Recently, my uncle has been pondering a question—during this sluggish market for airdrops, where rights protection is constantly emerging, airdrops might provide some gains, but ultimately it's just a small part of the cryptocurrency market totaling over 20 trillion. Understanding technical analysis in the secondary market is essential to avoid being cut! Today, my uncle will take you from zero to learn some basic trading knowledge together:

I. Basics of Trading: Understand these first, then talk about making money

1️⃣ Exchange Type

  • Mainstream exchanges in the crypto world are divided into two categories: centralized exchanges (CEX) like Binance, suitable for beginners, easy to operate but with asset custody risks;

  • Decentralized Exchanges (DEX) like Uniswap, Jupiter, etc., hold assets but have poor liquidity. Remember: for large transactions, prioritize CEX, for speculative small coins, you can try DEX.

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2️⃣ Order Types

  • Limit Order: Set a target price for execution to avoid slippage (suitable for placing orders in advance);

  • Market Order: Immediate execution, but it can easily incur losses when prices fluctuate significantly;

  • Stop Loss Order: Automatically sell when the specified price is breached, a tool against market crashes.

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3️⃣ Trading Pairs and Leverage

  • Spot Trading: Directly buying and selling using trading pairs like USDT/BTC, with lower risk;

  • Contract Trading: Leverage amplifies profits (and losses), my uncle is a black hole in contracts, don't get caught up in it.

II. Basic Trading Technical Indicators

Candlestick Chart (English: Candlestick chart) is a type of chart that reflects price trends. Its feature is to condense and organize the price trends of an asset over a period and use different colors and shapes to convey price information and market sentiment for investors to analyze.

1️⃣ Basics of Candlestick Charts

  • Basic Patterns: Bullish Candle (up), Bearish Candle (down), Upper and Lower Shadows (tug-of-war between bulls and bears).

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2️⃣ Key Signals

  • A long upper shadow is a signal of a downtrend, indicating that traders are seeking to sell and take profits. The longer the upper shadow, the stronger this signal.

  • A long lower shadow is a bullish signal, indicating that investors are competing to buy, thus pushing up the price. The longer the lower shadow, the more reliable this signal.

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  • Engulfing Pattern: A large bullish candle covers the previous day's bearish candle, indicating an upward trend.

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  • Doji: The opening price and closing price are the same, indicating that the market is in a wait-and-see state, and it may also signal an upcoming price reversal.

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3️⃣ Trading Volume

  • Volume and Price Rising Together: The increase is supported, for example, on April 9 when Bitcoin's price reached $81,000, the trading volume surged.

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Alright, that's all for today~ In the next article, we will continue to study technical indicators like MACD, RSI, and Bollinger Bands, let's all improve our understanding together ❤️