Today (3), Shenyu, co-founder of the world’s largest mining pool – F2Pool, quoted the exit plan made by Bitcoin miner Peicaili for Bitcoin and shared his views on how to operate and the transaction difficulty coefficient in the current bull market.
He believes that different types of cryptocurrency trading operations have different levels of difficulty, and the skills, psychological qualities and understanding of the market required behind these operations are also different.
Difficulty 1 star, arbitrage
Shenyu said that the difficulty of arbitrage operations is relatively low, usually only requiring basic mathematical calculation skills (addition and subtraction). However, despite the simplicity of the operation, the strength of execution will determine the final key.
Difficulty 2 stars, bargain hunting
Bottom-fishing is a little more difficult, especially in terms of position management and emotional control. Shenyu pointed out that this operation not only requires investors to have sufficient insight into the market, but also requires sufficient capital reserves to seize the most appropriate buying opportunity, which is particularly important for the control of opportunities!
Difficulty Samsung, heavy position after selling
Selling and then holding a heavy position is a very challenging operation because it requires investors to have strong psychological qualities. This operation is usually carried out after the market fluctuates greatly after selling. The choice of holding a heavy position must be based on a comprehensive assessment of the risks and the ability to quickly adjust the mentality without being affected by the emotions of selling.
Difficulty 4 stars, escape the top
The difficulty of escaping the top is relatively high, and it requires comprehensive analysis of multiple factors. Shenyu emphasized that in addition to fundamental data, investors also need to pay attention to changes in the macro economy and fluctuations in group sentiment. This operation requires investors to have a keen insight into market trends and be able to respond quickly in a short period of time.
Difficulty 5 stars, leverage trading
Leveraged trading is the most difficult operation. Shenyu pointed out that it significantly amplifies market volatility and also reduces the survival rate. For investors, leveraged trading not only requires proficiency in previous operations such as bargain hunting, heavy positioning, and top escape, but also requires sufficient ability to deal with high risks.
Learn to "take over" instead of fleeing
Shenyu said that after years of experience, he no longer has high expectations for "escaping the top", but has learned how to "take over" in the market and absorb more assets when prices fall. Instead of wasting energy trying to catch the highest point, it is better to learn how to buy at the low point, so that buying low and selling high can seize the opportunity of the bull market.