- Metal Element: Bitcoin (BTC) is regarded as 'digital gold' and belongs to the metal element. If the global economy falls into stagflation, its 'anti-inflation narrative' may drive prices up, but be cautious of short-term sell-offs triggered by heightened traditional financial risks.
Ethereum (ETH) belongs to the wood element, corresponding to the explosion of its Layer 2 ecosystem. The year 2025 (Year of the Water Hexagram) will support the wood element, and ETH's staking yield and DeFi applications may reach new highs, with a focus on the period from Spring Equinox to the beginning of Summer when wood energy is strongest.
Solana (SOL) belongs to the water element, fitting high-performance trading scenarios. If the Federal Reserve cuts interest rates, it may trigger excessive speculative bubbles, necessitating profit locking before the Winter Solstice.
Meme coins (DOGE, SHIB) may see short-term spikes during the summer or global sports events, leveraging social media for speculation.
Stablecoins (USDT, USDC) belong to the earth element and are the cornerstone of asset allocation. They are a safe choice during market crashes, especially during market panic signals like the Saturn-Moon cycle.
Utilize Platform Financial Tools
Many cryptocurrency trading platforms have launched similar financial products like wealth management tools and staking mining, offering different yield models and currency options. Investors can compare and choose the products that suit them best.
Investment Strategies
- Diversified Investment: Spread funds across different types and market capitalizations of cryptocurrencies. Mainstream coins like Bitcoin and Ethereum can serve as stable cornerstones, while appropriately allocating some potential emerging public chain projects and DeFi project tokens, but manage the ratio to avoid excessive concentration risk.
- Combination of Long and Short: On one hand, engage in long-term investment by selecting promising coins to hold for the long term and share in their growth dividends. On the other hand, utilize market short-term fluctuations for short trading to gain price differences, but short-term operations require high technical skill and timing, so proceed with caution.
- Risk Control: Set reasonable stop-loss and take-profit points. When the cryptocurrency price falls to the stop-loss point, sell promptly to avoid greater losses; when reaching the take-profit point, also take profits in a timely manner to secure gains.
Follow Market and Industry Trends
- Macroeconomics: Monitor the global economic situation and various countries' monetary policies, such as the Federal Reserve's interest rate decisions, and their impact on the cryptocurrency market.
