Summary of 10 experiences in cryptocurrency trading over the past few years for everyone's reference. If you lose money, come find me.
Cryptocurrency with market maker support:
When the market crashes and your cryptocurrency doesn't drop, there's a high probability that there is a market maker supporting it. Such cryptocurrencies either have solid fundamentals or potential favorable news. Hold on firmly, 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, observe the 5-day moving average, hold if above, exit if it breaks; for medium-term, focus on the 20-day moving average and operate similarly. Stick to a simple moving average strategy and act decisively.
Short-term adaptation strategy:
If the cryptocurrency bought does not move for three days, change it immediately. If it drops after buying and incurs a 5% loss, cut losses decisively, use funds efficiently, and avoid further losses.
Timing for rebound from oversold conditions:
If a cryptocurrency has halved from a high and has fallen for nine consecutive days, it may have little room left to fall, and a rebound is imminent. Buy decisively to capture the rebound.
Investment logic for leading cryptocurrencies:
When entering the cryptocurrency market, chase leading cryptocurrencies that have strong upward momentum and resilience to downturns. Don't hesitate due to high prices or significant drops; buy when the upward trend is established and sell during reversals.
Balancing bottom-fishing and trends:
Don't be fixated on bottom-fishing, as falling cryptocurrencies may have no bottom. Investments should follow trends, accurately grasp entry timing, and have a high probability of profit when entering during an upward trend.
Building a trading strategy:
Don't become complacent after a single profit in the cryptocurrency market; continuous profitability is the challenge. After each profit, review whether the strategy was effective or based on luck, and build a strategy that suits you.
Using a cash position strategy:
Hold cash when uncertain about the market, as fund safety is paramount. The goal of entering the cryptocurrency market is to steadily increase assets, without engaging in gambling-like investments, as trading relies on success rates and profit-loss ratios.
Key points for investing in new cryptocurrencies:
In the early stages, new cryptocurrencies may see price increases due to favorable market sentiment and influx of funds, but they may lack fundamental support. Changes in market sentiment can lead to a rapid price drop as funds exit, so investment should be cautiously assessed.
Consensus and wealth in the cryptocurrency market:
Digital currencies develop through consensus mechanisms, where participants earn wealth through belief and effort, showcasing the power of consensus in the cryptocurrency market and its wealth-creating potential.
If someone feels confused due to market fluctuations, not knowing how to respond to being in a losing position, or feels misled during the trading process, remember to keep learning.
