If you’re looking to build wealth gradually through crypto trading, mastering the basics of market behavior is key. Over time, I’ve found these 10 rules extremely helpful for improving decision-making and reducing unnecessary risks. This post is for educational purposes only and not financial advice.
1. Track Sustained Declines: If a fundamentally strong cryptocurrency drops for 9 consecutive days while still at a high level, it’s worth monitoring closely — this could present a reversal opportunity.
2. Profit Booking is Key: If any coin rises for two straight days, it’s often smart to reduce your position and lock in partial profits.
3. Beware of Sharp Rallies: A daily rise of 7% or more can often lead to a short-term pullback the next day. Be patient and observe before jumping in.
4. Don’t Chase Momentum: Wait until a previous bull trend ends before entering. Buying into strength too late is one of the most common trader mistakes.
5. Watch for Low Volatility: If a coin trades with very low volatility for three days, monitor for three more. If no movement occurs, consider reallocating your capital.
6. Respect Recovery Failure: If a cryptocurrency fails to recover to the previous day’s cost price, exit the position instead of holding and hoping.
7. Understand Market Psychology: Often, if three coins are in the gainers list, that number can rise to five or seven. A coin rising for two consecutive days often sees a third-day dip, with the fifth day typically being a good sell zone.
8. Volume Tells the Truth: Volume is the heartbeat of crypto markets. If price breaks out from a low range with rising volume — take note. But if volume increases while price stalls at high levels — it may be time to exit.
9. Trade the Trend: Focus only on coins in a clear uptrend. A 3-day moving average turning up often signals a short-term rally. 30-day MA indicates a mid-term move, 80-day shows a stronger trend, and 120-day uptrend hints at long-term growth.
10. Small Capital Can Grow: You don’t need big money to start. What you need is discipline, a strategy, and patience. Avoid full-time trading unless you’re experienced — and never use borrowed money in crypto trading.
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📌 Reminder: The crypto market is volatile and unpredictable. These rules are not guaranteed to work in all conditions, but following them can help bring structure and reduce emotional decision-making.
Let me know what rules have worked for you!
