The rules of the cryptocurrency market cover four core areas: trading mechanisms, risk management, platform selection, and operational specifications. The specific rules are as follows:
Trading mechanisms and time rules
The cryptocurrency market supports 24/7 trading throughout the year, allowing investors to buy and sell at any time. Major exchanges like Binance and OKEx adopt a T+0 system, allowing same-day buying and selling, and support fragmented trading, with the minimum transaction unit reaching 0.000001 BTC. Market fluctuations are significantly influenced by global events, and investors need to pay attention to the impact of time zone differences on prices.
Risk management rules
1. Position Control: The holding of a single cryptocurrency must not exceed 5% of total capital, with a daily loss limit controlled within 3%, and always retain 20% cash to respond to unexpected risks.
2. Stop-Loss Strategy: Set a hard stop-loss of 30% for short-term trades, and use key moving averages as dynamic stop-loss references for medium-term trades.
3. Profit Distribution: Redeem one-third of the position when the increase reaches 30%, and redeem another one-third when the increase reaches 50%, locking in profits through phased exits.
4. Leverage Usage: Beginners should start with low leverage (≤3 times), and the use of leverage tools is prohibited when market trends are unclear.
Platform Selection Rules
1. Compliance Requirements: Prioritize licensed exchanges, with US-listed platforms having the best compliance, and confirm sufficient reserve ratio for derivative platforms.
2. Capital Safety: The ratio of cold storage should be higher than 70%, and platforms with insurance limits below 500 million USD are at risk.
3. Operational Verification: Identity verification must be completed during registration, and deposits and withdrawals should only be conducted through official channels or certified merchants.
Operational Norm Rules
1. Technical Analysis: Use the 5-day moving average to capture short-term opportunities, the 30-day moving average to judge medium-term trends, consider selling when the RSI exceeds 70, and consider buying when it falls below 30.
2. Strategy Execution: When a new coin is launched, if the turnover rate exceeds 200% on the first day, it can be entered; for mainstream coins, accumulate positions in batches when there is a 15% pullback, and do not average down when it breaks below its issue price.
3. Trading Discipline: Do not exceed 3 trades per day, aim for a target return of 3% for weekly swing operations, and do not blindly average down on losing positions.
4. Review Mechanism: Record trading logs daily, analyze successful/failure cases weekly, and eliminate long-term losing strategies.
Market Access Rules
1. Capital Threshold: It is recommended that the initial investment be 5%-10% of monthly income, and the use of essential living funds or borrowed funds is prohibited.
2. Knowledge Reserve: You need to master basic concepts of blockchain, wallet usage methods, and interpretation of market sentiment indicators.
3. Simulation Training: New users are advised to complete 1 month of simulated trading operations, and only engage in real trading after familiarizing themselves with order types and platform functions.
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