The 'Six Key Points' to Make Money by Trading Cryptocurrencies, Have You Understood Them?

A big player in the cryptocurrency world once said that as long as retail investors can do these six points, they can easily turn 100,000 yuan into 5 million yuan. What are these six points?

Point One: You must understand when to cut losses and take profits.

We buy and sell cryptocurrencies for trading, for speculation, not to hold forever! When you are making money, you think about making more; when you are losing, you are reluctant to sell. This mindset is definitely not advisable. When the market trend goes wrong, you need to decisively sell.

Point Two: Don’t always think about buying at the low and selling at the high.

Because the market will always have lower points and higher points. Ordinary people cannot achieve this mechanism, so do not pursue the so-called highs and lows. What we really need to do is buy and sell in the bottom and top areas.

Point Three: Volume and price must perfectly match.

For those positions that rise without volume or reach new highs without volume, we must be vigilant. They could be a signal that the main force is unable to sell off, leading to a rise that is exhausted; do not chase them, even if you miss out, you must not make a mistake.

Point Four: Be quick to react.

When information appears, we must immediately find out which sectors and companies benefit from it. If you can’t keep up with the first tier, you must act promptly; the second tier will also have considerable gains.

Point Five: Learn to take breaks.

As the saying goes, it takes three months to see the bottom and three days to see the top. This means that the main rising wave of a known cryptocurrency price increase cycle only lasts for a short time. Therefore, we must learn to seize this main wave, and usually take a break at other times.

Point Six: The biggest benefit of the market is a crash, because after a crash, there are often many greater opportunities. When others are greedy, you must learn to be fearful; when others are fearful, we must be greedy.

So when the market crashes, don’t be afraid; at this time, we choose quality positions to build our positions in a timely manner.

As a seasoned cryptocurrency investor, I share my experiences and insights. Are you interested in cryptocurrencies but don’t know how to start? Follow me and check my profile to achieve freedom in this bull market.