Cryptocurrency Survival Rules: Eight Iron Laws to Teach You Rational Investing
In the cryptocurrency world, wealth myths are never lacking. A predecessor entered the market with a capital of 100,000 yuan and now boasts a market value of 42 million. He emphasizes that in this seemingly chaotic market, as long as you manage your emotions well, you can turn it into a "cash machine." In fact, trading cryptocurrencies doesn’t have to be complicated; mastering simple and effective methods often leads to substantial rewards. The following eight practical rules will help you navigate the cryptocurrency world steadily.
Bitcoin is Paramount: Bitcoin is the "anchor" of the cryptocurrency world. Most altcoins and tokens follow its fluctuations, with only a few, like Ethereum, occasionally showing independent trends. Keeping a close watch on Bitcoin is crucial for grasping the cryptocurrency market's key movements.
Seize Gold Trading Points: From 24:00 to 1:00 the next day, most global trading markets enter a low volume period, making price fluctuations hard to predict, yet hidden opportunities abound. Investors can place extremely low buy orders or ideal sell orders in advance, potentially allowing them to "pick up bargains" or "earn effortlessly."
Pay Attention to the Inverse Relationship between USDT and Bitcoin: The prices of USDT and Bitcoin often move inversely. When USDT rises sharply, Bitcoin may face a risk of a sharp decline; conversely, when Bitcoin rises, it is a good time to buy USDT. Utilizing this pattern can lead to clever positioning.
Stay Updated on Financial News: Policies from central banks of various countries, U.S. financial dynamics, and statements from capital moguls significantly impact the cryptocurrency world. The government's regulatory attitude directly influences market trends, while adjustments in financial policies and remarks from figures like Musk and Buffett can trigger substantial price fluctuations. Investors must keep a close eye on these developments.
Capture Key Trading Hours: Every day from 6 to 8 AM can serve as an important basis for judging the rise and fall of cryptocurrency prices and for buying and selling. If the price continues to rise in the first half of the night, consider selling; if it continues to fall, you may buy or average down. At 5 PM, as U.S. investors become active, significant fluctuations in the cryptocurrency market may occur, warranting focused attention.
Beware of "Black Friday": The cryptocurrency world is known for its "Black Friday" phenomenon, where prices often decline on Fridays, though this is not absolute. Investors should pay attention to the day's news and operate cautiously.
Trading Volume is Key: For cryptocurrencies with a certain level of trading volume assurance, even if prices fall, there is no need to panic excessively. Patiently holding or appropriately averaging down can usually lead to recovering costs and making profits in the short term, of course, excluding junk coins.
Reject Frequent Trading: In spot investment, long-term holding often yields higher returns than frequent buying and selling, requiring investors to possess sufficient patience and self-discipline. For instance, the author bought Dogecoin at a price of 0.029 and held it long-term, achieving over 30 times the return.
After ten years of trading cryptocurrencies, I have consistently focused solely on spot trading, avoiding contracts, and achieved a return rate of 1.3 times. Although not astonishing, it is stable. In the cryptocurrency world, knowledge and understanding determine the boundaries of wealth, and a good mindset is key to success. In the face of price fluctuations, staying calm and avoiding blind chasing of rises or falls, while securing profits, ordinary people can carve out their own wealth paths in the cryptocurrency world.
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