Core Techniques for Trading in the Cryptocurrency Market

1. Follow the Trend, Establish Positions at Low Levels

In the wave of investment in the cryptocurrency market, following the trend is a key strategy. Always pay attention to market direction, accurately grasp the overall situation, and decisively enter the market when prices are in a low range, firmly avoiding impulsively chasing highs and cutting losses. Trading according to the trend can greatly enhance the possibility of profit and reduce the risk of being trapped by the market.

2. Strictly Adhere to Stop Losses, Protect Capital

Stop loss is an important defense line in cryptocurrency investment. When market trends go against expectations, it is crucial to quickly and decisively execute stop-loss operations without harboring any illusions. Timely stop-loss can effectively protect capital, preventing significant financial damage due to the continued deterioration of market conditions, and leaving room for future investment activities to re-establish positions at the right time.

3. Focus on Mainstream and Leading Altcoins

Among the many cryptocurrencies, one should focus on industry leaders and mainstream coins. These coins typically have high market recognition, liquidity, and stability, often backed by strong technical teams, extensive application scenarios, and solid community support. In contrast, worthless altcoins lack these advantages and carry numerous risks, such as price manipulation and project scams, so they should be firmly avoided to prevent falling into unnecessary investment traps.

4. Precise Analysis of Holdings, Predict Trends

By utilizing on-chain data, trading volume, and the distribution of concentrated chips, conduct an in-depth analysis of the dynamics of major capital's accumulation to accurately predict the future trends of coin prices. Through studying these key indicators, one can gain insights into the operational intentions of market leaders, allowing for early positioning—entering the market before price increases and exiting before declines—to maximize investment returns.