Understand rapid increases and slow declines, don't be a high-position buyer!
Understand the rapid rises and slow declines in the cryptocurrency market, and stop being a buyer at the peak.
Many people in the crypto world always think about selling at the highest point during a bull market and buying at the lowest point during a bear market. But in reality, after the market moves, everyone only knows whether it was a bull or bear market; during the process, no one can accurately judge.
In reality, the only two things you can control are: when to buy, how much to buy; when to sell, how much to sell. Everything else is uncontrollable.
There is a particularly obvious rule in the crypto world called rapid rise and slow decline.
You see Bitcoin rise from 15,000 to 100,000, it seems like it has increased for a long time, but the real rapid increase only lasts for a few days, most of the time it is fluctuating sideways. By the time you want to chase, the market has already taken off, and you can't get on board at all.
On the contrary, when it declines, it is particularly 'gentle,' slowly dropping, bit by bit, which is quite torturous. The most common situation is that when it rises, people are reluctant to sell, and when it declines, they fantasize about a rebound, resulting in deeper losses.
For example, if you bought coins for one million and it rose to three million but you didn't sell, then it dropped to 270,000 thinking it could come back. When it drops to 250,000, your mindset starts to adjust, and when it drops to 200,000, you are still waiting for a rebound. In the end, when you are left with just over one million, you may not even have the courage to cut losses.
This isn't about bad luck; it's about being trapped by the operators. They can't sell everything at once, or the price would crash. So they use fluctuations and small rebounds to sell off gradually, while also using various positive news to assist. By the time you think the market is stable, they have almost sold off their holdings.
This is also why beginners rarely make money in their first round of market movements. Only after experiencing losses and real crashes do they understand that the market isn't just about luck; the most important things are awareness and risk consciousness.
Trading cryptocurrencies is actually trading human nature. People want to make quick money, so the market provides a rapid rise to satisfy that fantasy; people fear losing money and refuse to recognize losses, so the market slowly declines to consume their confidence.
To survive in this market for a long time, remember a few points:
First, don't always think about bottom fishing and top escaping; making profits in the middle is already great.
Second, just because something rises sharply doesn’t mean you should chase it; be more cautious with slow declines.
Third, be brave enough to take profits as well as losses; controlling your position is always the most important.
Understanding this logic, not being blind or following the crowd, you can gradually find your own rhythm in the risky cryptocurrency market.
