The six key points to making profits from trading cryptocurrencies—do you master them? A valuable sharing!!!

A bigwig in the capital world once said that if retail investors can achieve these six points, then with one hundred thousand yuan, it is very easy to earn five million. What are the six points?

First point, you must understand how to cut losses and take profits. We buy and sell cryptocurrencies for trading and speculation, not to hold indefinitely. When you are making money, you think about making more, but when you are losing, you are unwilling to sell. This mindset is definitely not advisable. When the trend of your position goes bad, you need to sell decisively.

Second point, do not always think about buying at low points and selling at high points, because the market will only have lower points and higher points. Ordinary people cannot achieve this mechanism, so do not pursue so-called highs and lows. What we really need to do is buy and sell in the bottom and top areas.

Third point, volume and price must be perfectly matched. For positions that rise without volume or reach new highs without volume, we must be vigilant. It could be a signal that the main force is unable to sell and the rise is exhausted, so do not chase; it is better to miss out than to make a mistake.

Fourth point, reactions must be quick. When information appears, we need to immediately find out which favorable sectors and companies are involved. If you cannot keep up with the first tier, then we should take timely action; the second tier will also yield significant gains.

Fifth point, learn to take breaks. As the saying goes, the bottom is seen in three months, and the top in three days. This means that the main upward wave of the known cryptocurrency price increase cycle only lasts a little while. Therefore, we must learn to seize this main wave, while other times are usually for resting.

Sixth point, the biggest benefit in the market is a sharp decline because after a sharp drop, there are often many greater opportunities. When others are greedy, you must learn to be fearful; when others are fearful, we should be greedy. So when the market experiences a sharp decline, do not be afraid; at this time, we choose quality positions and build our positions in a timely manner.

These six points sound simple, but very few can truly achieve them. Why? If you cannot overcome the weaknesses of human nature, you will never earn your first five million in your life.