Eight Essential Rules for Cryptocurrency Trading, A Must-Read!
Only masters in the crypto world understand the knowledge of wealth; these eight rules should not be missed.
1. Averaging down to preserve capital, seeking profit is greed.
When trading cryptocurrencies, there will always be a few coins that get stuck. At this time, remember not to fantasize about turning losses into profits; seeking quick gains will only trap you deeper. Honestly averaging down and preserving your capital is the way to ensure long-term survival.
2. A calm surface hides a big wave behind.
The cryptocurrency market may seem calm on the surface, but there are undercurrents flowing. Do not be misled by small price increases; remain alert and beware of the upcoming big fluctuations.
3. After a big rise, a correction is inevitable; K-lines often form a triangle over several days.
When the price of a coin skyrockets, don't get overly excited. A correction will surely follow. Look at that K-line; isn't it just an equilateral triangle drawn over several days?
4. Buy on the way down, not on the way up; sell on the way up, not on the way down; only by going against the market can one be a hero.
When buying coins, choose to do so during a downward trend, and sell when the trend is upward. Going against the trend can lead to unexpected victories.
5. Don’t sell when prices are high, don’t buy when prices drop, and don’t trade during sideways markets.
When prices are high, don’t rush to sell; when they drop, don’t rush to buy. During sideways movements, it’s even more important to hold back and observe the changes.
6. Look for support in an uptrend and resistance in a downtrend.
When prices are rising, pay attention to support levels to prevent losses. When prices are falling, watch for resistance levels to buy at the bottom.
7. Overtrading is a big taboo; stubbornness is undesirable; know when to stop during constant changes; enter and exit freely while observing the market.
Never overtrade or put all your eggs in one basket. The cryptocurrency market is unpredictable; learn to take profits when available and enter and exit freely. Observing changes carefully allows you to seize the best opportunities.
8. Trading cryptocurrencies is all about mindset; greed and fear are great harms.
Be cautious when chasing price fluctuations; maintain a calm and relaxed state of mind. In cryptocurrency trading, mindset is crucial. Greed and fear are our greatest enemies; avoid chasing highs and lows, and keep a balanced mindset.
