In recent years, with the rise of the digital currency market, various cryptocurrencies represented by Bitcoin have appeared like mushrooms after rain, and their roller-coaster-like market has attracted much attention, drawing in a large number of investors into the crypto world. However, among these investors, some have made significant profits while others have lost everything. Therefore, trading skills are particularly important for investors. So, how can one quickly learn to trade cryptocurrencies? Below, the editor will detail how to quickly learn to trade cryptocurrencies. I hope through this article, investors can learn trading skills.
How to Quickly Learn to Trade Cryptocurrencies?
Trading cryptocurrencies can be complicated or simple. We can simplify complex things, but it is not advisable to overcomplicate simple matters, as this can affect decision-making, cause hesitation, and lead to missed opportunities. Realizing too late that one has missed a good entry point after a rise, only to find oneself in a passive position when trying to re-enter, is undeniably unfavorable.
To quickly learn to trade cryptocurrencies, first, we need to learn to use trading platforms, becoming familiar with buying and selling.
Then, learn to read naked K-line movements. For short-term traders, you can build positions during a decline; don't rush to buy just because of the rise. For instance, if a drop reaches 10%, 20%, or 30%, you can build a position of 10% or continue waiting. After waiting for 15 minutes or an hour, once it declines to a certain extent, we can plan our buy. Then, gradually sell during the rise to form a trading habit.
Chasing highs and cutting losses is a behavior of inexperienced traders and is a major taboo. In any case, the crypto sphere is also a trading market, and since it is a trade, rises will naturally accompany falls.
A drop naturally leads to a rebound; this is a market rule and a consensus among traders, which forms the operation of the market.
Then, learn to read naked K-line movements. For short-term traders, you can build positions during a decline; don't rush to buy just because of the rise. For instance, if a drop reaches 10%, 20%, or 30%, you can build a position of 10% or continue waiting. After waiting for 15 minutes or an hour, once it declines to a certain extent, we can plan our buy. Then, gradually sell during the rise to form a trading habit.
Chasing highs and cutting losses is a behavior of inexperienced traders and is a major taboo. In any case, the crypto sphere is also a trading market, and since it is a trade, rises will naturally accompany falls.
A drop naturally leads to a rebound; this is a market rule and a consensus among traders, which forms the operation of the market.
Revealing Tips for Learning to Trade Cryptocurrencies:
1. Invest with spare money; avoid borrowing money or taking loans to trade cryptocurrencies—invest money + invest energy.
2. Strictly filter valuable cryptocurrencies and create a reasonable funding allocation plan that aligns with reality—Sunny Investment Strategy.
3. Averaging down—it's normal to experience pullbacks after entering the market, so allocate funds reasonably and enter in batches.
4. Refuse to go all in; distribute positions reasonably. Don't put all your eggs in one basket to effectively reduce risks.
5. Keep an eye on all directions—stay updated with cryptocurrency news and the latest in finance and economics. The earlier you know, the better you can understand and earn.
6. Think inversely; don’t go against the market or manipulate the situation, just go with the flow.
7. Open contracts, not full positions, using a leverage of 20-50; avoid easily using 100x leverage. Don’t seek to get rich overnight; instead, aim for steady profits.
8. Control your own holdings well—managing your positions is more important than anything else. If uncertain, don't trade lightly; not trading means no risk and no losses. Often check your assets to see if they're managed well and reasonably.
9. Keep the bottom and top in mind, don't be afraid; the crypto world will only help you grow. Mindset is more important than operations. Remember the trading methods well, and you won't worry about not making money!
Finally, the editor reminds investors that before trading cryptocurrencies, they should first study and understand why cryptocurrencies exist. Generally, speculating to make quick money might be the reason many enter the market, but the deeper meaning of cryptocurrencies is about decentralized financial control, design, and fund settlement. For example, cryptocurrencies are like money with wings; with the help of encryption technology, users no longer need to rely on banks but can become their own banks and use free applications on their phones. Therefore, once investors understand cryptocurrencies, they will have a solid foundation when entering the cryptocurrency market.
