I rely on these 10 'simple methods' to steadily establish myself in the cryptocurrency market; ordinary people can also slowly accumulate returns.
Trading cryptocurrencies is not about 'gambling on luck'; rather, the 'simpler' methods are more likely to avoid traps. I have summarized a set of operational logic suitable for ordinary players. Sticking to these 10 principles can help find certainty in volatility:
1. If a strong coin has fallen for 9 consecutive days from a high position, the selling pressure is basically released, making it a good time to enter at a low level. Avoid chasing highs and do not blindly bottom-fish.
2. Regardless of the type of coin, if there are two consecutive days of increase, promptly reduce part of the position. Leave room in the upward trend to avoid profit withdrawal during corrections.
3. When a certain coin rises more than 7% in a single day, even if there is a previous upward trend the next day, it is best to remain cautious. Rapid rises are often accompanied by fluctuations, so do not rush to enter.
4. For once 'bullish coins', wait until their market situation is completely over and the trend is clear before considering entry. Coins that have surged in the early stage carry extremely high risks; avoid catching the 'last baton'.
5. If a certain coin has shown flat fluctuations with no breakthrough for three consecutive days, observe for the next three days. If there is still no direction, decisively switch to a more vibrant target to avoid wasting time.
6. If the price does not return to the previous day's cost after buying, it indicates a weak short-term trend. Exit promptly to stop losses and prevent small losses from turning into big risks.
7. Coins on the gainers' list have a 'consecutive gain pattern': if they can rise for 3 days, they are likely to rise for 5 days; if they can rise for 5 days, they might see 7 days. However, when there are two consecutive days of gains, one can enter on dips, and by the fifth day, it is usually a good point to take profits.
8. The coordination of volume and price is the core of cryptocurrency trading. Trading volume is the 'lifeblood' of a coin. If a breakout occurs during low-level consolidation, it indicates that funds are starting to enter, warranting attention; if there is a volume increase at a high level but no price increase (stagnation), exit decisively to avoid being trapped.
9. Only trade coins in an upward trend, which have a higher win rate and do not waste energy. When the 3-day moving average turns upward, it is a short-term opportunity; a rising 30-day moving average corresponds to a medium-term market; an upward 80-day moving average likely indicates a main rising wave; a rising 120-day moving average belongs to a long-term upward trend, allowing for selection based on one's own pace.
10. Small funds in the cryptocurrency market are not a disadvantage; on the contrary, they are more flexible. The key is to adhere to the correct methods, maintain a rational mindset, avoid following trends or being impulsive, strictly execute strategies, patiently wait for opportunities that belong to oneself, and gradually accumulate can also yield good returns.