Starting from a principal of 60,000, I gradually rolled it over to more than 5 million, using this single trick to master the methods of buying and selling, organized as follows.
1. Those who know how to buy are apprentices.
The best trading strategy in the cryptocurrency world is:
a. Regardless of bull or bear markets, 5 layers of positions should be in BTC and ETH, and the remaining 5 layers should seek big opportunities.
b. When the bull market retraces, many altcoins drop to 10% or even 1%, at which point it's cheap to buy some promising altcoins with broad consensus, then wait for the bull market to arrive.
c. During a bull market, various hotspots emerge, such as artificial intelligence, GameFi, RWA, public chains, and platform tokens. You can invest a small amount in these hotspots for speculation, take profits when you earn more than 5 times, and convert everything into BTC and ETH. Clearly distinguish between 'living day by day' and 'playing around.'
The essence of finance is a Ponzi scheme. When the tide goes out, you will know who is swimming naked. Leaving before the bubbles of various new projects burst is a very smart move.
2. Those who know how to sell are masters.
When trading cryptocurrencies, you become a shareholder; never think you can sell at the highest point, as the highest point is only known in hindsight. Two more reliable selling methods are: target profit-taking and technical indicator-based methods.
Target profit-taking method: Contentment brings happiness; money is limitless. Nothing can rise indefinitely; fluctuations are the essence of trading markets, and everything has cycles. Set your profit target or expected price, place a limit order in advance. For instance, if you need 1 million to buy a house this year, set a price that allows you to profit 1 million. Place the order in advance, and it will automatically execute when the target is reached. Alternatively, use the ATH price as a reference point, as breaking through previous highs is often difficult and can lead to a significant drop when it occurs, so sell.
Set the selling price at about 4% below the peak of the phase.
Technical profit-taking method: Set MACD to (12, 26, 9), and choose the 5-day and 7-day moving averages on the K-line chart. When the 5-day moving average crosses down through the 7-day moving average forming a death cross, and the MACD's DIF line crosses down through the DEA forming a death cross, it indicates that a significant drop is about to start.
Taking ETH as an example, the significant drops on December 4, 2021, September 7, and May 13 can all be seen as validating this theory.
3. Only those who can hold cash are the true masters.
In a bull market, firmly hold your coins; in a bear market, firmly hold cash. The highest realm of trading is holding cash, as waiting for a significant drop and then entering to clean up the mess can yield the greatest profits. Holding cash is also difficult, as you must endure long periods of dull waiting and the FOMO mentality of watching others continuously make money. Based on ETH's volatility, you can expect a 20% drop about 4-5 times a year, which is still quite manageable.
