Short-term trading in cryptocurrency, remember these three iron rules, even beginners can avoid pitfalls:

First, secure profits and protect your gains. If the price of a coin rises more than 10% after purchase, keep an eye on it. If the price drops back to the purchase price, don’t hesitate, sell decisively. If you’ve made a 20% profit, set a lower limit for yourself; if the profit drops below 10%, do not sell unless you are sure it has reached a temporary peak. Otherwise, hold on tight. If you’ve made 30%, at least ensure you keep 15% profit before selling. By doing this, even if you can’t precisely catch the peak, you can still let your money grow.

Second, stop losses in a timely manner, never cling to a losing position. If you lose 15% after buying (this ratio can be adjusted according to your risk tolerance, but 15% is a good reference), immediately cut your losses and exit. This is to avoid further losses. If the price rises afterward, don’t regret it; this indicates that the entry timing was wrong, and accepting a loss is paying for an erroneous trade. Each time you open a position, be sure to set a stop loss—this is basic trading operation in cryptocurrency.

Third, buy back at lower prices to reduce costs. If the coin you sold drops, and you still believe in its future, buy back the same amount. This way, the quantity of coins remains unchanged, and you have additional funds. If after selling the price doesn’t drop much, and you fail to buy back in time, resulting in the price rising back to the selling price, don’t hesitate, buy back quickly. Although you will incur some transaction fees, this can effectively avoid missing out. This method can be combined with the stop loss strategy; buy back when it returns to the original price, and stop loss again if it drops. If after multiple operations you find that the price of this coin fluctuates too much and is difficult to grasp, then choose a new entry point.

Short-term trading in cryptocurrency emphasizes strict adherence to principles. Quick entries and exits are not blind floundering, chasing hot trends is not gambling, taking profits is not being timid, and staying out to observe does not mean exiting the crypto circle. When buying and selling, don’t be too obsessed with the lowest and highest prices; being close is good enough. Grasping the timing is key.