There is a very foolish method for trading cryptocurrencies, but this method can almost eat up all the profits, so learn slowly. First of all, when trading cryptocurrencies, we should never do three things.

The first is to never buy when the price is rising; be greedy when others are fearful, and fearful when others are greedy. Develop the habit of buying when prices are falling.

The second is to never place large orders.

The third is to never go all-in; being all-in makes you very passive, and the market is never short of opportunities. The opportunity cost of being all-in can be very high.

Now, let’s talk about six rules for short-term trading.

The first is that after the price consolidates at a high level, there will usually be a new high. Similarly, after it consolidates at a low level, there will usually be a new low, so wait until the direction of the market change is clear before making a move.

The second is to avoid trading during sideways movement; most people lose money in cryptocurrency trading because they fail to adhere to this simplest point.

The third is when selecting candlestick patterns, buy during bearish candlesticks and sell during bullish ones.

The fourth is that when the decline slows down, the rebound will also slow down; a decline will accelerate the rebound.

The fifth is to build positions using the pyramid buying method; this is the only unchanging principle of value investing.

The sixth is that when a particular cryptocurrency continues to rise or fall, it will inevitably enter a sideways state. At this time, there is no need to sell everything at high levels, nor is it necessary to buy everything at low levels. After consolidation, a market change is inevitable. If the price drops from a high level, then clear your positions promptly; in any case, timely action is essential.