Cryptocurrency Survival Guide: How Can Retail Investors Make Money in a Bull Market?

A bull market is a golden opportunity for retail investors to increase their wealth, but the high volatility and information asymmetry in the cryptocurrency space often turn blind followers into 'chives' (a term for inexperienced investors). To get a piece of the pie in a bull market, one must master the following strategies:

1. Choose the Right Track, Avoid Speculation

At the beginning of a bull market, mainstream coins like Bitcoin and Ethereum often take the lead, followed by altcoins in hot sectors (such as DeFi, AI, L2) that surge. Retail investors should prioritize projects with actual use cases and avoid chasing illogical 'air coins.' For example, in the later stages of a bull market, one could focus on low market cap, high innovation potential coins, but must strictly evaluate the project background and team strength.

2. Trend is King, Technology is Support

Utilize moving average systems (such as the 20-day moving average) to determine the trend: gradually build positions when the price stabilizes above the moving average, and decisively cut losses if it falls below. Combine with MACD indicators to capture buy signals and avoid chasing highs when market sentiment is overly optimistic. For instance, when a 'golden cross' appears on the daily chart, it can be seen as a short-term buy signal.

3. Beware of 'False Bull Market' Traps

During the mid-bull market, a 'universal rise illusion' often occurs, but the explosive growth of junk coins is usually a risk signal. If you notice signs like 'all coins rising indiscriminately,' 'social media FOMO is overwhelming,' or 'institutional funds have not substantially flowed in,' you need to be cautious of a bubble burst. At this point, one should gradually reduce positions and turn to safe-haven assets.

4. Long-term Holding, Compound Interest is King

For blue-chip coins like Bitcoin, one can adopt a strategy of 'dollar-cost averaging in bear markets and holding in bull markets.' Data shows that Bitcoin's price increases by more than 10 times in each bull market, but 80% of the volatility occurs within 20% of the time. Retail investors should abandon the fantasy of 'short-term high sell low buy,' holding quality assets on an annual basis to achieve wealth growth through compounding.

A bull market is a testing ground for retail investors and for human nature. Only by maintaining rationality and strictly adhering to discipline can one exit the bubble unscathed. Remember: the cryptocurrency space is not short of wealth myths, but lacks those who can survive to the next bull market.

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