Eight Key Principles of Cryptocurrency Trading, A Must-Read!

Cryptocurrency experts understand the knowledge of wealth; these eight key principles are not to be missed. 1. Averaging down to preserve capital; seeking profits is greed.

In trading cryptocurrencies, there will always be a few coins that get stuck. At this time, remember not to fantasize about turning losses into profits; being overly eager will only deepen your predicament. Honestly averaging down and preserving your capital is the way to ensure long-term survival.

2. A calm surface can hide a big wave behind.

The cryptocurrency market may seem calm on the surface, but there are undercurrents. Do not be misled by small increases; stay alert and beware of the upcoming large fluctuations.

3. After a significant rise, there must be a correction; the K-line will form a triangle over several days.

When coin prices soar, do not get overly excited. Because after this, there will inevitably be a correction. Look at the K-line; isn’t it just an equilateral triangle drawn over several days?

4. Buy on the decline, not on the rise; sell on the rise, not on the decline; acting against the market is heroic.

When buying coins, choose the time when they are declining; sell when they are rising. Going against the trend can lead to unexpected victories.

5. Do not sell on high, do not buy on a plunge; do not trade in a sideways market.

When coin prices rise, do not rush to sell; do not rush to buy on a plunge. During sideways movements, you should be even more disciplined and observe the changes.

6. In an uptrend, look for support levels; in a downtrend, look for resistance levels.

When prices are rising, pay attention to support levels to prevent pullbacks. When prices are falling, keep an eye on resistance levels for potential buying opportunities.

7. Over-leveraging is a major taboo; stubbornness is unwise; know when to stop amid constant changes; be at ease with entry and exit.

Never operate with a full position or go all in. The cryptocurrency market is unpredictable; know when to take profits and enter and exit calmly. Observing changes can help seize the best opportunities.

8. Trading cryptocurrencies is about mindset; greed and fear are major harms.

Be cautious when chasing rises and falls; remain calm and composed. In cryptocurrency trading, mindset is crucial. Greed and fear are our greatest enemies; avoid chasing highs and lows and maintain a peaceful mindset.