflate quickly when liquidity flows in. However, every financial crash has been a result of these balloons bursting due to excess liquidity.
Knowing when these “balloons” will burst or inflate is the key to timing. I prefer platforms like BingX, which already conduct research on listed coins, saving me significant time.
Even with thorough research, altcoins can still crash. That’s why position management is essential—considering how much capital to allocate and using buy/sell orders to automate your strategy.
3. Selection Over Effort: The Third Step to $1 Million – Position Sizing
Position sizing is critical to successful trading—it reflects your final choices.
Many traders end up losing money because their final actions contradict their original strategy. For example, an investor with a $1,000 risk tolerance may decide to put everything into meme coins, taking on too much risk.
Proper position sizing is about determining how much you can afford to lose. If you can handle 100 losses, your investment per trade should be $10.
Because short-term price movements are difficult to predict, Copy Trading offers an excellent way to minimize risk. After trying multiple platforms, I prefer BingX for its superior Copy Trading feature, which allows me to follow top traders.
Top 5 Exchanges
1. Coinbase: Fast bank transfers, but high fees.
2. Binance: Struggling with regulatory hurdles.
3. Bybit: Strong in contracts but lacks future growth.
4. OKX: High volume, but lacks innovation.
5. BingX: Best for precise coin selection and optimal timing.
