Master these 10 fundamental rules, and you'll be on the path to steady growth in the crypto market:
1. Watch the Dips After Strong Trends:
If a strong-performing cryptocurrency drops for 9 consecutive days while still at a relatively high level, pay close attention—it could present a buying opportunity.
2. Take Profits After Consecutive Gains:
If a coin rises for two days in a row, it’s often wise to start reducing your position to lock in profits.
3. After a Sharp Rise, Expect a Pullback:
If a cryptocurrency surges more than 7% in a single day, expect a pullback the next day. Be cautious and observe.
4. Enter After the Bull Run Ends:
Avoid chasing hype. Only enter the market after a major rally has cooled down.
5. Low Volatility Signals Potential Change:
If a coin stays flat with low volatility for three days, monitor it for another three. If nothing changes, consider reallocating to more promising assets.
6. React Quickly to Weak Rebounds:
If a coin fails to recover the previous day’s cost on the next trading day, consider exiting immediately.
7. Ride the Wave—But Exit Wisely:
On the gainers list, patterns often repeat. If a coin rises for two days, a dip may be a good entry point. The fifth day after this pattern is often a solid exit opportunity.
8. Volume is the Market’s Pulse:
Always monitor trading volume. A breakout at low prices with increased volume signals potential growth. But if high prices come with a volume spike and price stagnation, it's a sign to exit.
9. Trade With the Trend:
Focus only on coins in an upward trend:
A rising 3-day moving average signals a short-term uptrend.
A rising 30-day MA suggests a medium-term rally.
A rising 80-day MA marks a strong long-term uptrend.
A rising 120-day MA signals a very solid long-term bullish trend.
10. Discipline and Patience Over Capital Size:
Small capital doesn't mean small potential. Stick to your strategy, keep emotions in check, and wait patiently for the right moments.
Final Advice:
Don't trade crypto full-time unless you're highly experienced. And never use borrowed money—protect your capital first, grow it wisely second.