Trading cryptocurrencies seems simple, but once you start, there are pitfalls everywhere. If you want to earn money in the long term, you can't rely on luck; you need to follow some solid rules. These methods aren't advanced, but those who can implement them are truly few.
The first and most important rule is: don't follow your emotions. When prices are surging and everyone else is rushing in, don't follow; when prices are plummeting and everyone is scared, you should calmly look for opportunities. It sounds easy to say, but it's very difficult to do. I have also fallen into traps—chasing highs only to get stuck, cutting losses on the first dip; these are lessons learned.
The second rule is: never invest all your money at once. Going all in is like betting your entire fortune; if your mindset gets disordered, your actions will become distorted. The market is never short of opportunities; if you have no cash on hand, when the opportunity arises, you can only watch. Keep some backup funds to feel secure.
In terms of specific operations, I have summarized a few experiences, all tried and tested in practice:
If the direction is unclear, don't take action. When prices are oscillating at a high level, they might occasionally push a new high; at a low level, they might continue to break down. Don't guess; wait for the market to establish a direction.
Try to trade less during consolidation. Most people lose money because they frequently enter and exit during these times, losing their fees and disrupting their rhythm.
Buy on days of significant drops, and sell on days of significant gains. For example, if the daily chart shows a large bearish candle, consider buying in batches; conversely, during a large bullish candle, sell a little. This rhythm is very practical.
Pay attention to the speed of the decline. If the drop is slowing down, the rebound generally lacks strength; but if there is a sudden acceleration in the drop, the rebound might be more vigorous. This change can help you judge the timing.
Building a position is like stacking blocks, starting from the bottom. The more it drops, the more you should buy gradually, which can average your costs and reduce the fear of temporary declines.
After a significant rise, there will be consolidation; after a significant drop, there will also be consolidation. Don't sell your entire position during consolidation, and don't buy the bottom with all your funds. The key is to see which side breaks through after consolidation and adjust accordingly.
In the end, trading cryptocurrencies is a battle against oneself. These methods sound simple, but to truly execute them requires strong discipline. I don't seek to get rich overnight; as long as I can stabilize and earn slowly, that's enough.
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