There is a very unwise way to trade cryptocurrencies $BTC that can easily consume all your profits. That’s why it’s crucial to take your time and learn properly. When trading cryptocurrencies, there are three things you should never do:
1. Never buy when prices are rising. Be greedy when others are fearful, and fearful when others are greedy. Develop the habit of buying when prices are falling.
2. Never place large bets.
3. Never go all in. Going all in makes you passive and vulnerable. The crypto market is full of opportunities, and being fully invested carries a high opportunity cost.
In addition, here are six essential rules for short-term cryptocurrency trading:
1. After a price consolidates at a high level, a new high often follows. After consolidation at a low level, a new low is likely. Wait for the direction to become clear before entering a trade.
2. Avoid trading during sideways markets. Most losses in crypto trading occur because people ignore this simple principle.
3. When reading candlesticks, buy after a bearish candle closes, and sell after a bullish candle closes.
4. When a decline slows down, rebounds also slow; a sharp decline is usually followed by a quick rebound.
5. Use the pyramid buying method to build positions gradually—this is a cornerstone of value investing.
6. When a cryptocurrency rises or falls continuously, it will eventually enter a consolidation phase. There’s no need to sell everything at the top or buy fully at the bottom. After consolidation, a price movement will follow. If the price drops from a high level, exit quickly. In short: respond promptly and wisely.
