In the cryptocurrency world, there are as many opportunities as there are pitfalls. Whether you're an old hand who's been scared off or a newbie just entering the game, without a reliable strategy, you'll eventually pay tuition. The following 10 practical tips will help you build an investment framework and avoid years of detours—
1. Iron rule for entry: Capital is your lifeline! Use 'laddering' to build your position, and don't exceed 10% of your total position for the first purchase. Set a stop-loss line that must be followed; if it is breached, exit without hesitation.
2. Bottoming signal: Don’t blindly shout 'bottoming'! First, look at the weekly chart for the big direction, then use the daily chart for details. Signals like volume shrinking to a sesame seed and MACD divergence are reliable. Beware of main forces setting traps to lure you into shorting.
3. Swing trading strategy: Reduce your position by 30%-50% when breaking previous highs. If there’s a sudden drop of over 15%, gradually pick up chips; don’t be idle during sideways movement, utilize grid trading for automatic low buying and high selling to capture swing differences.
4. Holding mentality: Is sideways movement frustrating? It might be the prelude to a major trend! Making random moves now means giving the main forces an easy kill; hold on tightly, don’t exit before the main wave starts.
5. Aggressive profit-taking: During violent surges, use 'trailing stop-loss'. When the price rises by 10%, raise your stop-loss to the cost price; with each subsequent 5% increase, move it up to firmly lock in profits.
6. Averaging down strategy: Don't rush to average down when the price drops! Use the 'pyramid averaging down method', starting with 50% of your base position for the first buy, and buy less as prices decline. Increase the distance between purchases, and don't fire all your bullets at once.
7. Observation wisdom: When the price is oscillating in a range, keep your hands off! Convert funds to stablecoins to earn interest, or mine in DeFi, which is better than getting scammed back and forth.
8. Cycle signals: If prices are consolidating at a high and making a second attempt to break higher, exit when RSI exceeds 80; if prices are low and probing a second bottom, and KDJ falls below 20 with increased volume, entering at this time has a high success rate.
9. Trading discipline: Remember 'don’t sell at highs, don’t buy at lows'! Fill out your trading plan before each operation, blacklist 'emotional' responses, and machine-like execution is what profits.
10. Intraday techniques: For day trading, watch the time periods—take profits quickly during morning surges, afternoon rises are likely to be traps, and during late trading, you can try going long with light positions. Don’t rush to cut losses during morning drops; wait for stabilization.
These rules are not rigid dogmas; they should be flexibly applied in accordance with your own style and the market rhythm. The core principle is simple: control risk, and profits will naturally follow. Making money in the cryptocurrency market relies not on luck but on repeatedly executing simple rules to perfection.
