There is a very foolish method for investing in the cryptocurrency market, but this method can almost eat away all profits, so learn slowly.

First of all, when trading cryptocurrencies, never do three things.

The first thing is to never buy during a rise; be greedy when others are fearful and fearful when others are greedy. Make it a habit to buy during a decline.

The second is to never place large orders.

The third is to never go all in. Being all in makes you very passive, and this market is not short of opportunities; the opportunity cost of being all in is very high.

Now let’s talk about the six rules for short-term cryptocurrency trading.

The first is that after a high price consolidation, there will usually be a new high. After a low price consolidation, there will usually be a new low, so wait for the direction of the trend to become clear before taking action.

The second is to not trade during sideways movements; most people lose money in cryptocurrency trading simply because they cannot do this most basic thing.

The third is when selecting candlesticks, buy when a bearish candlestick closes and sell when a bullish candlestick closes.

The fourth is that a decelerating decline will have a slow rebound, while an accelerating decline will have a rapid rebound.

The fifth is to build positions using the pyramid buying method; this is the only unchanging principle of value investing.

The sixth is that when a cryptocurrency continues to rise or fall, it will inevitably enter a sideways state. At this point, there is no need to sell everything at a high position, nor is there a need to buy everything at a low position. After a consolidation, a trend change will inevitably occur. If the trend changes downward from a high position, it’s time to clear your positions; in any case, it's essential to act promptly.