1. Accurately assess the consolidation situation: When the cryptocurrency price is in a high consolidation, it often refreshes the high points later; while in a low consolidation, it is easier to create new lows. Therefore, it is essential to wait for a clear trend before making trading decisions, and not to act blindly.
2. Be cautious during sideways trading: In a sideways phase, the market direction is unclear, and frequent trading operations can easily lead to capital losses. Therefore, during sideways market conditions, do not rashly enter trades; patiently wait for clear signals is the wise choice.
3. Skillfully use candlestick patterns for decision-making: When a bearish candlestick appears, consider buying depending on the situation; when a bullish candlestick appears, then choose to sell appropriately, strictly following market trends in operations, as acting in accordance with the trend can increase the chances of profit.
4. Insight into the rhythm of price fluctuations: When the downward momentum slows, the rebound process is usually slow; whereas when the decline accelerates, the rebound often comes quickly. Investors must remember this rule and resolutely avoid the impulse to chase highs and sell on dips to prevent unnecessary losses.
5. Use a pyramid trading strategy: During the position building process, adopt a strategy of building positions in batches and gradually increasing the investment. This method can effectively reduce holding costs and avoid the high risks associated with a one-time large investment, providing added security for investments.
6. Formulate a sideway trading strategy: When in a high position, do not rush to sell; when in a low position, do not hastily buy in large quantities. Be patient and wait for the market to develop further, resolutely avoid chasing highs and bottom fishing. Once the market shows a downward trend, timely clear positions to preserve existing gains.
However, it is crucial to be aware that investing in cryptocurrencies carries extremely high risks, with exceptionally volatile price fluctuations. Do not be overly greedy for high profits. Only by proceeding steadily, learning to reasonably diversify investments, and accurately grasping trading rhythms can one achieve relatively stable returns.