4 Major Methods to Make Money in the Cryptocurrency Market: Master the Following Three for Easy Earnings!
1. Long-Term Holding Method: Suitable for Bull and Bear Markets
The long-term holding method is one of the simplest yet most challenging strategies. Choose a few cryptocurrencies and hold them for more than six months or a year without making any trades. Usually, this strategy can yield at least ten times the investment return. However, many beginners find it difficult to stick with it due to price fluctuations, which is the biggest challenge of this strategy.
2. Bull Market Momentum Trading Method: Suitable Only for Bull Markets
In a bull market, use no more than one-fifth of your total funds as idle capital. This strategy is suitable for selecting cryptocurrencies ranked between the 20th and 100th by market capitalization, as these cryptocurrencies typically do not get stuck for long periods. For example, when an altcoin rises by 50% or more, you can exchange it for another temporarily declining cryptocurrency, and so on. If the chosen cryptocurrency gets stuck, remain patient and wait, as a bull market often brings opportunities to break free. However, the success of this strategy depends on the quality of the selected cryptocurrencies and the market environment, so beginners should operate cautiously.
3. Capital Hourglass Strategy: Suitable for Bull Markets
In a bull market, capital typically flows gradually from large-cap cryptocurrencies to small-cap ones, resembling a giant hourglass. Price increases usually start with leading large-cap coins and then gradually pass to other cryptocurrencies.
4. Pyramid Bottom-Fishing Method: Suitable for Predictable Large Drops
This strategy is suitable for situations where large-scale drops can be predicted. When bottom-fishing, you can place buy orders at 80%, 70%, 60%, and 50% of the coin's price in batches, using position ratios of one-tenth, one-fifth, one-third, and one-fourth to allocate funds.
Each of these strategies has its advantages and risks, and it is crucial to choose a strategy that suits your risk tolerance and market environment.
