Sharing Experience in Cryptocurrency Trading
A sharp decline is a great test for high-quality coins.
When the market plummets, if the coins you hold only experience a minor drop, this clearly indicates that the market makers are supporting the price, preventing it from falling. For such coins, you can hold them with confidence, as they will surely yield returns in the future.
If beginners are unsure how to buy and sell, here is a simple and direct method.
For short-term trading, just hold the coin as long as its price is above the 5-day moving average, and sell once it drops below the 5-day line; for medium-term trading, use the 20-day moving average as a standard, and sell if it falls below the 20-day line. There are various trading methods, and the best one is the one that suits you.
The difficulty in trading is not the lack of methods, but in execution. As long as you mindlessly stick to one method, you can surpass 90% of the people because, remember, simplicity is the ultimate sophistication.
Once a main upward wave forms, and there is no significant increase in volume, be decisive in buying.
Continue to hold during volume increases, and also hold when there is a volume decrease as long as the trend is not broken; if there is a volume decline and the trend is broken, quickly reduce your position.
After a short-term buy, if the price does not fluctuate within three days, take the opportunity to sell.
If after buying the price not only fails to rise but instead falls, and your loss reaches 5%, you must stop loss unconditionally.
If a coin has dropped 50% from its peak and has fallen for 8 consecutive days, it indicates that it has entered an oversold channel, and an oversold rebound is often imminent; at this point, consider following up.
When trading cryptocurrencies, focus on leading coins and only operate with them; do not touch those miscellaneous coins. This is because during an uptrend, leading coins have the largest gains, and during a downturn, they are the most resilient.
Do not hesitate to enter the market out of fear. Trading cryptocurrencies is often counterintuitive; do not buy just because a coin has dropped significantly, nor should you avoid buying just because it has risen a lot.
Often, the coins that seem most unappealing to buy will rise the most, while those that seem attractive will fall; this is the principle of the strong getting stronger. When trading leading coins for the short term, the most important thing is to buy at a high price and then sell at an even higher price!
The bull market has just begun. If your funds are limited and you do not want to choose Bitcoin, but hope to gain several times the returns through altcoins, yet do not know which coin to buy, then follow me; I will guide everyone in positioning for the entire bull market.