First, let me share some basic techniques. When the coins are good, there’s no need to mention it; they will definitely make profits. But what do we do when the market is bad? This is the real test for everyone, as doing anything requires experience and endurance; only those who can withstand it can make money.
Eight major cryptocurrency trading mantras to share with everyone.
Cryptocurrency trading mantra one: Averaging down to seek to break even; seeking profit is greed.
Cryptocurrency trading mantra two: On a calm surface, a wave is high; beware of the great waves that follow.
Cryptocurrency trading mantra three: After a big rise, there must be a correction, and K-lines will form a triangle over several days.
Cryptocurrency trading mantra four: Buy on the dip, not on the rise; sell on the rise, not on the dip; act against the market trend is what makes a hero.
Cryptocurrency trading mantra five: Do not sell at peaks, do not buy at drops, do not trade in sideways markets.
Cryptocurrency trading mantra six: Look for support levels in an uptrend and resistance levels in a downtrend.
Cryptocurrency trading mantra seven: Full position trading is a major taboo; stubbornness is unwise; one must know when to stop amidst constant changes; being agile in and out is key.
Cryptocurrency trading mantra eight: Cryptocurrency trading relies on mindset; greed and fear are major harms. Be cautious in chasing price movements, and remain calm and at ease.
In a bear market, some investors often panic and sell their cryptocurrencies, maintaining a cash position. At this time, the bears dominate the market, and the atmosphere for bullish sentiment is severely lacking. So how should one operate in a bear market? Let’s take a look at how to operate in a bear market.
No matter when, preserving capital and controlling risks is always more important than finding the next bull coin!
The primary task of investing and trading is to preserve capital, maintaining one’s vitality. The essence of trading lies in controlling drawdowns. It is fatal to force trades when the market is not favorable; not understanding rest and position control will inevitably lead to significant losses. One must always be cautious and tread carefully.
For value cryptocurrencies, the more they drop, the more one should buy.
A market slump is the best time for us to build and average down on our positions. The more we buy when the price drops, the lower the average cost of the coins that are stuck. Then, with patience and faith, we can navigate through the bear and bull markets. What is a value cryptocurrency? In short, it has a strong market potential in blockchain applications and has already been implemented or has the basic conditions to be implemented. What if one doesn’t have much spare money to average down? Then just adopt a Zen approach to cryptocurrency trading; hold onto whatever value cryptocurrencies you have, and don’t cut losses in a bear market. It is said that guarding coins is harder than guarding one’s chastity; you might not care about guarding your chastity, but when it comes to guarding coins (except for scam coins), it’s advisable to persist no matter how hard it gets.
Cryptocurrencies with independent market movements.
Everyone should keenly observe which cryptocurrencies are flying against the trend during a market downturn and which have a smaller decline. Then, assess whether their strength is due to a major player manipulating the market to support prices or if their applications are recent hot topics with bright prospects and ready to be implemented. If it’s just a major player manipulating the market, it will be fleeting. If their application areas are recent hot topics or have bright prospects and are ready to be implemented, then they are the independent trading cryptocurrencies we are looking for.
Speculating on cryptocurrencies cannot be driven by greed. Accumulating wealth through cryptocurrency investment is a long process. If, during this process, one is both greedy and seeks to make quick profits, then achieving wealth growth is fundamentally impossible. Both of these mentalities lead people to endlessly chase profits, and when faced with high returns, they tend to lose rationality. However, high returns mean high risks; blind investment can only lead to failure. Only by pursuing stable wealth growth can one balance risks and profits.