After many years of experience in the cryptocurrency space, I have accumulated quite a bit of knowledge. Today, I would like to share these trading insights with everyone, hoping it can be helpful to you all.
1. Bubble Crisis of Popular Coins: In a bull market, those popular coins that are heavily speculated upon, especially those that are tightly controlled, may appear to be thriving with rapid increases, but they actually hide crises. They are like balloons that have been overly inflated; the faster they rise, the bigger the bubble. Once the market direction changes or speculation fades, the price can drop rapidly like free fall, and risks will multiply. Therefore, for these popular coins, we should not be deceived by their short-term gains but rather be wary of the huge risks lurking behind them.
2. Analyzing the Harvesting Tactics of Altcoins: The operation mode of altcoins often follows a fixed pattern. Major players typically begin by crashing the price to accumulate enough chips, then raise the price to attract many followers. Once the number of followers reaches a certain level, the major player will look for opportunities and change tactics to harvest again. Although this mode seems clichéd, it has proven effective in practical operations. Therefore, before participating in altcoin trading, we must prepare ourselves mentally and remain clear-headed, not being tempted by superficial price increases.
3. Insights into Long-Term Market Trends: From a long-term perspective, the overall trend of the cryptocurrency market is relatively stable and upward. Although short-term fluctuations in the market may be severe and prices may be volatile, this is just the market's norm. In the long run, the market often shows a tendency to slowly rise. This tells us that when investing in cryptocurrencies, we need to have sufficient patience and avoid frequent buying high and selling low, as patiently waiting may yield better returns than blind trading.
4. The Path to Discovering Potential Markets: Coins with real potential often develop quietly at the market's bottom stage, without attracting public attention. They do not attract a lot of eyes and funds in the short term like those popular coins. Instead, these low-profile accumulating coins gradually rise unnoticed, demonstrating strong potential. To discover these potential coins, we need to have sharp insight and sufficient patience, deeply researching the market and the projects themselves, rather than merely focusing on superficial hot topics.
5. Risk Warning for Newly Launched Coins: Newly listed coins on exchanges are often filled with risks, including traps set by major players. These new coins often experience wild price fluctuations when they first launch, making them difficult to grasp. Many investors are attracted by their short-term gains, blindly following the trend to buy in, only to become 'prey' for the major players. Therefore, for those newly launched coins that experience dramatic ups and downs, we should maintain a cautious attitude and avoid participating easily.
6. Mental Training Under Normal Market Fluctuations: In the cryptocurrency space, it's common to see situations where buying leads to drops and selling leads to rises. Market fluctuations are inevitable; if we cannot withstand the psychological pressure brought on by these fluctuations, we can easily be swayed by market emotions and make incorrect decisions. Therefore, we need to constantly train our mindset to remain calm and rational amidst the ups and downs, and not be influenced by temporary gains and losses.
7. Assessing the Value of Rebounding Coins: Those coins that rebound most fiercely in the short term are often the result of speculative trading. Their price rises may only be fleeting and do not possess long-term value support. In contrast, truly potential coins tend to have more stable price fluctuations, and their rise is based on solid fundamentals and actual application value. Therefore, we should not blindly chase a coin just because it has a large rebound, but rather analyze the underlying value to avoid being deceived by superficial appearances.
8. Interpreting Signals of Sudden Corrections: When we buy a coin and see some gains, if the price suddenly corrects, it might be a signal that the major player is selling off. In this case, we need to closely monitor changes in volume and price. If the trading volume increases but the price cannot stabilize, it is likely that the major player is selling at high levels, and we should cut our losses in time to avoid becoming a victim of a high-level takeover.
9. Exploring Dark Horse Coins in the Second Half of the Bull Market: In a bull market, some coins may perform mediocrely at first and not attract much attention. However, in the second half of the bull market, they may suddenly explode like marathon runners sprinting at the end, achieving several-fold gains. These coins often possess underlying value and development potential, making it worthwhile for us to pay attention to market rotation opportunities and prepare in advance to share in the profits when they explode.
10. Exploring Potential in Sideways Markets: In a bull market, some coins may not immediately drop after experiencing severalfold increases, but instead enter a sideways state that can last for months. This sideways movement may indicate that they are building momentum, ready to welcome the next wave of upward trends. For these types of coins, we need to closely monitor their fundamentals. If the fundamentals are solid, they may very likely experience a new breakout in the near future, and we should be prepared to seize the opportunity.
I have navigated the market for many years and am well aware of the opportunities and traps within. If your investments are not going well and you're feeling regret over your losses, leave a 999 in the comments! I will share my insights!
