6 Types of Operations in the Cryptocurrency Market
1. Holding Coins Method: Suitable for Bull and Bear Markets.
The holding coins method is the simplest yet also the most challenging strategy. It is simple because it involves buying a certain coin or several coins and then holding them for more than six months or a year without any transactions. Generally, the minimum return is at least tenfold. However, beginners often find it difficult to resist the temptation of high returns or panic when the coin price halves, leading them to consider switching or exiting. Many people struggle to avoid trading for just a month, let alone a year.
2. Buying the Dip in a Bull Market: Only Suitable for Bull Markets.
Use a portion of spare cash, ideally no more than one-fifth of your total funds. This strategy is suitable for coins with a market cap between 20-100, as they are less likely to get stuck for too long. For example, if you buy a particular altcoin and it rises by 50% or more, you can then exchange it for another coin that has experienced a significant drop, continuing this cycle. If you get stuck with the first altcoin, just wait; the bull market will surely provide an opportunity to get out.
3. Hourglass Switching Method: Suitable for Bull Markets.
In a bull market, almost any coin you buy will rise. Funds act like a giant hourglass, slowly trickling into each coin starting from the large ones. There is a clear pattern in coin price increases: leading coins rise first, such as BTC, ETH, DASH, ETC, followed by mainstream coins like LTC, XMR, BNB, NEO, DOGE, SHIB, etc. Then, there is a broad increase in coins that haven't risen yet, like RDN, XRP, ZEC, and finally, various small coins take turns rising.
4. Pyramid Bottom Buying Method: Suitable for Predicted Major Drops.
Bottom buying method: Place orders to buy one-tenth of your position at 80% of the coin price, one-fifth at 70%, one-third at 60%, and one-fourth at 50% of the coin price.
5. Aggressive Holding Method: Stick to Coins You Are Familiar With, Only Suitable for Long-Term Quality Coins.
With some liquid funds, if a coin is currently priced at 8 dollars, place a buy order at 7 dollars. Once the buy order is successfully executed, place a sell order at 8.8 dollars. Profit comes from holding coins. Take out the liquid funds and wait for the next opportunity. Adjust dynamically based on the current price.
6. Small Coin Aggressive Play: If you have 10,000 RMB, divide it into ten parts and buy ten different types of small coins, preferably priced under 3 RMB. After buying, do not interfere.
If a particular coin triples, take back the principal of 1,000 RMB and invest in another small coin.
