In the cryptocurrency space, filled with opportunities and risks, many people dive in with dreams of wealth. However, very few can achieve sustained profits. The old boss initially entered the cryptocurrency space with a capital of 100,000 yuan, and now he holds a market value of 42 million. His success story is astonishing. "The cryptocurrency market is full of mobs; if you can control your emotions, this market is an ATM!" This statement deeply inspired me and made me realize the importance of maintaining calm and rationality in cryptocurrency investment.

There are various methods for trading cryptocurrencies, but not all methods are easy to master. We all desire to achieve good returns with the simplest methods, but in reality, friends in the crypto space often overcomplicate things. Today, I will introduce a trading strategy that is both simple and highly effective — the trend strategy.

10 Top Mindsets to Survive and Make Big Money in the Cryptocurrency Space

Before diving deep into the trend strategy, let's first understand the 10 top mindsets that can lead to sustained profits in the cryptocurrency space. These mindsets are the result of years of practical experience and have significant guiding importance for our investments.

  1. The Standard for Judging Experts Lies in Their Duration of Holding Cash: True investment experts can not only profit when the market rises but, more importantly, they know when to decisively choose to hold cash in uncertain or high-risk markets. This patience and discipline are key factors for success. Holding cash is not passive waiting but an active risk management strategy that helps us avoid losses during market turmoil, preserve strength, and wait for better investment opportunities.

  1. In a Bear Market, All Purchases May Be Mistakes: During a bear market, the overall market trend is downward, making any buying behavior likely to encounter further declines. Therefore, maintaining a cautious attitude in a bear market by minimizing trades or refraining from trading until the market stabilizes or a bull market arrives is wise. Every purchase in a bear market feels like groping in the dark; the risks are high, and we must proceed with caution.

  1. In a Bull Market, All Sales May Be Mistakes: When the market is in a bull market, prices continue to rise, and selling too early can cause us to miss out on more substantial profits. In a bull market, we should hold firm, follow the trend, and only consider selling when there is a clear change in market direction. The bull market is a golden period for wealth growth; we must fully utilize this trend to let profits run.

  1. The Fundamental of Investing is to Buy Low and Sell High: This may sound like a simple principle, but it is challenging to execute in practice. The core of buying low and selling high is having enough patience to wait for the right entry and exit points and not being swayed by short-term market fluctuations. In the cryptocurrency market, prices fluctuate frequently; we must overcome the psychology of greed and fear and strictly adhere to our investment plan.

  1. The Direction of the Market is Determined by Major Funds: The main direction of the market is driven by large-scale capital. Understanding the dynamics of major funds can help us follow the trend and avoid getting caught in counter-trend operations. The inflow and outflow of major funds often trigger significant market volatility; we should closely monitor the movements of major funds and invest according to the mainstream market trend.

  1. Technical and Fundamental Analysis Are No Match for the Overall Trend: Whether it's technical analysis or fundamental analysis, both seem trivial in the face of the overall market trend. Following the prevailing trend is the key to achieving long-term profitability. The market trend is formed by the interaction of multiple factors; technical and fundamental analysis should only serve as references. We cannot solely rely on these analytical methods to predict market movements; instead, we should make investment decisions guided by market trends.

  1. Bearish Signals at the Top Indicate a Bottom; Sell Decisively: When the market is at a high, bearish news often suggests that a reversal is imminent, making it an excellent time to exit. At the market's peak, investors are often overly optimistic, and the emergence of negative news can shatter this optimism, triggering a market decline. We must keenly capture these signals and sell decisively to avoid losses.

  1. Bearish Signals at the Bottom Indicate a Bottom; Boldly Buy: In the market's bottom region, bearish news often reflects extreme panic, and this is precisely the best time to buy. When the market is at its bottom, investors generally feel fear and despair, and negative news further exacerbates this sentiment. However, it is often during this extremely low market sentiment that significant investment opportunities arise. We must dare to buy boldly at the bottom and wait for the market to rebound.

  1. Being Wealthy Once in a Lifetime is Sufficient; Be Sure to Protect Your Wealth: In cryptocurrency investment, do not be greedy. It is essential to take profits at the right time and safeguard the wealth you have earned; this is the key to achieving long-term success. Wealth accumulation is not achieved overnight; we must cherish every opportunity to make money and learn to protect our hard-earned results. During favorable market conditions, we must maintain a clear mind to avoid excessive greed that may lead to losses.

  1. Bitcoin Must Be Allocated; Otherwise, You May Not Make Money in a Bull Market: As the leader of the cryptocurrency market, Bitcoin often has the most significant price increase during a bull market. Properly allocating Bitcoin can help us achieve stable returns in a bull market. Bitcoin has a high market recognition and liquidity, and its price trends significantly impact the entire cryptocurrency market. Allocating a certain proportion of Bitcoin in an investment portfolio can effectively improve the stability and profitability of the portfolio.

What is a Trend

A trend is the direction of market movement, which can be classified into upward trends, downward trends, and sideways trends. In financial trading markets such as stocks, futures, forex, and cryptocurrencies, trends are the regular conclusions we draw by observing the market. The changes in investors' buy and sell decisions shape different trend forms. Trends always move in the direction of the least market resistance, so finding a trend means finding the direction of least resistance. Financial trading masters generally advocate that traders follow trends because in clearly trending markets, doing so significantly increases the probability of investment success.

According to Dow Theory, any trend will eventually run its course, meaning a bull market must be followed by a bear market, and vice versa. Market prices will not rise straight in one direction; the trajectory of trend movements resembles waves that follow each other, with clear peaks and valleys. Peaks and valleys are the basic elements that constitute different trends. Based on the positions of peaks and valleys, we can classify trends into upward trends, downward trends, and volatile trends.

In an Upward Trend, the Subsequent Peak is Higher Than the Previous Peak, and the Subsequent Valley is Also Higher Than the Previous Valley, Indicating Bullish Dominance: In a downtrend, the subsequent peak is lower than the previous peak, and the subsequent valley is also lower than the previous valley, indicating strong bearish forces and continuous price declines. In a volatile trend, the positions of peaks and valleys are relatively close, with the market's bullish and bearish forces balanced, causing prices to fluctuate within a certain range.

Understanding the Basic Concepts and Characteristics of Trends is the Foundation for Using Trend Strategies in Investments. Only by accurately judging market trends can we formulate reasonable investment strategies, grasp investment opportunities, and achieve profit goals.

Application of the Trend Strategy in the Cryptocurrency Market

Identifying Trends

In the cryptocurrency market, recognizing trends is the first step in using trend strategies. We can use various methods to determine market trends, with the most common being price trend observation and moving average analysis.

  1. Price Trends: By observing the price charts of Bitcoin or other cryptocurrencies, we can intuitively see the price fluctuations. If the price shows a continuous upward trend, with each subsequent peak higher than the last and each subsequent valley also higher, the market is likely in an upward trend. Conversely, if the price is continuously declining, with each subsequent peak lower than the last and each subsequent valley also lower, the market is in a downward trend. If the price fluctuates within a certain range without a clear upward or downward direction, the market is in a volatile trend.

  1. Moving Averages: Moving averages are commonly used technical analysis tools that help us smooth price fluctuations and more clearly display market trends. Common moving averages include the 5-day, 10-day, 20-day, 50-day, and 200-day averages. When a short-term moving average (like the 5-day or 10-day) crosses above a long-term moving average (like the 50-day or 200-day), it forms a golden cross, which typically signals that the market is entering an upward trend. Conversely, when a short-term moving average crosses below a long-term moving average, it forms a death cross, signaling that the market is entering a downward trend.

Grasping Buying and Selling Opportunities

After identifying the market trend, we need to grasp buying and selling opportunities based on the trend changes.

  1. Buying and Selling Opportunities in an Upward Trend: In an upward trend, we should adopt a strategy of buying on dips. When the price pulls back near the moving average, it is often a good buying opportunity. In an upward trend, the moving average serves as a support for the price, and when the price pulls back to this level, it usually finds support and continues to rise. At the same time, we should set stop-loss levels to prevent excessive losses from sudden price drops. The stop-loss level can be set a certain distance below the moving average, such as 3% - 5%. When the price falls below the stop-loss level, we should sell decisively to avoid further losses. In an upward trend, we can also appropriately add to our positions based on market conditions to increase returns. The timing for adding positions is generally chosen when the price breaks through previous highs or when a pullback ends and the price rises again.

  1. Buying and Selling Opportunities in a Downward Trend: In a downward trend, we should adopt a strategy of selling on rallies. When the price rebounds near the moving average, it is often a good selling opportunity. In a downward trend, the moving average acts as a resistance level, and when the price rebounds to this level, it typically faces resistance and continues to fall. Similarly, we should set stop-loss levels, which can be placed a certain distance above the moving average. In a downward trend, we should avoid bottom-fishing as once a downward trend is established, it often continues for some time, making bottom-fishing risky. If we want to find investment opportunities in a downward trend, we can wait for a clear reversal signal, such as a price breakout above the downward trend line or a golden cross in moving averages, before making a buying decision.

  1. Trading Opportunities in a Volatile Trend: In a volatile trend, market prices fluctuate frequently, making it relatively difficult to grasp buying and selling opportunities. We can adopt a strategy of selling high and buying low, that is, selling when the price approaches the upper bound of the fluctuation range, and buying when the price approaches the lower bound. At the same time, we must pay attention to controlling our positions to avoid excessive losses due to market fluctuations. In a volatile trend, since the market direction is unclear, we should avoid over-leveraging to prevent significant losses from sudden market reversals.

You no longer need to stay up late watching the market and guessing trends, nor do you need to worry about whether your buy and sell points are precise. Only pursue opportunities with clear trends; hold back in bear markets and seize positions in bull markets.

Remember, the cryptocurrency space is not short of opportunities; what is lacking is the execution to seize them. Your hesitation may be someone else's doubling point. Join now and let professionals help you avoid pitfalls and catch the right trends!

Old Boss Only Engages in Real Trading; The Team Still Has Positions Available.