Taboos in the cryptocurrency space:
1. Do not borrow money to trade cryptocurrencies, do not borrow money to trade cryptocurrencies, do not borrow money to trade cryptocurrencies.
If you borrow money to trade cryptocurrencies, it shows you have a gambling mentality, betting until you end up with nothing.
2. Do not go all-in on leverage, do not go all-in on leverage, do not go all-in on leverage.
Leverage +, all-in, gambling mentality, gamble until you have nothing left.
3. Do not trade cryptocurrencies on small platforms, as most small platforms are internal markets.
Internal trading is just creating a candlestick; your money has not entered the market but has gone into that shell company's account.
The game rules themselves dictate that most outcomes of leverage end up being zero; the capital behind loves to watch a group of retail investors go all-in on leverage because the next moment, the money will fall into their pockets!
What if? What if going all-in wins?
This market is one where you are in a battle of wits with market makers. Principles combined with patience are necessary to see the meat, and what you eat is also the meat of other retail investors; it is not a fair game.
If you happen to win by going all-in, it’s even scarier; you will think you are a god. With one win, there will be countless more. The money you win will eventually go back in.
As for those wealth-getting myths, just listen to them. In the words of a certain expert, this world is essentially a makeshift stage, where do all these myths come from?
When it moves sideways and suddenly drops, it must be a small drop; after a drop, there must be a rise. When it moves sideways and suddenly rises, it must be a small rise; after a rise, there must be a drop.
Sideways trading is a state of accumulating chips at the bottom. There is a question I haven't addressed before: why do market makers prefer sideways trading to accumulate chips?
When the market maker starts accumulating at the bottom, due to continuous buying, market purchasing power increases, and the available chips decrease, resulting in a price increase being inevitable.
So when the market maker enters the market, the price will no longer make new lows; this statement is very important.
So why choose sideways trading mode to accumulate chips?
In sideways trading, price fluctuations are small, retail investors will automatically exit after a long time without profit, which allows them to quietly pick up cheap chips at the bottom.
Even if I tell you these chips are cheap, and you hold them for a year without profit, can you withstand it? Very few retail investors can.
There are some short-term traders or speculators in the market, and sideways trading is the most effective defensive form to prevent these short-term traders from getting a chance to speculate.
Sideways trading does not have huge fluctuations, making it difficult to attract retail investors' attention; often, by the time you notice, the price has already hit the ceiling.
These are the advantages of sideways trading. After a period of sideways movement, if the market maker has acquired a certain amount of chips, the sideways pattern will begin to transform into a fluctuating mode, where the price moves up and down, with the goal of shaking off those uncertain chips. Once those uncertain chips are collected, the market maker's chips will also reach the collection target, and the next step is to rise.
So after sideways trading comes fluctuations. If it fluctuates downwards, it cannot be a major drop; if it drops below the market maker's cost price, it is a major incident. Therefore, when it moves sideways and suddenly drops, it must be a small drop, with the goal of shaking off the uncertain chips.
The opposite is also true.
If it has been sideways for a while and suddenly rises, it indicates a signal of initiating fluctuations for shaking the market. If it rises directly without fluctuations, it doesn't make sense (unless it's speculative capital making a quick exit). The chips are in the hands of each holder, and the daily natural flow is simply insufficient, requiring fluctuations to stir the market and accelerate chip circulation for rapid collection.
Even when moving upwards, it must fluctuate while going up; this is to shake off the following orders while also facilitating selling high and buying low.
Of course, some market makers will also adopt a strategy of first fluctuating and then going sideways; the purpose is the same.
Sideways trading is for quietly collecting chips, while fluctuations are for further collecting uncertain chips.
In fact, sideways trading and fluctuations are mutually inclusive; regular fluctuations within a range also belong to sideways trading. There is no absolute sideways trading—it's impossible for the price line to be completely horizontal, so the concept of sideways trading is broad.
This is a piece of advice aimed again at newcomers in the cryptocurrency space (something to engrave in your mind).
1: Do not trade on debt; trading cryptocurrencies on debt means overdrawing yourself, which is the most important.
2: Interact more with experienced individuals in the cryptocurrency space.
3: You may spend a little money to join some paid groups; who to choose is up to you, as long as you believe this blogger is credible and can genuinely teach you something, learn from their trading ideas.
4: Do not buy hot coins.
When a coin is at its peak popularity, or when the market is crazy about a certain coin, it is usually nearing the end. At this point, if you have held this coin beforehand, you might consider exiting. If you don't hold this coin, it is best not to enter the market again, as there is a 90% chance you are simply taking over.
5: Do not play on small exchanges; small exchanges are always at risk of running away or pulling the plug, and all your money in them will be unrecoverable.
6: Understand what 'shitcoin' mainstream coins are.
Shitcoins are bets on the chain, and due to their low market value, they fluctuate wildly, making it easy to multiply dozens or even hundreds of times, but the risks are equally large.
Altcoins are similar to Bitcoin and Ethereum, being derivative coins with different backgrounds and trends!
Mainstream coins refer to cryptocurrencies like Bitcoin, Ethereum, and Solana.
7: Understand what primary and secondary markets are.
Coins that you can buy on all exchanges are secondary market coins.
Level 1 refers to on-chain transactions, which are purchased on decentralized exchanges or WEB3 wallets. It is not recommended for newcomers to play in the first market, as it is very easy to be deceived into playing with 'Piqiu' coins.
8: Understand what left-side trading and right-side trading are.
Left-side trading: This means buying below the price and selling above when the market hasn't clarified yet, primarily using limit orders. For example, bottom fishing during a downtrend, believing this position will stop the decline, attempting to catch the bottom. This method carries relatively high risk.
Right-side trading: This means waiting for the market to clarify its direction, such as when the price starts to rebound or breaks through/breaks down key positions, then entering the market accordingly. This is chasing the trend; it is safer but may not capture the initial profit.
9: You should pay attention to some bloggers who share experiences, rather than focusing on those who brainwash you or promote instant profit.
10: Do not believe anyone who approaches you claiming they can help you make money!
11: Continuously learn; people cannot earn beyond their own understanding. Even if you make a lot initially, if your understanding doesn't match, you will quickly lose it back, and it may even lead to significant responsibility. You must keep learning and improve your understanding!
I hope every newcomer who just joined the cryptocurrency space can take fewer detours. Despite encountering various setbacks and losses, these are what you need to face in order to grow quickly!
The market is cruel, so we must develop strong skills to survive! Success is not accidental, and opportunities are also reserved for those who are prepared.
