Insights from these days in the crypto world!

For friends who just entered the market

1. Don’t get too attached to hot coins. When altcoins have made enough profits, it's time to switch. Trying to ride the wave from start to finish is bound to be a lost cause. The reason is simple: altcoins cannot keep rising indefinitely. Once they peak, it's time to switch; otherwise, you'll just end up back where you started, wasting your efforts. For example, the past FIL and LUNA.

2. When prices are high and stable, get ready to sell; when prices are low and stable with new lows, good opportunities are likely to arise. When the price creates new highs after a period of stability at high levels, be cautious of market manipulation. When it's time to reduce your holdings or exit, don’t hesitate; when the price stabilizes at low levels and then creates new lows, but rebounds quickly, it’s likely the last shakeout by the main players. At this point, stay firm and don’t waver.

3. When market conditions are poor, prices will rise against the trend, and small upward movements can lead to significant gains. Conversely, in a good market environment, prices will slightly decline against the trend, and small declines can lead to significant losses.

4. Only add to your position when you are making a profit, and don’t average down when you are losing. This may break many old beliefs. We should increase our position when the price breaks above previous highs, not when it is continuously falling. Averaging down in a downward trend will only lead to greater losses, eventually leaving you unable to act. You must cut losses and let profits run.

5. As long as you identify the bottom price, there will generally be a rise of two steps forward for every one step back. At this time, don’t doubt; a big surprise usually follows. Particularly during a trending rise, the market often lifts while shaking out weak hands, so don’t exit too easily.

6. Top players first look at sectors, second-tier players focus on individual coins, third-tier players look at indicators, and bottom-tier players just gamble. This means that when we want to buy a coin, we should first look at the sector. Only by engaging with hot sectors can we attract more attention and increase our win rates. Next, we look at the tokens. Relying solely on indicators is for beginners; those who look at everything are gamblers.

7. Indicators change with volume and price, so volume and price are the roots of indicators. If you ignore volume and price and trust indicators, you will frown while trading. Indicators are calculated based on price and trading volume, so true technical analysis requires observing volume and price. Price increases require substantial capital to drive them.