Those who have been in the cryptocurrency world must have heard this classic saying: "Trading coins is not as good as holding coins, and holding coins is not as good as mining coins."
At first glance, this seems to hold the secret to wealth in the crypto world. However, in reality, many people are still blinded by the desire for quick profits, diving headfirst into the waves of trading coins.
The thrill of trading coins is like riding a roller coaster. When the market is rising, the numbers in the account jump rapidly, making people ecstatic;
But once the market takes a sharp downturn, funds disappear like a flood breaking through a dam, vanishing without a trace.
So how can one avoid becoming the "chives" that are harvested and stand firm in this capital game? The answer is to start from the basics and first understand the candlestick chart.
The origin of the candlestick chart is quite legendary. As early as the 18th century in Japan, rice merchants invented this unique recording method to accurately track daily fluctuations in rice prices.
Later, the securities market recognized its value, introduced it, and continuously improved it. Today, candlesticks have become a core tool for analyzing market trends.
If we compare the cryptocurrency market to a vibrant living organism, then the candlestick chart is its "electrocardiogram."
Each candlestick reflects the pulse of the market, showing price fluctuations, market warmth, and the emotional ups and downs of investors.
There are many candlestick patterns, but they mainly fall into two categories: bullish and bearish. A bullish candlestick is like a flag of market ascent, indicating that prices are rising, with a lower opening price and a higher closing price;
A bearish candlestick, on the other hand, is like a warning bell for market decline, indicating that prices are falling, with a higher opening price and a lower closing price. Through these two types of candles, we can roughly gauge the market's direction.
However, what is truly important is to perceive market sentiment from the candlesticks, assess the strength of buyers and sellers, and predict future market changes.
Candlesticks act as a guide in the market.
The emergence of a long bullish candlestick often indicates strong market buying power; continuous bearish candlesticks suggest low market sentiment, and a reversal may be imminent.
Mastering these signals can help pinpoint the right entry timing.
Trading coins is a game of wisdom and courage. Candlesticks can help us clear the fog of the market, make rational decisions, and avoid blindly following trends.
Don’t rush in just because the price is rising, and don’t panic and sell just because the price is falling. Stay calm, learn to analyze, and you can have a firm grasp on victory in this game.
