I am 35 years old and plan to reach an 8-figure asset by trading coins from 2021 to 2025. Over the past few years, I haven't gotten involved in complicated business, which has led to fewer worries. I want to share my insights on trading coins with everyone, with one core message: in trading coins, having a good mindset is the foundation, and technology is just adding bricks. Understanding the following rules can save you from many detours.
One, coin correlation rules: BTC is the anchor, altcoins can't escape.
• BTC's 'leadership' position: Most of the time, BTC's rise and fall affects the entire market; it is the 'barometer' of the cryptocurrency market. However, high-quality mainstream coins like ETH can occasionally 'be strong,' breaking away from BTC to have a unilateral rise/fall, while altcoins are generally controlled by BTC and fluctuate with its rhythm.
Two, the password for intraday trading: Day vs night, spikes, and timing
• Significant drop during the day, set buy orders before bed: If the coin price continues to drop during the day in China, don't panic and sell at a loss; be bold and buy at the bottom! This is because around 10:30 PM, overseas funds often push prices up. Additionally, there is a tendency for 'spikes' (sudden large fluctuations in price that quickly revert) between midnight and 1 AM. You can set a low buy price for your desired coin and a high sell price before bed, and who knows, you might wake up to find a profit.
• The 'prophecy moment' from 6 to 8 AM: Every day from 6 to 8 AM is a key window for determining the day's market trend. If it has been dropping from midnight to 6 AM, and continues to drop from 6 to 8 AM, boldly buy in/average down, as there is a high probability of a rebound that day; if it has been rising from midnight to 6 AM and continues to rise from 6 to 8 AM, quickly consider taking profits and selling, as many significant rises and falls happen during this period, so keep a close watch.
Three, special times and averaging down: Black Friday, responding to being stuck
• 'Black Friday'? A dialectical view: There is a saying of 'Black Friday' in the cryptocurrency circle, and there have indeed been significant drops on Fridays, but there have also been significant rises and sideways movements. Don't panic; just pay a little attention to the news, and don't let this saying scare you.
• Don't be afraid if you're stuck, average down to lower cost: If a coin with a certain trading volume drops, don't panic and sell at a loss. Patience in holding it has a high probability of getting back to break-even, with a short duration of 3-4 days and a longer duration of a month. If you have spare money (USDT), average down in batches to reduce your holding cost for a quicker recovery; if you don't have extra funds, just hold on, time will reward you, unless the coin you bought completely 'goes to zero' (but this situation is rare for coins supported by trading volume).
Four, the truth of spot trading: Long-term > frequent trading
Engage in spot trading and hold a coin for the long term, minimizing trading; often, the returns are higher than frequent buying and selling. Simply put, it depends on whether you can endure patiently and not be shaken off by short-term fluctuations; time favors those who are patient.
When it comes to trading coins, technical analysis can help you find buy and sell points, but mindset and patience are the foundation of making big money. Integrating these rules into your trading habits will allow you to remain steady and hold firm, gradually growing your asset snowball. Of course, there are risks in the cryptocurrency market, so be cautious when entering, but mastering these 'mind principles' will at least help you stand more firmly in the waves.
