Eight Personal Suggestions for Making Money by Trading Cryptocurrencies, Hope They Help Everyone!
1. HODL Method (Long-Term Holding)
Applicable Market: Bull and Bear Markets
Strategy: Select high-quality cryptocurrencies (e.g., BTC, ETH), buy and hold for the long term (at least 6 months to 1 year), ignoring short-term fluctuations.
⚠ Difficulty: Requires extreme patience; beginners may frequently trade due to short-term price changes.
2. Bull Market Pullback Buying Method (Trend Following)
Applicable Market: Bull Market
Strategy: Use no more than 20% of your position to choose altcoins ranked 20-100 by market cap, buy during pullbacks, and switch to the next oversold coin after a 50% increase.
⚠ Risk: If you choose the wrong coin, you may be stuck; ensure a bull market environment to avoid being trapped.
3. Rotation Switching Method (Sector Rotation)
Applicable Market: Bull Market
Strategy: Funds flow like an hourglass, BTC, ETH rise first → mainstream coins (like LTC, SOL) follow → small coins catch up.
Operation: After large coins rise, switch to the next tier of coins that have not yet started.
4. Pyramid Bottom Buying Method (Incremental Accumulation)
Applicable Market: Plummeting Market
Strategy: Buy in increments (e.g., buy 10% at 80% drop, 20% at 70%, 30% at 60%, 40% at 50% drop) to lower the average price.
⚠ Key: Need to determine if the market has bottomed to avoid over-accumulating too early.
5. Moving Average Trading Method (Technical Trading)
Applicable Market: Volatile or Trend Market
Strategy:
Buy: MA5 crosses above MA10 (Golden Cross)
Sell: MA5 crosses below MA10 (Death Cross)
⚠ Suitable for: Those with a basic understanding of candlestick charts to avoid frequent false signals.
6. Grid Accumulation Method (Buy Low Sell High)
Applicable Market: Volatile Market
Strategy: For the long-term coins you are optimistic about, set a buying price (current price × 90%) and a selling price (current price × 110%) to repeatedly profit.
Advantage: Suitable for volatile markets, increases the number of holdings.
7. IEO Compound Interest Method (New Project Arbitrage)
Applicable Market: Bull Market or Popular IEO
Strategy: Participate in new coin subscriptions at exchanges, withdraw principal after a 3-5x increase, and roll profits into the next IEO.
⚠ Risk: New coins may break even; need to select quality projects.
8. Swing Accumulation Method (High Volatility Coins)
Applicable Market: Volatile or Trend Market
Strategy: Choose coins with high volatility (e.g., ETC), accumulate in batches during declines, and sell for profit after rebounds.