There is a very foolish way to trade cryptocurrencies, but this method can almost eat up all the profits, so take your time to learn. First of all, when trading cryptocurrencies, we should never do three things.

The first thing is to never buy in when prices are rising; be greedy when others are fearful and fearful when others are greedy. Make it a habit to buy in when prices are falling.

The second is to never use leverage.

The third is to never go all-in; being all-in makes you very passive, and the market is never short of opportunities. The opportunity cost of going all-in can be very high.

Additionally, here are six rules for short-term cryptocurrency trading:

The first is that after the price consolidates at a high level, there is usually a new high. Similarly, after consolidating at a low level, it usually hits a new low, so we should wait until the direction of the trend becomes clear before taking action.

The second is to avoid trading during sideways movements; the majority of people lose money in cryptocurrency trading because they can't adhere to this simplest rule.

The third is when selecting candlesticks, when we see a bearish candlestick, we should buy in on the daily chart. When we see a bullish candlestick, we should sell.

The fourth is that when the downtrend slows, the rebound is also slow, and when the downtrend accelerates, the rebound will accelerate.

The fifth is to build positions using the pyramid buying method; this is the only unchanging principle of value investing.

The sixth is that when a cryptocurrency continues to rise or fall, it will inevitably enter a sideways state. At this time, we don't need to sell everything at high prices, and there's no need to buy everything at low prices. Because after consolidation, there will inevitably be a trend change. If the trend changes downward from a high level, we should clear our positions promptly; in any case, we must take timely action.