I've been in the cryptocurrency world for eight years now. From my initial investment of 120,000 yuan to the 15.6 million yuan I currently hold, the ups and downs along the way are something only those who have truly experienced can understand.
I've made it this far not by relying on insider information or gambles, but by a trading method that many consider "dumb," but one I've mastered through sheer perseverance.
Today, I'll share the experience I've accumulated over these 1,095 days from the bottom of my heart.
Rapid increases and slow declines indicate market manipulation, so don't rush out.
In the cryptocurrency world, we often see a situation where a currency suddenly surges, then begins a slow, volatile decline. At this point, many retail investors panic, believing it's peaking, and rush out. However, this is often not a sign of a peak, but rather a way for market makers to flush out those who exited early.
Market makers lure some retail investors in by rapidly driving prices up, then slowly decline to create panic and drive those less resolute investors out of their positions. Once the market maker has absorbed enough chips, they'll likely begin a new round of price manipulation.
The truly dangerous situation is a sudden plunge after a massive surge. This often indicates the market maker is luring retail investors into buying, then taking advantage of the opportunity to reap the profits. When encountering this situation, be vigilant and don't be blinded by the sudden surge.
A rapid decline followed by a slow rise indicates the market maker is fleeing; don't expect to find a bargain.
Sometimes, a currency will experience a sudden flash crash followed by a weak rebound. At this point, many retail investors will think, "It's already fallen so much, it can't fall any further," and try to take advantage of the opportunity to buy at the bottom. But I must tell you, this is likely a trap—the market maker's final blow.
A weak rebound after a flash crash is often the result of the market maker selling out. They use a small amount of capital to manipulate the price, creating the illusion of a rebound to lure retail investors in, and then slowly unload their remaining chips. Don't assume that after a significant drop, the market won't fall any further. In fact, it might fall so low that it makes you question your life. $BTC