Summary of Six Core Strategies for Profit in the Cryptocurrency Market
1. Follow Irreversible Trends Closely Only participate in the main trends clearly defined by the market, respect market facts, and do not challenge the trend direction. Regardless of being long or short, focus on the market movements that the major players are also following, eliminate uncertain fluctuations, and determine the direction through trend confirmation (such as continuous increases or decreases in price highs/lows). Once a trend reverses, immediately cut losses to avoid counter-trend speculation.
2. Eliminate Frequent Trading Reduce ineffective operations and adopt a “hunter-style” strategy to wait for high-probability opportunities. Improve timing accuracy through cycle resonance (such as determining direction on weekly charts and finding entry points on daily charts), keeping a single trial-and-error position controlled within 5% of total funds. After making a profit, expand profit space through trailing stop losses, avoiding depletion of principal due to transaction fees and emotional fluctuations.
3. View Technical Indicators Rationally Acknowledge the lagging nature of technical indicators and do not rely on a single tool for decision-making. Combine multiple indicators for verification (such as using MACD to determine trends + RSI to identify overbought/oversold conditions), but base judgments primarily on price movements. For example, when a golden cross appears, observe whether the volume simultaneously increases to avoid chasing after price spikes.
4. Abandon Cost Price Thinking Forget the buying cost after establishing a position, and operate entirely based on real-time market trends. When going long, cut losses if the price falls below key support levels (such as moving averages or previous lows); when in profit, use a pullback below previous highs after reaching new highs as a signal to take profit. Avoid expanding losses due to the desire to “break even” or “earn more.”
5. Invest with Spare Money Strictly adhere to the “affordable loss” principle, ensuring that invested funds do not affect essential living expenses. Beginners can start by validating strategies with small amounts of 5%-10%, gradually increasing positions as they mature, and firmly avoid borrowing to trade cryptocurrencies to reduce psychological pressure on decision-making.
6. Withdraw Profits Timely Set fixed withdrawal rules (such as withdrawing 30%-50% of each profit) to convert digital gains into actual funds. For example, if a profit of 10,000 yuan is made, withdraw 3,000 yuan to lock in profits, while continuing to participate in the market with the remaining funds, avoiding the risk of account funds fluctuating with market conditions.
Core Logic: The essence of profit in the cryptocurrency market is “capturing trends under controlled risk.” The six strategies build a system around “following trends, timing, risk control, and mindset,” reducing the impact of human weaknesses on investments through rule-based operations, achieving long-term stable returns.
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