4 Tips for Trading Cryptocurrencies That Beginners Must Read
I have tried many methods in the cryptocurrency world and have fallen into quite a few traps.
However, achieving relatively stable profits, which I have continued to use until now, is actually not complicated; the core is just a set of processes, but it requires a high level of execution.
This set of methods has allowed me to achieve an eight-figure income in a year, relying not on luck, but on discipline.
To summarize, there are four steps: choose coins, buy points, position, and sell points.
Step 1: First, choose the right coins
Add the coins that have made it to the top of the gainers list in the last 11 days to your watchlist.
But there is a hard condition:
If there is a continuous drop for more than 3 days during this period, remove it immediately.
This usually indicates that the funds have already exited, and there is no need to catch a falling knife.
Step 2: Look at the overall trend, do not go against the trend
Pull up the monthly chart and only look at one indicator—MACD.
It must be a golden cross going upwards to consider taking action.
Coins that have not broken out of the overall trend, no matter how strong they are in the short term, are prone to losing money.
Step 3: Find the buying point, only recognize one line
Switch to the daily chart and only look at the 60-day moving average.
When the price retraces to the vicinity of the 60-day line,
and a strong bullish candle or a signal of stopping the decline appears,
only then consider entering the market.
Do not chase high prices; just wait for the pullback to give opportunities.
Step 4: Selling and risk control
After entering, the 60-day line is the only standard:
If it is above the line, hold on; if it breaks below, exit.
Specifically on how to sell:
If the market rises over 30%, sell one-third first
If it rises over 50%, sell another one-third
If it directly falls below the 60-day line the day after buying, regardless of the reason, exit completely.
This method of determining direction on the monthly chart and finding position on the daily chart,
has a low probability of stepping on landmines, but the prerequisite is strict execution of stop-loss.
In the cryptocurrency world, the most important thing is not how fast you earn,
but that your capital always remains on the table.
Even if you sell too early, as long as the conditions are met again, you can always get back in.
Ultimately, the difficulty is not in the method,
but in whether you can follow the rules.
The market will change, but stubbornness will only lead to elimination,
Understanding when to enter and exit is key to lasting longer.
