After years of struggling in the cryptocurrency world, I've lost and gained money. Today, I won't discuss complex theories; instead, I'll share my heartfelt insights in plain language, hoping to help newcomers avoid detours. The following is purely personal opinion, and the leverage is your perspective.
1. Hotspot coins? Play with them and run; don't get too serious.
The market frequently sees new hotspots emerging, such as the metaverse, chain games, AI coins... Many people jump in headfirst and end up trapped at the peak. My principle is: Hotspot coins are like fireworks, brilliant but short-lived. If you make 20%-30%, take the profit and switch to stable assets (like BTC or U). Don't fantasize about riding the wave from start to finish; the big players understand harvesting better than you do.
For example: Last time a certain AI coin tripled in a week, I made 30% and withdrew, only for it to drop back to the starting point. Those who held on lost all their profits and even lost more.
2. Watch for the right rhythm: High-level fluctuations are alarms; breaking new lows at low levels is an opportunity.
High-level sideways before another rise: This is the dealer fishing! Attracting retail investors to take over, quickly sell in batches.
Low-level sideways with new lows: Don't panic, it might be the last drop. If the fundamentals are not bad, boldly buy in batches.
Use market sentiment against the trend: When others panic, I buy small amounts; when others are euphoric, I reduce my position.
3. The metaphysics of counter-trend coins.
In a bear market: If a coin doesn't drop at all, or even rises slightly while others do? It indicates there is capital support; the market might explode later.
In a bull market: If everything is soaring, and a certain coin just won't rise? Quickly run! Either the project side is lying flat, or the selling pressure is too heavy.
Remember: Strong coins resist decline, while weak coins follow decline and do not rise.
4. Position management: Increase when making money, cut losses decisively.
Averaging down is the easiest trap for newbies to lose money! If the coin price drops, it means you made a wrong judgment, don’t hold on stubbornly. The correct posture:
Increase position when breaking previous highs (trend confirmation);
If losses exceed 5%, cut directly, don't average down.
I lost a lot early on because I believed in 'faith-based averaging down', resulting in my principal being halved. Now I've learned: Cut losses so profits can run.
5. Trend coins: Hold tight and let the bullets fly.
Once the bottom is confirmed with volume, and it doesn't break the previous low on the retracement, it's highly likely that the trend has started. Don't get shaken out!
Patterns: Trend coins like 'advance two, retreat one', rise for two days and correct for one day, but the lows gradually rise.
Mindset: Set moving stop-loss (for example, if profits retrace by 10%, then sell), don’t get off early due to fluctuations.
6. When selecting coins, first look at the sector, then the tokens.
Top players: Focus on hot sectors (like Layer2, Depin) and select leading coins.
Second-rate players: Only focus on individual coin techniques.
Third-rate players: Blindly believe in indicator crossovers.
Bottom-tier players: Blindly gamble with their eyes closed.
Core: Funds will always flow towards popular narratives. For example, if the RWA concept is hot this wave, and you insist on buying outdated metaverse coins, the probability of missing out is high.
7. Indicators are servants, not masters.
Many people are obsessed with MACD and RSI, but volume and price are the real indicators! Indicators lag behind; the relationship between volume and price reflects the real flow of funds.
Price is rising but volume is shrinking? False breakout!
Volume breaks support line? Real selling!
My current habit: First look at the weekly volume-price structure, then scrutinize the indicators.
Lastly, let me say something heart-wrenching.
Don't believe the nonsense of 'holding for ten years': In the A-share market, you might break even after ten years, but in the crypto world, you might lose everything after ten years. Timely profit-taking and loss-cutting are the survival rules.
Invest with spare cash: If you lose it all, it won't affect your life, allowing you to operate calmly.
Limit group messages: The group is filled with actors showcasing profits; those who really make money do so quietly.
The crypto world is not a casino; it is a place for realizing knowledge. The money you can earn will never exceed your cognitive boundaries. Let’s encourage each other! Follow A Ke for more first-hand information and precise points on crypto knowledge, becoming your guide in the crypto world; learning is your greatest wealth!
