Essence of Cryptocurrency Trading
1. No Greed, No Impulsiveness: What the crypto market needs is rationality and patience. Greed will only lead to impulsive decisions and missing out on good opportunities.
2. Understand Market Structure: Don’t just rely on ‘whales supporting the market’. The market is influenced by multiple factors, including the global economy, policy changes, technological innovations, etc. Never place your hopes on a single viewpoint.
3. Even Whales Have Difficulties: Understand the operational difficulties and strategies of the whales, but don’t get led by them. The market is complex, and the intentions of the whales are not always obvious or straightforward.
4. Pay Attention to Volume at the Bottom: Increased volume at the bottom might signal capital entering the market, but don’t blindly trust it; also consider other factors to avoid false breakouts.
5. Patiently Handle Consolidation: Consolidation is a common operation aimed at shaking out weak investors. Stay calm and patiently wait for the market trend to clarify before taking action.
6. Mid-term Strategies and Position Management: Focus on holding onto coins you believe in, but maintain some liquidity to optimize costs and returns through rolling operations.
7. Short-term Trading Skills: Short-term trading requires a keen market sense and quick decision-making. K-line charts, market sentiment, heat, and the speed of upward movement are all important.
8. Safety of Buying at the Bottom: Coins in the bottoming phase are relatively safe, but confirming the bottom requires time and more signal support; do not rush for results.
9. Be Cautious When Chasing Gains: Chasing gains can bring quick profits but also carries high risks. Accurately assess the sustainability of the upward trend to avoid buying at high levels.
10. Application of Technical Indicators: Divergence is one of the keys to technical analysis and can help predict market reversal points. However, it should be combined with other analytical methods and actual situations to avoid making decisions based solely on one indicator.