Trading cryptocurrencies can be complex or simple. We can simplify complex things, but it is not advisable to overthink simple things, as it can affect decision-making, lead to indecision, and cause us to miss good opportunities and plans. When we realize we have missed out, the price may have already surged and pulled back by the time we enter the market, which is undoubtedly very passive.
To learn cryptocurrency trading quickly, we first need to know how to use trading platforms and be familiar with buying and selling.
The first thing is to learn to read candlestick charts. For short-term cryptocurrency traders, you can build positions during a decline, rather than getting anxious to buy when the price seems to be rising. For example, if the price drops by 10%, 20%, or 30%, a slight drop can allow you to open a position or continue waiting. After waiting for 15 minutes or 1 hour, when the price has dropped to a certain extent, we can proceed to buy. Then, during the upward trend, gradually sell off to develop trading habits.
Chasing highs and selling lows is behavior of amateurs, and this is a big taboo. No matter what, the cryptocurrency market is also a trading market, so since there is trading, there will naturally be rises and falls.
A drop naturally leads to a rebound; this is a market rule and a consensus among traders that facilitates the operation of the market.
First, learn to read naked candlestick patterns, and if you are a short-term trader, you can build positions during declines, rather than anxiously buying when prices rise. For example, if the drop reaches 10%, 20%, or 30%, after a small decline you can allocate one-tenth of your capital or continue waiting. After waiting for 15 minutes or 1 hour, when the price has dropped to a certain level, we can arrange to buy. Then, during the rise, gradually sell off to form a trading habit.
Chasing highs and selling lows is behavior of amateurs, and this is a big taboo. No matter what, the cryptocurrency market is also a trading market, so since there is trading, there will naturally be rises and falls.
A drop naturally leads to a rebound; this is a market rule and a consensus among traders that facilitates the operation of the market.
Here are some tips for learning to trade cryptocurrencies:
1. Invest with spare money; avoid borrowing money to trade cryptocurrencies—invest money + invest energy.
2. Strictly screen for valuable coins and create a reasonable capital allocation plan that aligns with reality—Sunny Investment Strategy.
3. Averaging down—after entering the market, it is normal to have a pullback, so allocate your funds reasonably and enter in batches.
4. Refuse to go all-in; allocate positions reasonably, do not put all your eggs in one basket, and effectively reduce risk.
5. Keep your eyes open—stay updated with fast news in the cryptocurrency circle and the latest financial news. The earlier you know, the better you understand and the sooner you make money.
6. Think in reverse; do not go against the market or the big players, go with the flow and act according to the trend.
7. Open contracts without going all-in, use leverage of 20-50 times, do not easily use 100x leverage, do not seek to get rich overnight, but seek steady profits.
8. Manage your income well—managing your position is more important than anything else. If you're unsure, do not operate easily; if you don't trade, there is no risk and you won't lose money. Take some time to check on your assets and see if they are being managed properly.
9. The bottom is in your mind, the top is in your mind, do not be afraid, the cryptocurrency market will only help you grow; mindset is more important than operation. Remember the methods of trading cryptocurrency, and do not worry about not making money! Before trading cryptocurrencies, one should study and understand why cryptocurrencies exist. Generally speaking, the reason many people enter the market may be speculation for quick profits, but the deeper meaning of cryptocurrencies is about decentralized financial control, design, and fund settlement. For example, cryptocurrencies are like money with wings; with the help of encryption technology, users no longer need to rely on banks but can become their own banks and use free applications on their phones. Therefore, after investors understand cryptocurrencies, they will have a solid foundation when entering the cryptocurrency market.