Entering the cryptocurrency market, many newcomers feel overwhelmed by the continuously fluctuating green and red candlestick charts. They want to buy but are afraid of 'buying at the peak', while they worry about 'missing the opportunity' when it comes to selling. In such a volatile and deceptive market like crypto, mastering some basic principles can help investors avoid many unnecessary mistakes. Below are 8 practical trading rules distilled from the experiences of seasoned traders.

1. Buy when the price is sideways, avoid buying when it rises steeply – sell points are often hidden in chaos

When the price is in a phase of accumulation or slight adjustment, this is often the right time to open a buy position. Conversely, when the price rises vertically in a short time, the likelihood of strong adjustments is very high. When the crowd shouts 'bull run', it is a warning signal to consider taking profits or reducing positions.

2. Slow increases indicate strength, rapid increases are prone to reversal

Coins with stable upward momentum, gradually accumulating through many small candles, often show strong buying power. Conversely, hot increases with consecutive long green candles often signal the possibility of adjustments or strong profit-taking from large investors.

3. Sharp declines without volume are selling off, steady declines with volume are bad signals

If the price suddenly drops but trading volume is low, this may just be a 'selling off' action by sharks to weaken retail hands. However, if the price declines gradually but volume increases steadily, that indicates real selling pressure, and one needs to exit positions quickly to preserve capital.

4. Do not sell when the price rises sharply, do not buy when the price drops deeply – avoid trading in sideways markets

In periods when the market trend is unclear, short-term fluctuations are often just 'noise'. Limiting trading in narrow price ranges helps avoid getting caught up in minor fluctuations and losing emotional control. One should only act when there are clear signals of an upward or downward trend.

5. Buy on the down days, sell on the up days – act against the crowd

Market sentiment is often extreme: when people are pessimistic, prices have reached attractive levels; when everyone is optimistic, risks are high. Buy when the market is down, sell when the market is up – going against crowd sentiment often helps achieve better positions.

6. Price increases without volume growth is a warning signal

If the price rises but trading volume does not accompany it, this indicates that the uptrend lacks real support. This could be a 'bull trap' created by sharks to attract new buyers before unloading their positions.

7. Price creates new lows but volume decreases is a sign of accumulation, recovery with increasing volume is a safe buying point

When the price continues to drop but volume decreases, this indicates that selling pressure has weakened, and the market is in an absorption phase. If a recovery occurs afterward with strong volume increases, it is often a signal confirming that a bottom has formed.

8. Monitor the daily and monthly chart – grasp the intentions of large capital flows

Long cycles reflect the true trends of the market and the actions of large institutions. Observing larger time frames helps avoid being misled by short-term fluctuations, while staying close to the overall trend to protect investment positions.

Conclusion

The cryptocurrency market is not short of opportunities, but it is also full of traps. Success does not come from 'catching the peak and bottom' or 100% accurate predictions, but from understanding the rules of movement, managing risks, and maintaining discipline. Consistently applying these principles will help investors protect their capital while seizing real long-term opportunities.