The road to cryptocurrency trading is not an easy one, but once you understand the secrets, making profits will be as natural and smooth as breathing. Here are some rules for making profits when the market is rising, be sure to keep them in mind!
1. The upward momentum is difficult to contain: Once the upward momentum starts, it will not stop easily. Therefore, in the face of a large correction that may occur in the early stage, there is no need to panic and you should intervene bravely. However, be sure to avoid blindly seeking a lower buying point, otherwise you may miss the opportunity and go empty-handed.
2. The bull market fluctuates frequently, and positions need to be adjusted flexibly: In a bull market environment, the market tends to fluctuate rapidly. If your position is not fully occupied, you can patiently wait for an appropriate callback time, and then decisively increase your position. But please remember that it is not advisable to trade frequently, so as not to interfere with your mentality and final profit.
3. Diversify your investments to reduce risk: When investing in cryptocurrencies, the wisest approach is to diversify your investments into multiple key areas. This will prevent the overall returns from being dragged down by a lack of activity in a certain area in the short term. Of course, you also need to allocate funds reasonably based on your own risk tolerance and the actual market conditions.
4. Hold on and wait for rotation: Once you decide to invest in a certain currency, you must hold on and not be easily shaken by short-term market fluctuations. Because in a bull market, each currency has the opportunity to rise in turn, as long as you can hold on to the end, there will always be a chance to get considerable returns.
5. Opportunities hidden in market disagreements: When there are disagreements in the market, it often means the arrival of opportunities. Those currencies that are criticized by everyone may be potential investment opportunities. When everyone is optimistic about them, it may be a signal that risks are about to come.
6. Avoid short-term trading: When trading cryptocurrencies, try to avoid frequent short-term buy-low-sell-high operations. Once you quit, you may find it difficult to return to the market. On the contrary, long-term holding can often bring more stable returns.
7. Stay calm and patient: In a bull market, callbacks are inevitable. But as long as you don’t hold low-quality coins, even the worst coins can achieve several times or even dozens of times the returns in a bull market. Therefore, you need to stay calm and wait patiently for the market to rotate.