Trading cryptocurrencies seems simple, but you only understand the challenges once you enter the market. There are tests everywhere. If you want to earn money in the long run, you can't rely on luck; you must adhere to a few practical rules.
Don't let emotions take control. When prices rise sharply, others are chasing; you shouldn't follow. When prices drop significantly, others are scared; instead, you should calmly look for opportunities. It's easy to say, but hard to do. I've made mistakes myself—when I chased high, I got trapped, and when there was a pullback, I cut losses. All of it is a lesson.
Never invest all your money at once. Going all in is like betting your life savings. Once your mindset is disturbed, everything becomes chaotic. The market is never short of opportunities. If you have no bullets, you can only watch when opportunities arise. Keep some backup funds to feel secure.
If the direction is unclear, do not take action. When the price is consolidating at a high level, there may be false breakouts to new highs; likewise, if it is consolidating at a low level, it may continue to break lower. Don't guess; wait for the market to show the direction before taking action.
Try to trade less during consolidation. Most people lose money because they frequently enter and exit during such times, eating up their transaction fees and disrupting their rhythm.
Buy on the day of a big drop and sell on the day of a big rise. For example, if a large bearish candle forms on the daily chart, 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 pace of decline slows down, the rebound often lacks strength. However, if there is a sudden acceleration in the drop, the rebound may be quite strong. This change can help you determine the timing.
Building a position is like stacking blocks; start from the bottom. The more it drops, the more you should buy gradually. This way, you can average out the cost and not be afraid of short-term fluctuations.
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 dip with your entire position either. The key is to see which direction it breaks out after consolidation and adjust accordingly.
In the end, trading cryptocurrencies is a battle with oneself. These methods sound simple, but executing them requires strong discipline. Don't seek to get rich quickly; as long as you can steadily earn over time, that's enough. #Crypto #BTC #The charm of emotional stability #ETH走势分析 $ETH
