In the cryptocurrency world for many years, I have summarized the basic skills across 5 dimensions, all of which are essential!
1. Choosing the Trend: Grasping the Cycle and Direction
The cryptocurrency market has clear patterns, with a halving cycle every four years and the overlay of the Federal Reserve's monetary policy forming the core logic behind market trends. By capturing these two key elements and acting in accordance with the trend, one can ride the wave.
2. Choosing Coins: Careful Selection, Avoiding Risks and Choosing the Best
While there may be opportunities in accumulating coins at the bottom of a bear market, one must also be cautious of “bad” projects. Selecting coins requires a comprehensive analysis of the coin's fundamentals, institutional movements, and price performance, while paying attention to technology, sentiment, and narrative development to accurately identify potential coins.
3. Timing: Timing Determines Success or Failure
Once the desired token is selected, analyze the market to find the best entry timing. A lower cost allows you to remain calm amid fluctuations and maximize profits.
4. Taking Profits: Gradually Secure Gains
Achieving precise profit-taking is difficult; it is recommended to use a gradual profit-taking approach, leaving 10% of the position to feel the market. This allows you to lock in profits while not missing out on potential gains.
5. Position Management: The Lifeline of Risk Control
Reasonable position management is key to sustained profitability. One can adopt a principle of multiple positions, avoiding full position risk. Controlling the position allows one to maintain mindset and navigate the market freely.
The cryptocurrency world is never short of opportunities; what is lacking is a clear mind and solid basic skills when facing opportunities and risks.
