How to survive in the crypto world? How to buy coins and sustain?
First, you need to protect your profits once you make money. For example, if you buy a coin and it rises by more than 10%, you need to be cautious. If it falls back to your purchase price,
without hesitation, sell it immediately. If you've made a 20% profit, then you must set a rule for yourself that you won't sell unless the profit is at least 10%, unless you're certain it’s a peak, otherwise don’t sell easily.
The same goes for a 30% profit; you should at least secure 15% profit before selling. This way, even if you don't have the technical ability to judge peaks, you can let your profits roll.
Second, you must decisively cut losses if you're losing money. If you buy a coin and it drops by 15% (you can set this number yourself, but 15% is a suitable reference), you need to quickly sell and get out. This is to stop your losses in time and not let yourself fall deeper.
If it rises afterwards, that's fine; it means your entry point was wrong, which is a mistake in trading. Every mistake has a cost, which is a loss. Remember, you must set a stop loss every time you open a position; this is a necessary condition for trading coins.
Third, if the coin you sold drops, buy it back at the original price. If you sell a coin and it drops, but you still have confidence in it, then buy the same amount back. This way, your quantity remains the same, but you have more funds in hand. If it doesn’t drop much after selling and you don’t buy back, and later it rises back to your selling price, then you have to buy it back unconditionally.
Although this may waste some transaction fees, it can avoid many risks of missing out. This principle can be combined with the stop loss principle: buy back when it returns to the original price, and if it drops again, cut losses. If you do this multiple times and find that the price of this coin is always unstable, then you need to choose a new entry point.
In short, short-term trading in coins requires principles. Quick entry and exit don’t mean reckless speculation, chasing hot trends doesn’t mean blindly crashing, taking profits doesn’t mean being timid, and staying on the sidelines doesn’t mean quitting the crypto world. Don’t get too hung up on the lowest and highest prices for buying and selling; being close enough is good enough.
