Cryptocurrency Insights

After several years of navigating the cryptocurrency market, experiencing countless ups and downs, I have summarized my insights from these years into eight maxims.

1. Skillfully Use Morning Trends: In the morning, the market sentiment is at its purest. If the price drops significantly, don’t panic; this may be a good opportunity to pick up bargains. If the morning sees a rapid surge and a large increase, don’t be greedy; take the opportunity to sell for profit and secure your gains.

2. Master Afternoon Strategies: If a sudden surge occurs in the afternoon, don’t be swept away by the excitement and follow the trend to buy in, as this is usually just a false rally, and buying at high levels can be risky. Conversely, if the afternoon sees a significant drop, stay calm and observe for a while; the next day, find the right low point to enter, which often leads to acquiring low-cost assets.

3. Maintain a Steady Mindset During Declines: If you wake up to see a significant drop in prices, don’t rush to cut your losses. The market changes rapidly, and early morning fluctuations are often just illusions. If the market becomes stagnant with no fluctuations, don’t be overly anxious; it may be better to take a break, conserve energy, and wait for opportunities.

4. Strictly Adhere to Trading Principles: If the coins you hold haven’t reached your expected high, don’t sell them off easily; making a small profit is still a loss. If the price hasn’t fallen to your psychological level, hold back and don’t impulsively buy in to avoid catching the bottom at halfway down. During sideways phases, where the market trend is chaotic and direction unclear, trading at this time is akin to blindfolded exploration, so it’s better to observe from the sidelines.

5. Operate Based on Candlestick Patterns: Buy on bearish candles and sell on bullish candles; this is a classic strategy. A bearish candle indicates a price correction and cheaper assets, making it a good time to buy. A bullish candle signifies a short-term upward trend, so sell at a high to secure profits.

6. Breakthrough with Contrarian Thinking: To stand out in the cryptocurrency world, sometimes you need to go against the tide. When everyone is fervently chasing, be more calm; when panic selling occurs, be more decisive and dare to act contrary to the crowd, as this allows you to find niche opportunities for wealth outside mainstream trends.

7. Endure the Pain of Consolidation: When prices consolidate at high or low levels for an extended period, it can be unbearable. At this time, don’t be swept away by anxiety and act rashly; maintain your patience and composure. Wait until the trend becomes clear, whether it is an upward breakout or a downward dip, before making a full commitment.

8. Seize the Final Surge: After a long period of sideways movement at high levels, if there’s another upward push, don’t hesitate; this is likely the final frenzy. Sell in a timely manner to secure your profits, or you risk losing your gains, akin to a cooked duck flying away.