Six Don'ts and Four Holds: Insights into Cryptocurrency Trading

Six Don'ts:

1. Be cautious with coins that are in a continuous downtrend and have not stabilized above the 60-day moving average.

For coins that continue to decline and have not stabilized above the 60-day moving average, it is advisable to remain on the sidelines and wait for reversal signals to appear.

2. Avoid coins that rise after positive news.

A price increase accompanied by positive news often indicates that selling pressure may be gathering, so it should be approached with caution to avoid buying at high prices.

3. Do not chase coins that surge far from the 5-day moving average.

Coins that experience a short-term surge and are far from the 5-day moving average come with heightened risks; chasing these surges should be done carefully to avoid getting trapped at high levels.

4. Be wary of abnormal spikes at high prices.

A sudden large price spike at high levels may indicate that major funds are unloading; do not blindly follow the trend.

5. Stay away from coins with excessively high turnover rates, over 30%.

An unusually high turnover rate indicates serious market divergence, and price fluctuations may intensify; participation should be cautious to avoid getting caught in a volatile range.

6. Be cautious of coins that are forcefully propped up in a sluggish market.

When the overall market is weak, certain coins being forcefully boosted may indicate a false prosperity created by major players, and investors should be wary of subsequent correction risks.

Four Holds:

1. Hold coins when the RSI is between 50-80.

An RSI indicator in the range of 50 to 80 indicates that the coin is in a strong zone; holders should continue to hold and await further appreciation.

2. Patiently hold coins that have jumped up from low levels.

A price jump from a low level is a sign of strong bullish momentum; patience is required to wait for the subsequent release of upward momentum.

3. Firmly hold coins with a clear upward trend.

For coins that have formed a clear upward trend, holders should maintain their positions as the strength of the trend often results in substantial gains.

4. Wait for action when chips are concentrated and intentions of major players are clear.

When chips are highly concentrated in a certain range, it may indicate that major players are preparing to make a move; investors can wait for major players to boost the price and then sell at a high point.

The above strategies aim to help investors make more rational decisions in the complex cryptocurrency market, but it should be noted that the market is ever-changing, and actual operations should be flexibly adjusted according to individual risk tolerance and specific market conditions.