The first point is that no matter what, you must preserve your living capital, which means do not get liquidated.
Therefore, setting stop-loss points is necessary; do not blindly increase margin, as this will likely lead to greater losses.
Living is necessary to have chances for profit.
Opportunities for profit always exist in the market; don’t think about getting rich quickly, prioritize survival, then look for buying points.
Leverage should not be too high, generally controlled below 20 times; find suitable take-profit and stop-loss points for yourself.
Successful cryptocurrency investment requires an in-depth understanding of the market and good research capabilities. Understanding the fundamentals, technology, team, and market trends of projects is crucial for making informed investment decisions. In cryptocurrency investment, risk management is essential; investors should formulate appropriate investment strategies based on their risk tolerance and investment goals, and take appropriate risk control measures.
The second point is to control risks.
Absolutely, absolutely, absolutely do not operate with a full position.
This also includes taking all funds to use as margin.
Control the trading amount to about 1% to 3% of the position each time.
The frequency of trades should not be too high; observe more and act less, looking for opportunities.
Set take-profit points; don’t dream of making over 100% on a single trade; even if you already have 30% profit, it can still be wiped out by a big drop.
I call the candlestick chart that rises or falls sharply in a short time a 'big dragon'; upward is called 'rising dragon', downward is called 'hidden dragon'. A big dragon often has fluctuations of 2 to 3 points, or even more; 20 times leverage means 40% to 60%, and there have been instances of a 130% increase in a few minutes.
Still, the same saying, there are always profits in the market, don't think about getting rich all at once.
We must seek profit opportunities under the premise of preserving capital, rather than blindly going all-in and betting on a doubling.
This is not trading coins; it is gambling on high or low.
Turning trading coins into gambling is the biggest taboo.
Without any risk control, after a few rounds of trading, your assets could shrink by 90%.
Successful cryptocurrency investment requires a significant amount of time and effort for research, market monitoring, and adjusting investment strategies. Without enough time and energy, one may miss market opportunities or make unwise investment decisions.
The third point is to trade in the direction of the trend, but do not blindly trust your own judgment, especially when things do not align with your expectations.
The price continues to drop, but you insist on believing it will reverse quickly, so you buy a lot, only to find the price keeps falling.
Some people see prices continuously dropping and immediately choose to go short.
As a result, both outcomes may not be very good.
Why is it that one chooses long and another chooses short, yet both are not good?
Because such market conditions will definitely not occur only once.
Each time such a situation occurs, the outcomes can be different.
Whether choosing long or short, if a blowout occurs in a single market move (referring to hitting the stop-loss point), the resulting loss will take a long time to recover.
So, when encountering extreme one-sided market conditions, whether rising or falling continuously, it is best to wait and observe, rather than participate blindly.
If you must participate, you can set a smaller take-profit point and participate with a small amount. When participating, also choose to buy in the direction of the trend, not against it.
For example, if the price keeps falling, set a small take-profit point to go short.
If you notice something is wrong, immediately close the position and wait for a new pattern to form.
The above content answers the question of what is the most stable way to make money in the cryptocurrency circle.
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