In recent years, with the rise of the digital currency market, various cryptocurrencies represented by Bitcoin have emerged like mushrooms after rain, and their roller-coaster-like market trends have drawn attention from the entire market, attracting a large number of investors into the crypto space. However, among these investors, some have made substantial profits while others have lost everything. Therefore, trading skills are especially important for investors. So, how can one quickly learn to trade cryptocurrencies? Below, I will explain in detail how to quickly learn to trade cryptocurrencies. Hopefully, through this article, investors can learn trading skills.
How to quickly learn to trade cryptocurrencies?
Trading cryptocurrencies can be complex or simple. We can simplify complex things, but it is not advisable to overcomplicate simple things, as this may affect decision-making, lead to hesitation, and cause you to miss good opportunities and plans. If you realize you missed out when prices have already risen and then corrected, it’s undoubtedly very passive.
To quickly learn to trade cryptocurrencies, we must first learn to use trading platforms, becoming familiar with buying and selling.
Then, one key point is to learn to read candlestick charts, and if you are a short-term trader, you can build positions during a decline, rather than rushing to buy when you see a rise. For example, if the fall reaches 10%, 20%, or 30%, you can allocate 10% of your capital when it drops a little or continue to wait. After waiting for 15 minutes or 1 hour, when it drops to a certain extent, we can then make our buying plan. During the rise, gradually sell off to form a trading habit.
Chasing high and selling low is a behavior of inexperienced traders, and this is a big taboo. In any case, the cryptocurrency market is also a trading market, and since there are trades, there are naturally both rises and falls.
When it falls, a rebound will naturally occur; this is a market rule and a consensus among traders, and this consensus drives the market's operation.
Then, one key point is to learn to read candlestick charts, and if you are a short-term trader, you can build positions during a decline, rather than rushing to buy when you see a rise. For example, if the fall reaches 10%, 20%, or 30%, you can allocate 10% of your capital when it drops a little or continue to wait. After waiting for 15 minutes or 1 hour, when it drops to a certain extent, we can then make our buying plan. During the rise, gradually sell off to form a trading habit.
Chasing high and selling low is a behavior of inexperienced traders, and this is a big taboo. In any case, the cryptocurrency market is also a trading market, and since there are trades, there are naturally both rises and falls.
When it falls, a rebound will naturally occur; this is a market rule and a consensus among traders, and this consensus drives the market's operation.
Tips for learning to trade cryptocurrencies:
1. Invest with spare money; avoid borrowing or taking loans to trade cryptocurrencies — invest money + invest energy.
2. Strictly filter valuable coins, and create a reasonable capital allocation plan that aligns with reality — Sunny Investment Strategy
3. Averaging down — it is normal to experience pullbacks after entering the market, so you need to allocate your funds reasonably and enter in batches.
4. Refuse to go all in, allocate your positions reasonably, do not put all your eggs in one basket, and effectively reduce risk.
5. Keep your eyes open — stay updated with cryptocurrency news and the latest financial information. The sooner you know, the sooner you understand, and the sooner you can make money.
6. Think in reverse, do not go against the market or the major players, go with the flow and act according to the trend.
7. Open contracts, do not go all in, leverage 20-50, do not easily use 100x leverage, do not seek to get rich overnight, but seek steady profits.
8. Control your revenue well — managing your positions is more important than anything else. If you are not sure, don’t trade easily; if you don’t trade, there is no risk, and you won’t lose money. Take the time to check your assets often to see if they are managed and if the management is reasonable.
9. Know the bottom and top in your heart, do not fear; the cryptocurrency market will only help you grow. The mindset is more important than the operation. Remember the techniques of trading cryptocurrencies, and you won’t worry about not making money!
Finally, I remind investors that before trading cryptocurrencies, you should first study and understand why cryptocurrencies exist. Generally speaking, speculation for quick profits may be the reason many people enter the market, but the deeper meaning of cryptocurrencies is about decentralized financial control, design, and capital settlement. To put it simply, cryptocurrencies are like money with wings; using cryptographic technology, users no longer need to rely on banks but can become their own banks and use free applications on their phones. Therefore, after understanding cryptocurrencies, investors will feel more grounded when entering the cryptocurrency market.
I am a root user, mainly focusing on contracts, with spot trading as a supplement; follow me to see my homepage.