4 Major Ways to Make Money in the Cryptocurrency Market: Master the Following Three to Easily Earn 1
1. Long-term Holding Method: Applicable in Bull and Bear Markets
The long-term holding method is one of the simplest yet most challenging strategies. Choose a few cryptocurrencies and hold them for over six months or a year without any trading actions. Typically, this strategy can yield at least ten times the investment return. However, many beginners find it difficult to stick to this due to price fluctuations, which is the biggest challenge of this strategy.
2. Bull Market Momentum Trading Method: Only Applicable in Bull Markets
In a bull market, use no more than one-fifth of your total funds as idle capital. This strategy is suitable for selecting cryptocurrencies ranked between 20 to 100 in market capitalization, as these coins are usually not stuck for long periods. For example, when an altcoin rises by 50% or more, it can be exchanged for another temporarily declining cryptocurrency, and this cycle continues. If the chosen cryptocurrency gets stuck, remain patient and wait, as bull markets often provide opportunities for unblocking. However, the success of this strategy relies on the quality of the selected cryptocurrencies and the market environment, so beginners should proceed with caution.
3. Capital Hourglass Strategy: Applicable in Bull Markets
In a bull market, capital usually gradually flows from large-cap cryptocurrencies to small-cap cryptocurrencies, a phenomenon akin to a giant hourglass. Price increases typically begin with large-cap leading coins and then gradually pass to other cryptocurrencies.
4. Pyramid Bottom-Fishing Method: Applicable in Predictable Major Drops
This strategy is applicable in situations where a large-scale drop can be predicted. When bottom-fishing, orders can be placed in batches at 80%, 70%, 60%, and 50% of the coin price, using position ratios of one-tenth, one-fifth, one-third, and one-fourth to allocate funds.
Each of these strategies has its advantages and risks, and it is crucial to choose a strategy that fits one's risk tolerance and market environment.
