The Profitable Methods in Cryptocurrency Trading Summarized by an 8-Year Veteran
As an 8-year veteran in the crypto world, from experiencing liquidation dozens of times to now achieving a stable 90% winning rate, I have summarized a simple method for trading cryptocurrencies. This method, when used well, can almost capture all profits (I suggest liking and saving this to avoid losing it later).
First: Never do three things in cryptocurrency trading.
The first is to never buy in when prices are rising. Be greedy when others are fearful and be fearful when others are greedy. Develop the habit of buying when prices are falling and recognizing opportunities.
The second is to never place large orders. If a large order goes the wrong way, you won't even have a chance to recover, so only use 25% of your capital for each trade, keeping your reserve.
The third is to never go all-in. Being fully invested makes you very passive, and this market is full of opportunities. The opportunity cost of trying to experiment while fully invested is very high.
The fourth is that after price consolidation at a high level, there is usually a new high. Conversely, after consolidation at a low level, there is often a new low. Therefore, wait for the direction of the market change to become clear before making moves.
The fifth is to avoid trading during sideways markets. Many people lose money in trading because they cannot adhere to this principle; they might as well play games instead.
The sixth is to buy when the K-line is showing a downward trend and to sell when it's showing an upward trend.
The seventh is that when the decline slows, the rebound is also slow, and when the decline accelerates, the rebound will also accelerate.
The eighth is to build positions using a pyramid buying method; this is the only unchanging truth of value investing.
The ninth is that when a cryptocurrency continues to rise and then continues to fall, it will inevitably enter a sideways state. At this time, do not sell everything at a high price, nor should you buy everything at a low price. After consolidation, a change is inevitable. If the price changes from high to low, you need to close your positions in a timely manner.
The above is a summary from personal experience. If you have any questions, feel free to ask; I will reply when I have time!