I used the dumbest method for trading cryptocurrencies, and my win rate is close to 100%! (A must-read for all cryptocurrency traders)
1. Position management to reduce risk
The core principle of position management is to diversify risk and not invest all your funds into a single trade. If you have 30,000 USDT, you can split it as follows:
Divide the funds into 3 parts, each part being 10,000 USDT. $ETH
Use one part for each trade. This way, even if you incur losses, your total capital won't be affected. $BTC
Specific leverage settings: For major cryptocurrencies (like Bitcoin), use no more than 10x leverage; for altcoins, leverage should not exceed 5x.
2. Adding and reducing positions #币圈
When in profit, you can consider adding to your position. Especially when the market trend is clear and the situation is good, adding to your position can amplify profits. However, before adding, ensure that your cost has been lowered to avoid blindly increasing your exposure, which could lead to greater risk. One misconception to avoid here is: unrealized profits are not a reason to add to your position indefinitely; you must ensure the market trend continues to develop favorably. #币圈暴富
3. Set take profit and stop loss to avoid excessive greed #比特币
Setting take profit and stop loss is a basic operation every investor needs to establish. If the stop loss is not set properly, you might miss the opportunity to exit due to small fluctuations, leading to significant losses; if the take profit point is unreasonable, you may miss out on profits when the price reverses. A reasonable take profit and stop loss strategy not only helps you protect profits but also avoids emotional interference from chasing prices. #加密市场反弹
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