First, no matter what, you must maintain your living power, which means do not get liquidated.
Therefore, setting stop-loss points is necessary. Do not blindly increase margin, as this will likely lead to greater losses.
You must be alive to have the opportunity to profit.
There are always opportunities to profit in the market; do not think about getting rich quickly. Prioritize survival, and then look for buying opportunities.
Leverage should not be set too high, generally controlled below 20 times, and find suitable profit and stop-loss points for yourself.
Successful cryptocurrency investment requires a deep understanding of the market and good research abilities. Understanding the fundamentals, technology, team, and market trends of a project is crucial for making wise investment decisions. In cryptocurrency investment, risk management is essential. Investors should develop appropriate investment strategies based on their risk tolerance and investment goals, and take appropriate risk control measures.
Secondly, it is also necessary to control risks.
Absolutely, absolutely, absolutely do not operate with a full position.
This also includes putting all funds into margin.
Control the amount of each trade to about 1% to 3% of your position.
The number of trades should not be too frequent; observe more and act less, looking for opportunities.
Set profit targets, do not have dreams of making over 100% from a single trade; even if you have a 30% profit, you may be completely wiped out in a big drop.
I refer to a K-line chart that rises or falls sharply in a short time as a 'big dragon'. An increase is called 'rising dragon', and a decrease is called 'hidden dragon'. A big dragon often has fluctuations of 2 to 3 points or even more, with 20 times leverage equating to 40% to 60%. There have also been instances where the price rose by 130% in a few minutes.
Still, the market always has profits; do not think about getting rich in one wave.
We must look for profit opportunities while ensuring we do not lose our capital, rather than blindly going all-in and gambling for a double.
This is no longer trading cryptocurrency; it is gambling on size.
Turning cryptocurrency trading into gambling is the biggest taboo.
Without any risk control, after several rounds of confrontation, your assets could shrink by 90%.
Successful cryptocurrency investment requires a significant amount of time and energy to conduct research, monitor the market, and adjust investment strategies. If you do not have enough time and energy, you may miss market opportunities or make unwise investment decisions.
Thirdly, when buying and selling, follow the overall trend, but do not blindly trust your own judgment, especially when it contradicts your judgment.
The price keeps going lower, yet you insist that it will reverse soon, so you buy heavily, only to find that the price continues to drop.
Some people see the price continuously declining and immediately choose to go short.
As a result, both outcomes may not be very good.
Why one chooses long and the other chooses short, yet both end up badly?
Because such market conditions cannot occur just once.
And the outcomes of each such situation vary.
Whether you choose short or long, as long as there is a blowout order in one market (here referring to reaching the stop-loss point), the losses incurred will take a long time to recover.
So when encountering extreme one-sided market conditions, whether continuously rising or falling, it is best to observe first and not to participate blindly.
If you must participate, you can set a smaller profit target and participate with a small amount. When participating, also choose to buy in line with the overall trend, do not go against it.
For example, when there is a continuous decline, set a small profit target to short.
If you find the situation is not right, close your position immediately and wait for a new pattern to form.
The above content is the answer to the question of what is the most stable way to make money in the cryptocurrency circle.
