Insights from days in the crypto world! For friends who just entered the market

1. Don’t get attached to hot coins; when altcoins reach a certain profit, you should sell. Trying to ride all the way to the end will inevitably lead to disappointment. The reasoning is simple: altcoins cannot rise forever. When you’ve made profits, it’s time to sell; otherwise, you’ll fall back to square one.

2. When prices are high and consolidating before another rise, seize the opportunity to sell; when prices are low and consolidating with new lows, a good opportunity is likely to arise. When the price reaches new highs after a consolidation at high levels, be wary of market manipulation; when it’s time to reduce your position or exit, don’t hesitate. Conversely, if the price consolidates at low levels and then reaches new lows but quickly recovers, it’s likely a final shakeout by the market makers, and you should stay firm and resolute.

3. When the market environment is poor, price consolidations against the trend will rise; small increases against the trend can lead to large gains. When the market environment is good, price consolidations against the trend will decline; small declines against the trend can result in significant drops.

4. Only increase your position when making profits; don’t average down on losses. This may break the understanding of many seasoned traders. Our position should increase when the price breaks through previous highs, not when it’s continuously falling. Averaging down in this way will only deepen your losses, making it impossible to move later on. It’s essential to cut losses and let profits run.

5. As long as you identify the bottom price, there’s usually a pattern of two advances and one retreat. At this point, don’t doubt it; generally, a big surprise follows. Especially during a trending rise, the price often rises while also consolidating, so don’t get off the ride too easily.

6. Top-tier traders first look at sectors, second-tier traders focus only on single coins, third-tier traders look at indicators, and the lowest-tier traders just gamble. This means that when we want to buy a coin, we should first look at the sector. Only by engaging with hot sectors can we achieve high popularity and win rates, and then look at the tokens.

7. Indicators change with volume and price, so volume and price are the roots of indicators. If you look at indicators without considering volume and price, you’ll find trading cryptos to be troublesome. Indicators are calculated based on coin prices and trading volumes, so true technical analysis needs to look at volume and price; price increases require significant capital to drive them.

8. In an uptrend, look for support; in a downtrend, look for resistance. When prices are rising, operating based on support lines has a high success rate, providing opportunities for low buybacks. In a downtrend, operating based on resistance lines has a high success rate, providing chances to short or exit.