There are many ways to profit in the crypto space, among which the five most common and practical strategies are as follows:
1. Coin Accumulation Method (HODL)
This is the simplest yet most challenging strategy for human nature. You only need to select potential coins, buy and hold them for the long term, usually with a cycle of more than six months to a year. From a medium to long-term perspective, the profit space is enormous, with the potential to achieve several times or even ten times returns.
The challenge lies in mindset management: most beginners are prone to frequent operations due to short-term fluctuations, unable to resist selling when they see a coin price surge, or panicking and cutting losses during significant price drops. In reality, very few can hold steadily for over a year.
2. Buying the Dip in a Bull Market
This is an operation strategy specifically designed for bull markets, and it is recommended to use no more than 20% of total funds for short-term operations.
Choose coins ranked between 20 and 100 in market capitalization. These coins are not mainstream but will not be stuck in long-term loss. When a certain coin rises by more than 50%, convert it into another coin that is likely to drop sharply in the short term, and continue this back-and-forth operation to realize profits.
**Key Point:** Choosing coins should have fundamental support, avoiding coins with poor quality. Although most coins will eventually rise in a bull market, risk control remains crucial.
3. Pyramid Bottom Buying Method
Applicable as a layout strategy during significant declines, entering funds in batches.
Based on the current price, set buy orders at different price levels such as 80%, 70%, 60%, and 50%, allocating 10%, 20%, 30%, and 40% of the position respectively.
**Advantages:** Reduces the risk of one-time purchases; **Disadvantages:** Requires good risk control and psychological quality, as it is impossible to predict when to stop losses.
4. Moving Average Trading Method
This strategy is suitable for investors with a basic understanding of candlestick patterns.
Set common moving average indicators (MA), such as MA5, MA10, MA20, MA30, and MA60, to observe trends at the daily chart level.
When the coin price is above MA5 and MA10, it can be held continuously;
When MA5 falls below MA10, it is a sell signal;
When MA5 crosses above MA10, it is an opportunity to enter a buy position.
This method leans towards technical analysis and is suitable for short to medium-term operations.
5. Aggressive Coin Accumulation Method
Designed for investors familiar with certain quality long-term coins, combining swing trading and long-term holding.
For example, if a coin's current price is $8, it can be purchased at $7, and after a successful trade, place an order to sell at $8.8, reinvesting the profit into coin accumulation.
Funds can be rotated and used repeatedly for buying low and selling high. As long as there are three similar opportunities within a period, more chips can be effectively accumulated.
Entry price = current price 90%, selling price = current price 110%.
Unless the price has surged to 3-5 times or more, do not consider liquidating all positions.
The above five strategies each have their pros and cons, and no single method is suitable for everyone. The most important thing is to choose an operating method that suits your own capital scale, risk tolerance, and understanding of the market.
**Remember: Risk control is always the top priority.** It is not advisable to invest all funds into the crypto space. Careful assessment of market changes and flexible strategy adjustments are essential for long-term success.