The first point is that no matter what, you must preserve your life force, which means do not get liquidated.
Therefore, setting stop-loss points is necessary. Do not blindly increase margin, as this will likely only lead to greater losses.
Only by staying alive can there be opportunities for profit.
Opportunities to profit in the market always exist; do not think about getting rich quick. Prioritize survival first, then look for buying points.
Leverage should not be set too high; generally, it should be controlled below 20x, finding suitable take-profit and stop-loss points for oneself.
Successful cryptocurrency investment requires a deep understanding of the market and good research skills. Understanding the fundamentals, technology, team, and market trends of a project is crucial for making informed investment decisions. In cryptocurrency investment, risk management is essential. Investors should develop suitable investment strategies based on their risk tolerance and investment goals, and implement appropriate risk control measures.
The second point is also to control risk.
Absolutely, absolutely, absolutely do not operate with a full position.
This also includes using all funds for margin.
Control the amount of each trade to about 1% to 3% of your position.
The frequency of trading should not be too high; watch more and act less, looking for opportunities.
Set take-profit points; do not fantasize about making over 100% from a single trade. Even if you already have 30% profit, you could be wiped out in one Large Dragon.
I refer to the K-line chart that rapidly rises or falls in a short time as a 'Large Dragon.' An upward movement is called 'Rising Dragon,' while a downward movement is called 'Hidden Dragon.' A Large Dragon often has fluctuations of 2 to 3 points or even more; with 20x leverage, that's 40% to 60%. There have even been cases where it rose by 130% in a few minutes.
Still, the same saying applies: there are always profits in the market; do not think about getting rich in one go.
We must seek profit opportunities while ensuring capital preservation, rather than blindly going all in and gambling for a double.
This is no longer trading cryptocurrencies; it's gambling on the outcomes.
Turning cryptocurrency trading into gambling is the biggest taboo.
There is no risk control at all, and after a few rounds of clashes, the assets could shrink by 90%.
Successful cryptocurrency investment requires a significant amount of time and effort for research, monitoring the market, 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 line with the trend but do not blindly trust your own judgment, especially when it contradicts your analysis.
Prices continue to fall, yet you insist that they will soon reverse, so you buy heavily. As a result, you find prices are getting lower and lower.
Some people see prices continuously falling and immediately start to short.
As a result, the final outcome for both may not be good.
Why is it that one chooses long and another chooses short, yet both end poorly?
This type of market situation cannot occur only once.
And the outcomes of each occurrence of this situation are different.
Whether you choose short or long, if there is a burst of orders (referring to hitting the stop-loss point) during a single market movement, the resulting loss will take a long time to recover.
Therefore, when encountering extreme one-sided market trends, whether rising or falling continuously, it is best to observe first and not participate blindly.
If you must participate, you can set smaller take-profit points and participate with a small amount. Also, choose to buy in line with the trend, not against it.
For example, if there is a continuous decline, set a small take-profit point for shorting.
If you find the situation is not right, immediately close your 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.