Nine things to know when trading cryptocurrencies and the highest realm.
There are nine things you must understand in the cryptocurrency circle.
First, when there is a continuous drop during the day, the best time to buy is after 9:30 PM. After a significant drop during the day, around 9:30 PM is often when the foreign market starts to rally, so seize this opportunity to buy at the bottom.
Second, do not chase the high when there is a significant rise during the day; it is likely to correct at night, so be cautious when chasing highs.
Third, the key signal for buying or selling is the spike; the deeper the spike, the stronger the signal to buy or sell.
Fourth, when good news is fully priced in, it becomes bad news. Before major meetings or the release of good news, cryptocurrency prices usually rise, but often drop after the news is out.
Fifth, be cautious of community recommendations; reverse operations are safer. When a community or group chat is frantically recommending a particular cryptocurrency and it sounds too good to be true, it is likely a trap; reverse operations might be wiser.
Sixth, overheating means short. When a cryptocurrency is being speculated on too hotly, consider shorting it; the higher the speculation, the greater the risk of correction.
Seventh, if a community friend recommends a cryptocurrency that you are not interested in, it might actually be an opportunity; consider trying with a small amount.
Eighth, heavy positions can lead to liquidation. When you hold a large position, the risk of liquidation is extremely high, as exchanges will pay close attention to you; large holdings are easy targets for liquidation.
Ninth, after a stop-loss, the price will usually drop. Once your short position's stop-loss is triggered, the price of the cryptocurrency often falls, because the market will not let you off easily or let you escape; the downward trend will not easily end.
In summary, never play contracts with heavy positions, manage your position well, and do not rush to the top floor. In life, everything can start over; do not be overly greedy. Maintain a good mindset; slow is fast, and fast is slow. The highest realm of trading cryptocurrencies is to have no attachment to them, simple and pure.
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