1. In-depth research and selection of potential coins
Long-term investment in mainstream coins: Mainstream cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have high market recognition and relative stability. Although their prices are highly volatile, they show a growth trend in the long term. For example, during past market cycles, Bitcoin has repeatedly broken historical highs. Investors can invest a certain percentage of funds (e.g., 100 - 500U) monthly in mainstream coins through regular investment. When the price shows a 10% - 15% pullback, increase the position appropriately to average the cost and hold for long-term appreciation.
Exploring potential emerging coins: Focus on new cryptocurrency projects with innovative technologies and application scenarios. These projects may have low market capital at first, but if their concepts and technologies gain market recognition, their prices may rise significantly. For example, projects focusing on decentralized finance (DeFi), blockchain gaming, and the integration of artificial intelligence and blockchain. When selecting emerging coins, conduct thorough research on the project's whitepaper, team background, community activity, etc. You can check platforms like CoinMarketCap and CoinGecko for project market capitalization, trading volume, price trends, and other data. However, investing in emerging coins carries high risks, and it is recommended that the investment proportion does not exceed 10% - 20% of total funds.
2. Use technical analysis for swing trading
Master technical indicators: Learn and apply common technical analysis indicators such as Moving Averages (MA), Relative Strength Index (RSI), and Moving Average Convergence Divergence (MACD). For instance, when the short-term moving average crosses above the long-term moving average, it may signal a buying opportunity; conversely, when the short-term moving average crosses below the long-term moving average, it may signal a selling opportunity. The RSI indicator can help judge market overbought and oversold conditions; when RSI exceeds 70, the market may be overbought, and there is a risk of price pullback; when RSI falls below 30, the market may be oversold, and there may be a rebound opportunity.
Determine the trading range: Analyze price trends and technical indicators to identify suitable trading ranges. For example, when judging that a cryptocurrency is in an upward trend, buy when the price retraces to a key support level (such as the 60-day moving average) and a volume surge occurs. Sell part of the position to lock in profits when the price rises to a certain target level (such as a 30% - 50% increase). At the same time, set a stop-loss level, usually at 10% - 15% below the purchase price, to prevent significant losses due to sharp price drops. The investment in each trade should not exceed 20% - 30% of total funds to avoid overall fund impact from a single trading mistake.
3. Participate in primary market investments
Focus on quality project presales: Some new cryptocurrency projects conduct presales before going live on exchanges, allowing early participants to acquire tokens at lower prices. For instance, projects with innovative concepts and strong team backgrounds have attracted many investors during the presale phase. However, participating in presales requires careful evaluation of project risks, reviewing the project whitepaper, team member information, advisory team, etc. Project presale information can be obtained through cryptocurrency news platforms and official project websites. However, investing in the primary market carries high risks, and projects may face development failures or scams; thus, the investment amount should be kept within 5% - 10% of total funds.
Participate in Launchpad projects: Some well-known cryptocurrency trading platforms launch Launchpad projects to provide fundraising and listing services for quality new projects. Participation in these projects usually requires holding a certain amount of platform tokens and participating in a lottery or subscription according to platform rules. For example, in Binance's Launchpad project, investors can use BNB to subscribe to newly listed project tokens. Participation in Launchpad projects is relatively formal, but competition is fierce, and the acceptance rate is low. Before participating, fully understand the project's basic situation and investment risks.
4. Reasonably use leveraged trading
Understand the principle of leverage: Leverage trading can amplify investment returns, but it also amplifies risks. For example, in Bitcoin trading, if the platform offers 10x leverage, when the Bitcoin price rises by 10%, the return on leveraged trading will be 100% of the principal (excluding fees and other costs). However, if the price falls by 10%, it may lead to a total loss of the principal. Before engaging in leveraged trading, one must fully understand the leverage multiple, interest calculation methods, liquidation risks, etc.
Use leverage cautiously: If you decide to use leveraged trading, it is advisable to choose a lower leverage multiple (such as 3 - 5 times) to reduce risks. At the same time, strictly set stop-loss levels to prevent liquidation due to significant price fluctuations. The funds allocated to each leveraged trade should not be too high, generally controlled at 10% - 20%. For example, when predicting a rise in Bitcoin prices, use 1000U as the principal to buy Bitcoin worth 3000U with 3x leverage, while setting a stop-loss level at 5% - 10% below the purchase price. During leveraged trading, closely monitor market dynamics and adjust positions in a timely manner.
5. Utilize platform activities to gain profits
Trading platform points activities: Some cryptocurrency trading platforms launch points activities where users can earn points through trading, completing specific tasks, etc. Points can be exchanged for digital currencies or participate in other benefits on the platform. For example, Binance's Alpha points activity allows users to earn points through trading, and points reaching a certain threshold can redeem airdrop rewards. When participating in such activities, understand the activity rules, points acquisition methods, and consumption mechanisms in detail to effectively arrange trading for maximum profit.
New user promotions and referral rewards: Some trading platforms offer registration rewards, trading fee discounts, and other benefits to attract new users. Additionally, some platforms have referral reward programs where users can earn a certain percentage of trading fee rebates or other rewards by inviting new users to register and trade. When choosing a trading platform, pay attention to these promotional activities and rewards to increase earnings. However, be cautious of the platform's security and compliance to avoid losses from participating in unregulated platforms.
6. Risk management and mindset adjustment
Reasonable allocation of funds: Do not concentrate all 1000U funds on one cryptocurrency or one investment strategy. Distribute funds across different areas such as mainstream coins, potential emerging coins, participation in primary market projects, and leveraged trading, allocating different percentages of funds based on risk tolerance. For example, invest 40% of the funds in mainstream coins for long-term holding, use 30% for swing trading, 20% for participating in the primary market, and 10% for trying leveraged trading.
Set stop-loss and take-profit levels: In every trade, clearly set stop-loss and take-profit levels. The stop-loss level helps control losses and avoid significant losses due to sudden market reversals; the take-profit level helps lock in profits and prevent missing the best selling opportunity due to greed. For example, after buying a certain cryptocurrency, set the stop-loss level 10% below the purchase price and the take-profit level at an increase of 30% - 50%.
Stay calm and rational: The cryptocurrency market is highly volatile, and rapid price fluctuations can easily trigger emotional responses from investors. During the investment process, maintain calmness and rationality, and do not be swayed by market emotions. Avoid blindly following trends and making impulsive trades; strictly adhere to your established investment strategy and plan. Regularly review your investment portfolio and trading records to summarize lessons learned and continuously optimize your investment strategy.
