I have been trading cryptocurrencies for 10 years, from big losses to big profits, and I have summarized 10 iron laws.
A piece of advice to all retail investors!
If you want to play in the cryptocurrency circle for a long time, please read this article carefully!
Newbies must keep this in mind so that they can navigate the market with ease.
1. Popular coins in a bull market fall the fastest. The hottest coins, especially those with serious market control, often burst quickly. The more a coin attracts a large number of retail investors to chase the rise, the greater the risk.
Just like blowing up a balloon, the bigger it is, the faster it bursts.
Popular coins in a bull market are often the favorites of short-term speculators, but they are also the traps that are most likely to make people lose all their money.
Suggestion: Don’t blindly chase the rise, especially those currencies that have seen huge gains in a short period of time. Stay calm and avoid becoming a “bag holder”.
2. The routines of altcoins are similar. The way to play altcoins is usually to smash the market first to create panic, then slowly push it up to attract retail investors to enter the market, and finally change the way to continue to reap the benefits.
This tactic has been tried and tested, and newbies can easily be cheated.
Suggestion: For altcoins, you must be mentally prepared, don’t be confused by short-term gains, and don’t easily increase your holdings.
3. The long-term market trend is upward. Although the cryptocurrency market has experienced sharp short-term fluctuations, if we look at the long-term trend, the overall trend is upward.
The historical trends of mainstream currencies such as Bitcoin and Ethereum have proven this.
Suggestion: If you are a long-term investor, don’t be scared by short-term ups and downs. Hold on to quality assets patiently and time will reward you.
4. No one hypes up coins with potential. Coins with real potential are often unknown at the bottom and few people mention them.
And those coins that are wildly hyped are often the tools used by bookmakers to reap profits.
Low-key currencies may quietly explode at some point. Suggestion: Pay more attention to projects with solid technology and reliable teams that have not yet been hyped by the market. They may be the dark horses of the future.
5. Newly listed coins Be careful with newly listed coins on exchanges, especially those that experience sharp rises and falls, which are often traps designed by market makers.
This type of currency usually has no actual value support and is purely for profiteering. Suggestion: For new currencies, especially those with huge fluctuations in the early stage of listing, be vigilant and do not enter the market easily.
6. Ups and downs are common. If you buy, it will fall, and if you sell, it will rise. This is normal in the cryptocurrency circle. The market volatility is extremely high, and short-term ups and downs cannot fully reflect the value of a project.
Suggestion: Keep a positive attitude and don't panic because of short-term fluctuations. Develop your own investment strategy and strictly implement it.
7. The most violent rebound does not represent the potential. The coins with the most violent rebound are often not those with real potential, but rather those that are hyped up for speculation.
The rise of such currencies usually lacks fundamental support, and they rise quickly and fall quickly.
Suggestion: Don’t be fooled by short-term surges. Currencies with real potential usually fluctuate more steadily and have an upward long-term trend.
8. Be careful of being cut off in sudden pullbacks. If the coins you bought rise for a while and then suddenly pull back, this may be a signal that the dealer is starting to sell.
The dealer usually attracts retail investors by raising the price, and then sells at a high level. Suggestion: When encountering a sudden callback, stop profit or stop loss in time to avoid becoming the dealer's "taker"
9. Coins that explode in the second half In a bull market, coins that performed generally in the early stages may explode in value by several times or even more in the second half.
This type of currency is like a marathon runner, accumulating strength in the early stages and exerting force in the later stages.
Recommendation: Don’t ignore those currencies that have mediocre performance in the early stage but have solid fundamentals. They may be dark horses in the later stage of the bull market.
10. Coins that have been trading sideways for several months may explode in a bull market. Some currencies may trade sideways for several months after experiencing several times the increase.
This kind of sideways trading is usually the result of the dealer accumulating strength and waiting for the next opportunity to explode. It is recommended to keep an eye on the currencies that have been sideways for a long time, as they may be the protagonists of the next round of market.
The trend of the cryptocurrency market is full of uncertainty and challenges, but it also contains potential opportunities. When investing in the cryptocurrency market, investors should fully understand the relevant risks, remain calm and rational, and respond to market changes with a steady strategy!
