If you want to make money in the cryptocurrency market, you need to know these six golden rules:
1. You should divide your money into five parts, only using one-fifth at a time for trading. If you lose 10%, leave immediately. This way, even if you lose five times in a row, you would only lose one-tenth of your total amount, which won't hurt much.
2. You must follow the market trend and not go against it. When the market is down, rebounds may be traps; when the market is up, pullbacks might be a good opportunity to make money.
3. Never chase coins that have already skyrocketed; they are too high and can fall at any time.
4. You need to learn to read the MACD indicator, which can help you find the best entry points. When the DIF and DEA lines cross below the zero axis and then break above it, that's a good buying opportunity; if they cross above the zero axis and then head downwards, that’s a signal to sell.
5. Remember, never add to your position when you are losing money; add to your position when you are making money. You need to watch the volume-price relationship: if the price breaks out with high volume when it's low, it may go up; if it doesn't rise with high volume when it's high, you should run. When selecting coins, choose those with good trends and value.
6. Review your trading every week to see what you did well and what you did poorly, and adjust your strategies in a timely manner.
These six golden rules are the lessons I learned from painful experiences. If you follow them, you will definitely thrive in the cryptocurrency market.
