In the cryptocurrency world, capital is king. For beginners, the hard truth is to stabilize the fundamentals before discussing profits. These eight key trading principles contain the core logic for survival in the crypto market. Understand them to avoid pitfalls and move forward steadily!

1. When stuck, focus on preserving capital; chasing profits will lead to deeper losses.

Getting stuck in the crypto market is a common occurrence. At this time, the core of averaging down is to preserve capital and exit, not to fantasize about turning losses into profits. Greed in chasing profits will only lead to deeper entrapment; preserving capital is essential for future battles.

2. Calm on the surface hides turbulent currents; after a small rise, prepare for a big wave.

The crypto market may seem calm with slight slow rises, but in reality, there are undercurrents. Don’t be fooled by small profits; stay vigilant and be prepared for subsequent major fluctuations and corrections.

3. After a big rise, a correction is inevitable; K-line triangles reveal clues.

A sudden spike in prices should not lead to wild joy; a correction will follow such trends as a norm in the crypto market. If the K-line shows a triangular pattern over several days, it is a clear signal of a market reversal. Stay alert to avoid pitfalls.

4. Buy on the way down, not on the way up; sell on the way up, not on the way down. Profit by choosing opportunities against the market trend.

Beginners should avoid chasing prices up and down; it’s advisable to buy when prices are stabilizing after a decline and to sell when prices are peaking. Operating against the retail mindset is key to seizing profit opportunities during fluctuations.

5. Don’t sell on the rise, don’t buy on the drop; avoid trading in sideways markets.

Don’t rush to take profits during a rise; be cautious of further increases. Avoid blindly buying during drops to steer clear of entering halfway down. During sideways market periods without a clear trend, it’s far more important to hold back and observe changes than to act blindly.