After six years of struggling in the cryptocurrency world, experiencing soaring and plummeting prices, making profits and then losing it all, I have finally summarized some reliable trading methods. Looking back to when I entered the cryptocurrency market after being unemployed at over 40 years old with 100,000 RMB, I was also a victim of repeated losses. Today, holding a significant amount of spot assets, I want to share several trading techniques that I have personally practiced, hoping you can avoid detours and achieve financial freedom sooner!
1: Pyramid bottom-fishing method - precisely grasp the opportunity of a major drop
During severe market fluctuations, the best operation is bottom-fishing. This method applies to those major drops you have already predicted, but be careful not to be greedy and enter the market in batches. The specific operation steps are:
Set an order to buy one-tenth of your position at 80% of the coin price.
Set an order to buy two-tenths of your position at 70% of the coin price.
Set an order to buy three-tenths of your position at 60% of the coin price.
Set an order to buy four-tenths of your position at 50% of the coin price.
This way, you can average your costs, and when the market rebounds, your position can quickly become profitable. If the bottom touches and rebounds, you can gradually increase your position later to achieve substantial profits.
2: Moving average method - grasp the market pulse, enter and exit accurately
As an old player in the cryptocurrency circle, you must understand some candlestick analysis. This is not only a skill necessary for beginners but also a fundamental skill for skilled traders. First, you need to set the following moving average indicators:
MA5
MA10
MA20
MA30
MA60
Choose the daily chart. When the current price is above the MA5 and MA10, it indicates a good market trend, and you can hold coins boldly. If the MA5 falls below the MA10, sell immediately. If the MA5 rises above the MA10 again, it is a good time to buy.
The crossover of moving averages is a very practical signal; remember to follow the trend. Going against the trend will always result in losses.
3: Aggressive coin-holding method - focus on familiar coins for guaranteed profits
The aggressive coin-holding method is suitable for holding quality coins for the long term, especially those you are familiar with. This method requires you to have a liquid fund and be very sensitive to the price fluctuations of a specific coin. For example, if a coin's current price is $8, you can operate as follows:
Set an order to buy at $7, with a position size of 10%.
Sell when the price rises to $8.8, and the profit comes from this price difference.
Once you buy with liquid funds, continue to reinvest in the next round after selling. This approach can help you continuously profit from market fluctuations, with the key being to choose high-quality coins that you understand well and have long-term investment potential.
4: Aggressive play with small coins - small funds, crazy doubling
If you have some spare money (for example, 10,000 RMB), you can choose small coins for aggressive plays. Divide it into ten parts and buy ten different types of small coins, preferably priced under 3 RMB. After buying, do not act impulsively unless the price has tripled to five times.
If a coin triples, you can take back your principal of 1,000 RMB and reinvest in the next small coin. The key to this approach is the compound interest effect, which may seem insignificant in the short term, but over time, the compound effect is very exaggerated, and the account balance will inflate significantly.
These methods are not foolproof, but for me, they have become effective operational skills. Of course, every investment must have risk control, setting stop-loss and take-profit levels to avoid unexpected losses. Remember, investing is a patient accumulation; do not act emotionally due to temporary fluctuations. Stick to your strategy and follow the trend, and you will surely reap considerable rewards in the future.
I hope my experiences can help everyone to walk more steadily on the investment path in the cryptocurrency market.