Trading cryptocurrencies can be complex or simple. We can simplify complex things, but it is not recommended to overthink simple things, as it can affect decision-making, leading to hesitation, missing good layout opportunities and plans. When you realize you missed out, the price may have already surged and retraced, making it very passive.
Quickly learn to trade cryptocurrencies, first, we need to learn how to use the trading platform, becoming familiar with buying and selling.
Then one is to learn to watch the naked K-line trend. At the same time, for short-term cryptocurrency traders, you can build positions during a decline, rather than looking bullish and being eager to buy. For example, if the decline reaches 10%, 20%, or 30%, you can allocate a portion of your capital when it drops slightly or continue to wait. After waiting for 15 minutes and 1 hour, when it has dropped to a certain extent, we can then plan our buying. Then, during the upward trend, gradually sell off, forming a trading habit.
Chasing up and down is a behavior of amateurs, and this is a big taboo. No matter what, the cryptocurrency market is also a trading market, and since it is trading, there will naturally be both rises and falls.
When it falls, there will naturally be a rebound; this is a market rule and a consensus among traders, which forms the operation of the market.
Then one must learn to read naked candlestick patterns. For short-term traders, positions can be built during declines without rushing to buy when prices rise. For instance, if the price drops by 10%, 20%, or 30%, a small decline might warrant a 10% position or to wait further. After 15 minutes or on the hourly chart, once the price falls to a certain extent, we can proceed to lay out our purchases. Then, during the rise, gradually sell off to form a trading habit.
Chasing up and down is a behavior of amateurs, and this is a big taboo. No matter what, the cryptocurrency market is also a trading market, and since it is trading, there will naturally be both rises and falls.
When it falls, there will naturally be a rebound; this is a market rule and a consensus among traders, which forms the operation of the market.
Tips for learning to trade cryptocurrencies revealed:
1. Invest with spare money; do not borrow money to trade cryptocurrencies - invest money + invest energy.
2. Strictly filter valuable coins and create a reasonable capital allocation plan that aligns with reality - Sunshine Investment Strategy
3. Averaging down - it is normal to have a pullback after entering the market, so allocate funds reasonably and enter in batches.
4. Refuse to go all in; allocate positions reasonably, do not put all your eggs in one basket, effectively reduce risk.
5. Keep an eye on all directions - watch cryptocurrency news and the latest financial news, knowing early means understanding early, and making money early.
6. Think reversely, do not go against the market or the dealers, go with the flow and follow the trend.
7. Open contracts, do not go all in, use a multiplier of 20-50, do not easily use 100x leverage, do not seek to get rich overnight, but seek stable profits.
8. Control your own position - managing your position is more important than anything else. If you are unsure, do not operate lightly; if you do not operate, there is no risk, and thus you will not lose money. It’s good to frequently check your assets, whether they are managed properly and reasonably.
9. The bottom is in your mind, the top is in your mind, do not be afraid; the cryptocurrency market will only make you grow. Your mindset is more important than the operation. Remember the cryptocurrency trading method; there’s no need to worry about not making money! Before trading cryptocurrencies, you should first study and understand why cryptocurrencies exist. Generally speaking, speculation to make quick money may be the reason many people enter the market, but the deeper meaning of cryptocurrencies is about decentralized financial control, design, and fund settlement. For example, cryptocurrencies are like money with wings; with the help of encryption technology, users no longer need to rely on banks but can become their own banks and use free applications on their phones. Therefore, investors will have a foundation in mind after understanding cryptocurrencies before entering the cryptocurrency market.
