Must-see Essentials! Five Golden Rules of Cryptocurrency Trading

1. Rapid Rise and Slow Fall, Major Players Accumulate in Secret

• When the currency value rapidly climbs and then slowly retreats, it may suggest that major funds are quietly accumulating tokens to build momentum for the next round of increases.

2. Sudden Drop and Slow Rise, Major Players Gradually Withdraw

• If there is a sharp decline followed by a slow recovery, it usually indicates that major players are selling in batches, and the market may be entering a correction phase.

3. Analysis of Volume Rules at the Top

• High Volume at Peaks, Don't Panic Sell: When the trading volume in the peak area significantly increases, it may indicate that there is still some potential for further growth.

• Volume Decrease, Exit Quickly: If the trading volume at the peak starts to shrink, indicating a weakening upward momentum, one should exit quickly to avoid risks.

4. Insights into Volume Rules at the Bottom

• Be Cautious of Single Peak Volume Increase: A significant increase in single transaction volume at the bottom may just be a temporary rebound illusion.

• Continuous Volume Increase Indicates Potential: If the bottom trading volume continues to expand, it may suggest that the market is about to welcome a reversal opportunity.

5. Cryptocurrency Trading is a Game of Human Emotions

• Behind the price fluctuations lies the emotions and consensus of market participants. And trading volume is an important measure of this emotional change.

Recently, I am preparing to invest in a potential cryptocurrency, aiming for a target of doubling returns, and even hoping for an astonishing increase of ten times or more.