After several years of trading cryptocurrencies, I’d like to share my personal insights! I entered the crypto space early in my trading career. Looking back over these years, I have hardly fallen into those petty business disputes, and I have faced fewer worries; because of this, I have the leisure and patience to summarize my insights over the years.
In my view, the mindset is of utmost importance in trading cryptocurrencies; technical skills are secondary. Next, I will share my valuable experiences without reservation. A day in the crypto world is like ten years in the real world, showcasing its ever-changing landscape. I suffered significant losses when I first entered, experiencing both losses and gains along the way, and now I support my family through this.
Summarize a few experiences for everyone's reference; it's hard to lose if you do this well.
Market Maker's Protection of Coins: When the market crashes, if your coins do not drop, it is likely protected by market makers. These coins may have solid fundamentals or potential favorable news; hold them steady, as there is significant profit potential ahead.
Beginner's Moving Average Guide: Beginners should pay more attention to macro information when buying and selling. For short-term trading, watch the 5-day moving average; hold above the line and exit below. For medium-term trading, pay attention to the 20-day moving average and operate similarly. Stick to a simple moving average strategy and act decisively. Short-term Response Strategy: If you buy a coin and it doesn’t move for three days, change it immediately. If it drops and you lose 5% right after buying, decisively cut losses, efficiently use funds, and avoid further losses.
Timing for Recovery after a Sharp Decline: When a cryptocurrency has been halved from a high position and has fallen for nine consecutive days, it may have hit bottom, and a rebound is imminent; decisively buy to catch the rebound. Investment Logic for Leading Coins: In the crypto world, focus on leading coins, which tend to have strong upward momentum and resilience against declines. Don’t hesitate due to high prices or significant drops; buy when the upward trend is established and sell upon reversal.
Balancing Bottom-Fishing and Trends: Don’t be fixated on bottom-fishing; declining coins may have no bottom. Investments should follow trends, accurately grasping entry timing, as the probability of profit is high when entering in an upward trend.
Building a Trading Strategy: In the crypto world, don’t be complacent after a profit; consistent profits are what’s difficult. After each profit, review whether the strategy was effective or if it was just luck, and build a strategy that suits you.
Using a Cash Position Strategy: When uncertain about the market, hold cash; safety of funds is the priority. Entering the crypto space should be for stable asset appreciation, not for gambling-style investments; trading is about success rates and profit-loss ratios.
Key Points for Investing in New Coins: New coins may see price increases due to optimistic market sentiment, but they may lack fundamental support. When market sentiment changes, capital withdrawal can lead to price collapses; investment should be cautiously assessed.
Consensus and Wealth in the Crypto World: Digital currency develops through consensus mechanisms, and participants earn wealth through belief and effort, showcasing the power of consensus and the potential for wealth creation in the crypto space. If someone is confused by market fluctuations and doesn't know how to deal with being trapped, or feels misled during operations, remember to learn more.
