Insights on Ten Years of Harvesting in the Crypto World

1. Don’t get attached to hot coins; when profits from altcoins reach a certain point, it’s time to switch. Trying to ride the wave from start to finish will inevitably lead to disappointment. The reasoning is simple: altcoins cannot keep rising indefinitely. When they peak, it’s time to switch; otherwise, you’ll just end up back where you started, wasting your efforts, such as with FIL and LUNA from years past.

2. When prices are high and consolidating, seize the opportunity to sell; when prices are low and reaching new lows, a good opportunity is likely to arise. When the price creates a new high after consolidating at a high level, be cautious of false signals from the main players. Don’t hesitate to reduce your position or exit when necessary; conversely, if the price creates new lows after consolidating at a low level and quickly rebounds, it’s likely that the main players are making one last washout, so stay firm in your convictions.

3. In a poor market environment, prices may rise against the trend; small gains against the trend may lead to significant increases. In a good market environment, prices against the trend may experience slight declines; small drops against the trend may lead to significant drops.

4. Only increase your position when making a profit; do not average down on losses. This may challenge the understanding of many experienced traders. Our position should be increased when the price breaks above previous highs, not when it is continuously declining. Averaging down during a decline will only result in greater losses, ultimately leading to paralysis. It is crucial to cut losses.

5. As long as you recognize the bottom price, there will generally be a pattern of two advances followed by one retreat. At this point, don’t doubt it; generally, big surprises follow. Especially during trend rises, the market often rises while consolidating, so be cautious about exiting prematurely.

6. Top traders first look at sectors, second-tier traders focus only on individual coins, third-tier traders look at indicators, and the lowest-tier traders just gamble. This means that when we want to buy a specific coin, we should first consider the sector. Only by participating in hot sectors can we ensure high popularity and winning rates. Next, we look at the coins; those who focus solely on indicators are beginners, while those who consider everything are gamblers.

7. Indicators change with volume and price, so volume and price are the roots of the indicators. Not observing volume and price while relying on indicators will lead to mistakes in trading. Indicators are calculated based on price and trading volume, so true technical analysis requires looking at volume and price; price increases need substantial capital to drive them.

8. In an upward trend, look for support; in a downward trend, look for resistance. When the price is in an upward trend, operating based on support lines has a high success rate, with opportunities for buying on dips. Conversely, in a downward trend, operating based on resistance lines has a high success rate, presenting opportunities to short or exit.