The first point is that, in any case, you must preserve your life force, meaning do not get liquidated.
Therefore, setting a stop-loss point is necessary. Do not blindly increase your margin, as this will likely only lead to greater losses.
As long as you are alive, there will be opportunities for profit.
Opportunities for profit in the market always exist; do not think about getting rich quickly. Prioritize survival, then look for buying points.
Leverage should not be set too high, generally kept below 20x, and find suitable profit-taking and stop-loss points for yourself.
Successful cryptocurrency investing 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. Risk management is vital in cryptocurrency investing; investors should develop appropriate investment strategies based on their risk tolerance and investment goals, and take suitable 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 trades should not be too high; observe more and act less, looking for opportunities.
Set profit-taking points; do not dream of making 100% on a single trade. Even if you already have a 30% profit, you could be wiped out in a big dragon's movement.
I refer to the K-line chart that rises or falls rapidly in a short period as a big dragon, with an upward movement called a rising dragon and a downward movement referred to as a hidden dragon. A big dragon often has fluctuations of 2 to 3 points, or even more; with 20x leverage, that translates to 40% to 60%, and there have even been instances of a 130% increase in just a few minutes.
Still, the market always has profit opportunities; do not think about getting rich in one go.
We must look for profit opportunities while ensuring capital preservation, rather than blindly going all-in and betting for a double.
This is no longer trading cryptocurrencies; it's gambling on high or low.
Turning cryptocurrency trading into gambling is the worst taboo.
Without any risk control, your assets could shrink by 90% after several rounds of confrontation.
Successful cryptocurrency investing requires a significant amount of time and effort to research, monitor the market, and adjust investment strategies. If you do not have enough time and energy, you may miss market opportunities or make unwise investment decisions.
The third point is that when buying and selling, one should follow the trend, but also not blindly trust one's judgment, especially when it contradicts your initial assessment.
When prices are continuously falling, you insist on believing it will reverse soon, so you buy heavily, only to find that prices keep dropping.
Some people see prices continuously declining and immediately choose to short.
As a result, both outcomes may not turn out well.
Why is it that one chooses long and the other chooses short, yet both do poorly?
Because this kind of market condition is unlikely to occur just once.
And each time this situation arises, the outcome is different.
Whether choosing short or long, if there is a significant loss (referring to hitting the stop-loss point) during one market movement, the resulting loss will take a long time to recover.
So when encountering extreme one-sided market conditions, whether continuously rising or falling, it is best to wait and observe first, rather than participating blindly.
If you must participate, you can set a smaller profit-taking point and make a small investment. When participating, also choose to buy along with the trend, not against it.
For example, if there is a continuous decline, set a small profit-taking point for shorting.
If you sense that the situation is wrong, close your position immediately and wait for a new pattern to form.
