# 9 Rules of Cryptocurrency Trading! All learned from my mistakes, $ZEC is applicable too #Crypto Market Observation

Share 9 rules of cryptocurrency trading that I have summarized over many years of practice, simple and easy to execute, beginners can reduce losses by 80% by following them, and experienced traders can make profits:

1. I found a pattern: when the market crashes, if the coins you hold only drop slightly, it means there are big players protecting the price, not letting it fall. Such coins can be held with confidence, and there is a high probability of surprises later.

2. I recommend a simple method for beginners: for short-term trading, look at the 5-day moving average, hold if the price is above it, sell immediately if it breaks below; for medium-term trading, look at the 20-day moving average, hold above it, and decisively exit if it breaks below. The best strategy is what suits you, the key is to stick to it and not change halfway.

3. Once a main upward wave forms, if there is no significant volume, feel free to enter; continue to hold if it rises with volume, hold on if it drops with low volume but the trend is intact; if it drops with high volume and breaks the trend, quickly reduce your position, don’t hesitate.

4. I set strict short-term rules for myself: if there is no movement three days after buying, sell if you can, don’t waste capital; if it drops, cut losses unconditionally at 5%, never hold on to a losing position.

5. Oversold rebound signal: if a coin drops 50% from its peak and continues to drop for 8 days, it indicates an oversold state, a rebound could come at any time, you can try to enter with a small position.

6. I always choose leading coins: they rise the fastest when they go up and are the most resilient when they go down. Don’t buy junk coins just because they have dropped a lot, and don’t hesitate to buy leading coins just because they have risen a lot—the core is to buy high in an upward trend and sell even higher.

7. Trading must follow the trend: buying coins is not just about getting them cheaper, the key is to follow the trend and have a reasonable price. Don’t guess the bottom when it’s falling, quickly abandon underperforming coins, the trend is always the top priority.

8. Don’t get carried away by temporary profits: sustained profits are the hardest to achieve. After each profit, review whether it was luck or skill. Establishing your own stable trading system is fundamental to long-term profitability.

9. Don’t trade hard if you’re not sure: staying in cash is also a strategy, learning to stay in cash is very important. Protecting your capital before making a profit is vital, and it’s not about trading frequency, it’s about the success rate.