Guide to Surviving in the Crypto World: A Must-Know Lesson for Beginners
Guide to Surviving in the Crypto World: 6 Hardcore Trading Mindsets
1. Rapid Rise and Slow Decline = Institutional Accumulation
If there's a gentle pullback after a surge, it's highly likely that the market makers are washing the plates while accumulating.
Professional Perspective: Create FOMO (Fear of Missing Out) emotions through short-term rapid increases, and use a volume contraction pullback to complete the transfer of chips. When the OBV (On-Balance Volume) indicator continues to rise, it confirms institutional accumulation.
2. Sharp Decline and Gradual Rise = Institutional Distribution
After a significant drop, a sluggish rebound is likely just bait.
On-chain Data: Coupling large deposits to exchanges with address decentralization indicates a typical distribution pattern. Be wary if the TVL (Total Value Locked) continues to decline during the rebound.
3. Top Volume Determines Life and Death
Practical Advice: Pay attention to trading volume and RSI divergence when hitting new highs.
Professional Indicator: When the price reaches a new high but the volume < previous high and the MACD histogram contracts, it forms a top divergence signal.
4. Bottom Volume Must Be Analyzed Dialectically
Data Verification: Must meet the condition of volume > 30-day average volume for three consecutive days.
On-chain Verification: Continuous growth in smart money addresses + decreasing exchange balances indicates a true bottom formation.
5. Emotion is the K-Line Engine
Emotion Indicators: Combine the Fear and Greed Index with social media keyword analysis.
Order Book Observation: The thickness of buy orders and the speed of order fulfillment reflect real market sentiment.
6. Impermanence is the Eternal Rule
Risk Control Ironclad Rule: Any strategy must be paired with stop-loss levels.
It is recommended to use dynamic profit-taking: move the stop-loss line up by 10% for every 10% increase to protect profits.
Professional Annotations: TVL = Total Value Locked; OBV = On-Balance Volume; FOMO = Fear of Missing Out