The Honest Words of a Veteran in the Crypto World (For Friends Just Entering the Field)

In the crypto world, after much struggle, I have summarized a few hard-earned lessons that I hope can help you:

Take profits on hot/altcoins: Hot coins and altcoins should be sold when you make a profit! Fantasizing about holding until the end often leads to disappointment. They cannot keep rising indefinitely; once you trade them, you should switch, or else you may fall back to where you started. FIL and LUNA are bloody lessons!

Be cautious during high and low price consolidations:

Is the price consolidating at a high level before another rise? Be careful of the main force trying to lure you in! This is a signal to reduce positions or exit; don't hesitate.

Is the price consolidating at a low level and then quickly rebounds? This might be the main force’s final shakeout! At this moment, stay calm; it could be a good opportunity.

Understanding counter-trend coins:

When the market is bad: If the coin price is consolidating against the trend → it may rise; if it rises slightly against the trend → it could rise significantly.

When the market is good: If the coin price is consolidating against the trend → it may drop slightly; if it drops slightly against the trend → it could drop significantly.

Rules for increasing positions:

Only add when making money! Increase your position only when the coin price breaks past previous highs.

Never average down when losing! Averaging down during a decline is a bottomless pit; the more you add, the more you lose, eventually becoming immobilized. The core principle is to cut losses and let profits run!

Be patient when starting from the bottom: After confirming the bottom, price increases often follow a “two steps forward, one step back” rhythm. Don’t easily doubt and exit! A trending rise is a process of pulling and washing; holding on is essential to reap later surprises.

Choosing coins by level:

Top players focus on sectors: Only engage with popular sectors that have momentum for a higher win rate.

Second-tier players focus on individual coins: Concentrate on a single coin.

Third-tier players rely on indicators: Depend on technical indicators.

Bottom-tier players are pure gamblers: They lack any strategy. Remember: sector > token > indicator!

Volume and price are the foundations of indicators: All indicators stem from volume (trading volume) and price! If you only trust indicators without considering volume and price, trading will inevitably lead to frustration. Price increases must be supported by real money (volume)!

Trend operations focus on key lines:

Upward trend: Focus on support lines. Pullbacks to support are good low-buy opportunities.

Downward trend: Focus on resistance lines. Rebounds to resistance are signals to short or exit.

(The crypto world is fraught with danger; discipline and understanding are your protective charms!)