Crypto Insights: For Friends Just Entering the Space
In these years in the crypto space, I've stumbled, witnessed liquidations, and endured the loneliness of sideways markets. Here are a few points to share with brothers who are just entering the space:
Don't Get Attached to Hot Trends
When a clone project makes money, you need to run; trying to eat from start to finish will only leave you empty-handed. Do you remember FIL and LUNA from back then? Each was worse than the last.
Identify Signals in Sideways Markets
High-level sideways movement followed by a spike usually indicates that the main players are trying to lure in more buyers; the key is to exit quickly. Conversely, if there's a breakdown after a low-level sideways movement, it often means a final washout. Only those who can maintain a steady mindset will reap the rewards.
Observe the Overall Market Environment
When the market is poor, a slight rise in a sideways trend often signals a potential big surge; conversely, a slight drop during a good market can often be a warning of a significant downturn. Don't just focus on individual coins; first, assess the overall environment.
Iron Rule for Adding Positions
Only increase your investment when you're making money; don’t average down on losses. If you keep adding as prices drop, you might end up immobilized. Cut your losses and let profits run; that's the way to survive.
Golden Opportunities at the Bottom
Recognize the bottom and don’t hesitate. An upward trend often involves both growth and corrections; if you can hold your position, great surprises may follow.
Levels of Players
Top-tier players analyze sectors, second-tier focus on individual coins, third-tier rely on indicators, and bottom-tier are merely gambling. Popular sectors attract attention and have a higher success rate.
Volume and Price are the Real Essentials
Indicators are all derived from the relationship between volume and price; don’t be deceived by flashy lines. Focus on the funds and trading volume; whether the price can rise depends entirely on the volume.
Go with the Trend
In an upward trend, support represents opportunity; in a downward trend, resistance signifies a trap. Only those who can follow the trend won’t be harvested by the market.
Final Note:
The crypto space isn’t about who can run the fastest, but rather who can last the longest. Keep your hands steady, guard your positions, and wait for the right moment.
