First, those who can buy are the disciples.
The best trading strategy in the crypto world is:
a. Regardless of bull or bear markets, 5 layers of positions should be in BTC and ETH, while the remaining 5 layers should be used to seize larger opportunities.
b. When a bull market retraces, many altcoins are priced at a discount of 90% or even 90% off. At this point, it’s a good idea to buy some promising altcoins with widespread consensus and then wait for the bull market to arrive.
c. During a bull market, various hot topics emerge, such as artificial intelligence, GameFi, RWA, public chains, and platform tokens; invest a small amount of capital to participate in the hot speculation. After earning more than 5 times your investment, take profits promptly and convert everything into BTC and ETH. Clearly distinguish between 'making a living' and 'playing around.'
The essence of finance is a Ponzi scheme; when the tide goes out, you will know who is swimming naked. Leaving before the bubbles of various new projects burst is a very smart move.
Second, those who can sell are the masters.
Trading coins to become a shareholder; never think you can sell at the peak; the peak can only be known in hindsight. Two reliable selling methods: target profit-taking method and technical indicator method.
Target profit-taking method: Be content and happy; money cannot be made endlessly. Nothing can rise indefinitely; the essence of the trading market is that there are both rises and falls, everything has a cycle. Set your profit target or expected price, and place orders in advance. For example, if you need 1 million to buy a house this year, set your price to the amount that can earn you 1 million, and place the order in advance for automatic execution when the target is reached. Alternatively, use the ATH price as a reference point, as breaking through previous highs is often difficult and usually accompanied by a significant drop, so sell.
Set the selling price around 4% below the stage high.
Technical profit-taking method: Set MACD to (12,26,9), select the 5-day moving average and 7-day moving average for the K-line chart. When the 5-day moving average crosses below the 7-day moving average and forms a death cross, and the MACD's DIF line crosses below the DEA to form a death cross, it indicates that a significant drop is about to begin.
Taking ETH as an example, the significant drops on December 4, 2021, September 7, and May 13 can clearly show that this theory is quite accurate.
Third, only those who can hold empty positions are the true masters.
In a bull market, hold onto coins firmly; in a bear market, hold onto empty positions firmly. The highest realm of trading is holding empty positions because waiting for a significant drop allows you to enter the market and clean up the mess for maximum profit. Holding empty positions is also very difficult because you must endure long periods of monotonous waiting and the fear of missing out (FOMO) when others continue to make money. Based on ETH's volatility, it’s still quite easy to find 4-5 opportunities for a 20% drop in a year.