There aren't that many twists and turns in cryptocurrency trading; just understand a few key points because the crypto market has gone from debt to recovery. Now I'm sharing some insights with my brothers.
Don't get attached to altcoins; don't be greedy with hot coins. Altcoins have their cycles; after making a profit, you need to swap out in time, or you'll drop back to square one, and all your hard work will be in vain. FIL and LUNA are examples.
Key signals after sideways trading:
If there's a high-level sideways trend followed by another rise, be wary of false signals and consider reducing your position or exiting;
If there's a low-level sideways trend that breaks new lows and then quickly rebounds, it’s often the main force washing out positions, so you should hold your coins firmly.
Recognize strength and weakness in the environment:
When the market is bad, if it can rise while sideways, it shows strength;
When the market is good, if it can remain sideways or even slightly dip, you need to be wary of the risk of a pullback.
Only add to positions when profitable, not when losing.
The core of position management is to add to positions in line with the trend, not to keep adding when losing; otherwise, you will get trapped. You need to cut losses and let profits run.
Don't easily exit during a trend.
Once you identify a bottom, prices tend to rise in a 'two steps forward, one step back' manner. Fluctuations along the way are often just washouts. You need to hold your conviction to catch the main upward trend.
Choose the right direction and targets:
Top players look at sectors, second-tier players only look at coins, third-tier players look at indicators, and novices rely on luck. Focusing on hot topics attracts capital attention, boosts popularity, and increases win rates.
The core of technical analysis is volume and price.
All indicators are based on volume and price; true analysis must focus on the relationship between trading volume and price. Ignoring volume and price while only trusting indicators can easily lead to misjudgments.
Go with the trend: look for support when rising, look for resistance when falling.
In an upward trend, getting near the support line is a good point to add positions; in a downward trend, encountering resistance and rebounding is an opportunity to short or exit.
There are many opportunities in the cryptocurrency market, but few rules. Being precise, disciplined, and quick to act are the key abilities for long-term survival. May you not be blind, not greedy, and profit steadily. Surviving in the crypto world is more important than getting rich quickly.