7 Key Insights for Making Money in Cryptocurrency: Transitioning from Speculator to Steady Profiteer
There are many stories of sudden wealth in the crypto world, but those who truly make money often do so not by luck, but through these 7 lessons. They are practical rules summarized by many seasoned players after experiencing numerous market fluctuations.
1. Stay Cash When the Trend is Unclear
During market volatility, it's easy to make directional mistakes. When the trend is unclear, not trading is the safest choice. Controlling your desires and waiting for a clear direction is more effective than frequent trial and error.
2. Quick In and Out with Hot Coins
When hot projects emerge in the market, you can participate, but you must set stop-loss and take-profit levels. Hot trends come quickly and fade just as fast; greed will trap you if you lag behind the trend.
3. Avoid Frequent Trading When Major Trends Arise
When a trend starts, frequent in-and-out trading will only cause you to miss out on the main profit zones. Patiently holding after establishing a position and reducing short-term trades is key to achieving large segment gains.
4. Be Cautious of Selling Risks When Large Bullish Candles Appear
When prices suddenly surge with high trading volume, it often signals that the market maker is offloading. Failing to take profits after a significant bullish candle can lead to being stuck at high positions.
5. Moving Averages are Basic Judgment Tools
Using moving averages to determine buy and sell points is a conventional yet practical method. For example: establish positions when the 5-day and 10-day moving averages cross upward, and take profits when they cross downward. Avoid over-reliance on subjective judgments.
6. Avoid Counter-Trend Operations
Do not guess the top in an upward trend, and do not easily try to catch a falling knife in a downward trend. Following the trend is the most fundamental and effective principle in trading. Counter-trend operations usually carry high risks.
7. Gradual Entry and Strict Stop-Loss
Do not buy heavily all at once; building positions in batches can effectively smooth out costs and reduce risks. Additionally, setting stop-loss levels is a necessary measure to protect your capital.
The risks in the cryptocurrency space are high; those who can profit long-term are not the ones who trade most frequently, but those who are patient and understand risk control. Avoid pitfalls, stay calm, and implement these 7 lessons to truly move beyond the 'speculator stage'.
