There are various ways to profit in the cryptocurrency world. Mastering a few core methods can significantly enhance your success rate. Here are five common strategies:
1. Accumulation method (suitable for bull and bear markets)
Core: Select high-quality coins for long-term holding (from six months to several years) and avoid frequent trading.
Challenge: It seems simple, but it actually tests your resolve. Most people panic and change positions due to short-term fluctuations, making it difficult to persist. The potential returns from long-term holding are enormous; there are many historical cases of bull markets yielding tenfold returns.
Key: Choose the right coin and hold on to it.
2. Buy the dip method (only suitable for bull markets)
Core: Use part of your idle funds (e.g., ≤20% of total capital) to rotate operations among altcoins ranked 20-100 by market capitalization.
Strategy: Consider replacing coins that have increased significantly (e.g., 50%+) with those that have experienced major corrections, buying low and selling high.
Logic: During a bull market, funds will rotate from mainstream coins to altcoins. As long as the chosen project's fundamentals are acceptable, even if temporarily trapped, there will be opportunities to break even or even profit later.
Key: A good mindset, rhythm control, and project selection ability.
3. Pyramid bottom-fishing method (suitable after major declines)
Core: Respond to extreme downtrends by gradually building positions.
Operation: Place buy orders at 80%, 70%, 60%, and 50% of the current price. Suggested position allocation: 80% tier (10% of funds), 70% tier (20%), 60% tier (30%), 50% tier (40%).
Key Point: A sharp decline often presents a good opportunity, but requires extreme patience and risk tolerance.
4. Moving average strategy (requires basic technical analysis)
Core: Use moving averages (e.g., MA5, MA10, MA20, MA30, MA60) to assess trends.
Signal: Daily level, MA5 crossing above MA10 is seen as a potential buy signal; MA5 crossing below MA10 is seen as a potential sell signal.
Advantages: Simple and intuitive, assisting in trend judgment.
Key: Execute steadily without being disturbed by short-term fluctuations, and integrate with other analyses.
5. Band accumulation method (suitable for familiar long-term coins)
Core: Make small band trades near the current price, using profits to increase the quantity of coins held.
Operation (Example): When the coin price is $8, place a buy order at $7, and after the transaction, place a sell order at $8.8. Use the profit from selling to continue buying and accumulating that coin. Keep liquid funds for future opportunities.
Logic: Buy near 90% of the current price and sell near 110%. High-frequency trading (e.g., an average of more than three times a month) can efficiently accumulate coin quantity. Unless there is a several-fold increase, do not easily liquidate positions.
Goal: Increase the number of coins held and lower the average cost.
Summary:
Profiting in the cryptocurrency world is not limited to 'all-in' strategies. Understanding different strategies, controlling trading rhythms, and adhering to discipline are the keys to surviving and profiting in the market in the long term. Find a method that suits your personality and risk preference, maintain execution for a period, and you may see results.
