1. Keep a close eye on Bitcoin movements
Bitcoin is recognized as the "market leader" in the cryptocurrency space, and its price fluctuations often lead the market direction. Although Ethereum can occasionally have its own independent price movements, most altcoins still tend to follow Bitcoin’s lead.
2. Pay attention to the correlation between Bitcoin and USDT
The two often exhibit an inverse relationship: when USDT strengthens, Bitcoin may come under pressure; during a Bitcoin price increase, it is often a suitable time to buy USDT.
3. Utilize the early morning trading window
From 12 AM to 1 AM, ‘spike’ price movements are likely to occur. Domestic investors can place low buy orders and high sell orders for their target cryptocurrencies before sleeping, potentially capturing unexpected trade opportunities.
4. Capture morning price movement signals
The period from 6 AM to 8 AM is crucial for judging the trend of the day: if there is a continuous decline from 12 AM to 6 AM, and it is still going down, consider buying or adding positions, as there is a higher probability of a rebound that day; if there was a prior rise and it is still surging, it is advisable to take profits, as there is a larger chance of a correction that day.
5. Pay attention to afternoon volatility points
Around 5 PM is a key time to monitor due to time zone differences, as the U.S. market begins to become active, potentially triggering price fluctuations. Many extreme market conditions (sharp rises or falls) often occur during this period.
6. Be wary of the 'Black Friday' effect
There is a saying in the cryptocurrency market about 'Black Friday'. Although Fridays can see significant drops, there can also be substantial rises or sideways movements. The key is to closely monitor changes in news on that day.
7. Respond rationally to price declines
For cryptocurrencies with stable trading volumes, there is no need to panic during declines. Most can recover if held patiently (ranging from a few days to a month). If possible, you can gradually increase your positions to speed up recovery, but this excludes 'junk coins'.
8. Stick to a long-term spot trading strategy
When trading spot, holding a single cryptocurrency long-term and reducing trading frequency often yields higher returns than frequent trading. Patience is key.
9. Pay attention to external influencing factors
The fluctuations in the cryptocurrency market are influenced by multiple external factors, such as the cryptocurrency policies of various countries (negative news may trigger a decline), adjustments in U.S. financial policy, and public statements from big names like Elon Musk. It is important to stay updated on financial news.
10. Maintain a stable mindset for trading cryptocurrencies
Mindset is the core of trading cryptocurrencies. Do not panic during a significant drop, and avoid blindly cutting losses; do not be greedy during a substantial rise, and take profits at the right time. Realizing gains is the way to ensure long-term success.
There are people who become wealthy in the cryptocurrency market every day, and there are also those who go bankrupt every day. The difference lies in whether you forge your own path or follow the experienced ones.
