Trading in cryptocurrencies seems simple, but there are pitfalls everywhere once you actually engage in it. If you want to make money in the long run, you can't rely on luck; you need to adhere to a few practical rules. These methods are not advanced, but those who can implement them are truly few.
The first rule, and the most important, is not to follow your emotions. When prices are soaring, and everyone is rushing in, you shouldn't join; when prices are plummeting, and everyone is scared, you should calmly look for opportunities instead. This is easy to say but hard to do; I have fallen into traps myself—chasing highs only to get stuck, cutting losses every time there’s a pullback; these are all lessons learned.
The second rule is to never invest all your money at once. Going all-in is like betting your entire fortune; when your mindset gets chaotic, your operations will become distorted. The market is never short of opportunities; if you have no cash on hand, when opportunities arise, you can only watch. Keep some backup funds so you feel more secure.
In terms of specific operations, I’ve summarized a few experiences that I’ve practical tested:
If the direction is unclear, don’t make a move. When the coin price is hovering at a high level, it may sometimes push to a new high; when it’s stuck at a low level, it might continue to break lower. Don’t guess; wait for the market to establish a direction on its own before acting.
Try to trade less during sideways movements. Most people lose money by frequently entering and exiting during these times, exhausting their fees and disrupting their rhythm.
Buy on days when there’s a big drop; sell on days with significant rises. For instance, if a daily chart shows a large bearish candle, consider buying in batches; conversely, when there's a large bullish candle, sell off a bit. This rhythm is very practical.
Pay attention to the speed of declines. If the drop is slowing down, rebounds generally lack strength; but if there’s a sudden acceleration in the drop, rebounds may also be quite powerful. This change can help you determine timing.
Building positions is like stacking blocks, starting from the bottom. The more it drops, the more you should gradually buy; this way, your cost can be averaged out, and you won’t fear short-term drops.
After significant rises, there will be sideways movements; after significant drops, there will be sideways movements too. Don’t sell your entire position during sideways movements, nor should you buy the bottom all at once. The key is to see which direction the market breaks out after the sideways movement and adjust accordingly.
Ultimately, trading cryptocurrencies is a battle with yourself. These methods may sound simple, but executing them requires strong discipline. I don't pursue instant wealth; as long as I can stabilize and earn slowly, that’s enough.
If you are feeling confused about trading recently, you can reach out to Sister Yan for specific entry points and timing; she will notify you as soon as possible!