Key Points for Retail Investors in the Cryptocurrency Market, Shared with Everyone!
1. Keep a Close Eye on Bitcoin Trends
In the cryptocurrency market, Bitcoin often leads the direction of price fluctuations. While Ethereum can sometimes perform independently, altcoins are mostly influenced by it.
2. Pay Attention to the Relationship Between Bitcoin and USDT
Bitcoin and USDT often move in opposite directions. When USDT rises, be cautious of Bitcoin falling; when Bitcoin rises, it is an opportunity to buy USDT.
3. Seize Trading Opportunities in the Early Morning
From midnight to 1 AM, price spikes can easily occur. Domestic crypto enthusiasts can place low price buy orders for desired coins before sleeping and high price sell orders for potential surprise trades and profits.
4. Observe Morning Price Trends
From 6 AM to 8 AM every day is a critical period for determining whether to buy or sell. If there is a continuous decline from midnight to 6 AM, and it is still dropping, it’s advisable to buy or add to positions, as there is a high chance of a rise that day. If there is continuous growth, and it is still rising, it’s advisable to sell, as there is a high probability of a drop that day.
5. Pay Attention to Afternoon Price Fluctuations
At 5 PM, special attention is needed, as due to time differences, American traders begin to operate, which may trigger price fluctuations, with many significant rises and falls occurring at this time.
6. Be Cautious of “Black Friday”
There is a saying about “Black Friday” in the crypto world; while significant drops can occur on Fridays, there can also be substantial rises or sideways movements, so stay informed about the news.
7. Be Patient with Declining Coins
If a coin with decent trading volume drops, don’t worry; holding patiently can allow you to break even. It could be as short as 3 or 4 days, or as long as a month. If you have extra funds, you can buy in batches to speed up breaking even, unless it’s a worthless coin.
8. Stick to Long-term Spot Trading
Engaging in spot trading, holding the same coin long-term with less trading activity, often yields greater returns than frequent trading; it all depends on your patience.
9. Pay Attention to External Influencing Factors
The cryptocurrency market is volatile and affected by various factors, such as countries' attitudes towards cryptocurrencies, which can lead to declines if negative; US financial policies; and influential figures’ opinions on cryptocurrencies, like statements from Musk. Stay alert to financial news.
10. Maintain a Good Trading Mindset
A good mindset when trading cryptocurrencies is crucial; don’t panic during significant drops, and don’t become overly confident during large rises; securing profits is essential.
