**From 50,000 to 1,000,000: The Underlying Logic of Compounding in Crypto**

Don’t start off dreaming about getting rich overnight. Focus on earning your first 1,000,000—if you can consistently make a 20% annual return on that, you’ll already be outperforming the income ceiling of most workers.

After so many years in this market, I’ve realized one thing: real profits don’t come from staring at the charts and trading short-term every day, but from a few precise compounding trades that maximize your returns. Use small positions to practice and get a feel for the market, and only go all-in when a true opportunity arises—remember, always go long. Shorts can wipe you out for reasons you might never understand.

**What Kind of Opportunity Is Worth Taking?**

There are three must-have signals:

- After a sharp drop and an extended period of bottoming out, there’s a sudden spike in volume and a strong breakout above resistance—this is a confirmed trend reversal.
- On the daily chart, price holds above key moving averages, and both volume and price expand together. Market sentiment visibly improves.
- When the trending topics are still quiet and retail investors are complaining, the smart money has already quietly entered.

**How to Do It: Taking 50,000 as an Example**

First, it’s important that this 50,000 is profit you’ve already made, not your living expenses. Protect your principal first, then think about going on the offensive.

Use isolated margin mode, and never open a position larger than 10% of your total capital per trade. Keep leverage below 10x, which effectively gives you 1x real leverage. Set a stop loss at 2% for every trade—this ratio ensures you won’t be crippled by a single mistake.

Once a breakout is confirmed, add to your position for the first time. When the price rises 10%, use 10% of your new unrealized gains to open another position. Keep your stop loss at 2% throughout. Never go all-in, never average down, and never hold on stubbornly—if you hit your stop loss, accept the loss and save your capital for the next round.

In a 50% major uptrend, this compounding method can grow your 50,000 to 200,000. Catch two such cycles and you’ll reach the 1,000,000 threshold. Honestly, if you successfully compound 3 or 4 times in your life, going from 50,000 to 1,000,000 and then to 10,000,000, you can basically retire early.

**Risk Management Is the Key to Survival**

Engrave these three iron rules in your mind:

1️⃣ Don’t touch choppy markets, don’t touch downtrends, don’t touch hype-driven shitcoins.

2️⃣ With isolated margin, even if you lose your principal, you only lose the margin for that position. The rest of your funds are automatically locked, so a liquidation won’t affect your total account.

3️⃣ During compounding, you must withdraw 30% of your profits to buy a house, a car, or do something real. Don’t let human greed eat away your gains.

To put it simply, compounding isn’t gambling—it’s about waiting for opportunities. Act only when the time is right. If not, stay on the sidelines. It’s better to miss out than to take reckless trades.

Once you hit your first 1,000,000, you’ll naturally develop a solid understanding of position management, market sentiment, and market cycles. After that, it’s just a matter of copy-pasting your successful experience.

That’s how this market works—it always rewards those who are patient and play by the rules.