After struggling in the cryptocurrency world, my deepest realization is: the key to trading cryptocurrencies is mindset, while technology is secondary. The following 8 practical summaries are experiences gained from pitfalls in the market:
1. The logic of cryptocurrency price fluctuations is different: Bitcoin is mostly the 'leader' in price movements; high-quality mainstream coins like Ethereum can occasionally break away from Bitcoin's influence to show independent trends; while altcoins generally cannot escape the influence of Bitcoin's price movements.
2. Bitcoin and USDT are inversely correlated: the two often show inverse movements. If USDT price rises, be alert for the risk of Bitcoin falling; conversely, when Bitcoin rises, it is a suitable time to buy USDT and reserve 'bullets'.
3. Opportunities can be seized during the 'spike' in the early morning: From 0 AM to 1 AM, price spikes often occur. Domestic crypto enthusiasts can set lower buy prices and higher sell prices for their desired currencies before going to sleep, and they might just 'profit while lying down.'
4. Focus on 5 PM: Due to time zone differences, American investors start to become active around 5 PM, which may trigger fluctuations in currency values. Many significant rises or falls have occurred during this time, so pay close attention.
5. Rational view on 'Black Friday': There is a saying in the crypto world about 'Black Friday.' Although there have been a few significant drops on Fridays, there are also instances of large gains or sideways movements. The accuracy is not high, so just keep an eye on the news that day.
6. Don't panic if quality currencies drop: If a quality currency with a certain trading volume support drops, there’s no need to panic. Patiently holding is likely to result in recovering your investment (shortest is 3-4 days, longest is 1 month). If you have extra funds, you can gradually buy in to lower your average cost and speed up recovery; if not, just wait quietly, as it usually won’t disappoint (but avoid poor-quality tokens).
7. Long-term holding in spot trading is more profitable than frequent trading: When trading spot, holding the same currency long-term usually yields higher returns than frequent buying and selling. The key is whether you can be patient enough to hold for the long term.
If you still feel confused, want to recover losses but lack direction, feel free to join us.
In this round of trading, let’s be steady and go further together.
