In the crypto world, there is a strange phenomenon: when the market is good, everyone rushes into the market, fearing they might miss the opportunity; when the market crashes, everyone panics and cuts their losses, fearing they might lose even more. The result is that those who chase the rise become the 'bag holders,' and those who cut their losses hand over their bloody chips. My ability to steadily profit in the crypto world relies on 'contrarian thinking': when others panic, I am greedy; when others are greedy, I am cautious.
The most classic instance was during a crash in 2023, when the prices of mainstream assets dropped by 30%. The entire network was in panic, and many people hastily cut their losses and left the market. I discovered through on-chain data analysis that whale wallets were buying in large quantities, indicating that this was a rare bottom-fishing opportunity. I decisively took out a portion of my funds to buy at the bottom, and sure enough, not long after, the market rebounded, and I made a 50% profit.
'Contrarian thinking' is not about blindly buying the dip, but about having your own judgment criteria. My judgment criteria mainly consist of three points: first, look at valuations; when the price of mainstream varieties is below the historical average valuation, it has value for bottom-fishing; second, look at on-chain data; observe the movements of whales; when whales buy in large quantities, it is often a bottom signal; third, look at market sentiment; when everyone is pessimistic, that is when the opportunity arises.
Of course, buying the dip also carries risks. I never put all my money into buying the dip at once, but rather buy in batches. For example, if it falls 20% the first time, I buy 30%, if it falls another 10%, I buy another 30%, and if it falls another 10%, I buy 40%. This way, even if the market continues to fall, I can average down my costs. At the same time, I set strict stop-loss levels; if the price continues to drop more than 10% after I buy the dip, I will decisively cut losses to avoid larger losses.
Opportunities in the cryptocurrency circle are often hidden in panic. If you always follow the crowd, you will forever be a 'bag holder'. If you want to learn 'contrarian thinking' and make money by buying the dip when others are panicking, follow me, and I will share more tips and practical experience on bottom-fishing!@男神说币 #巨鲸动向 $BTC
