In fact, once you get the hang of cryptocurrency trading, life will be like enlightenment!

Ten years ago, when I first entered the cryptocurrency circle, like most retail investors, my losses and profits seemed to depend entirely on luck, and I couldn’t find any patterns.

But after being in the cryptocurrency circle for a few years, through constant learning and absorption, as well as constant sharing and guidance from my masters and seniors, I finally slowly opened up and formed my own investment system!



Methods for judging the accumulation stage of futures through technical analysis:

1. Observe the price pattern: the price rises and falls within a narrow range for many consecutive days, forming a picture similar to the foundation piles of a building, that is, a dense area. This may mean that the market is gathering momentum, and once it breaks upward or downward, it may trigger a larger market.

2. Analyze trend lines: Pay attention to the angle and stability of trend lines. Trend lines with a 45° angle may be more meaningful. Even if a steep trend line is broken, it does not necessarily mean a trend reversal, but may just be a normal adjustment; while a flat trend line indicates that the trend is weak.

3. Use of moving average: You can use simple moving averages, such as ma60, to determine the long and short directions. If the price is above the moving average, it may be in the accumulation stage of an upward trend; conversely, if it is below the moving average, it may be in the accumulation stage of a downward trend.

4. Trading volume and open interest: Trading volume represents the activeness of long and short positions in the market, while open interest reflects the view on the future market. In the accumulation phase, changes in trading volume and open interest can also provide some clues. When open interest gradually increases during the accumulation process, it may mean that market participants are gradually converging on the future direction.

5. Pay attention to technical indicators: such as MACD, KDJ, RSI and other indicators. Although these indicators have certain limitations, they can reflect the market's momentum, overbought and oversold conditions from different angles. However, the signal of a single indicator may not be accurate, and it is necessary to combine multiple indicators for comprehensive judgment.

6. Time factor: There is a saying that "time trades for space". After a long period of sideways consolidation or a breakthrough in a triangular consolidation, the market trend may be more fierce, and its amplitude and speed may be proportional to the length of time of consolidation.

7. Signs of reversal pattern: Although a complete reversal pattern has not yet been formed, we should pay attention to some early signs. For example, in an upward trend, the length of the Yang line gradually shortens, or a Yin line with an upper shadow appears after opening high and closing low; in a downward trend, the Yin line gradually shortens, or opens low and closes high.



Is it more profitable to trade cryptocurrencies in the short term or in the long term?

In the cryptocurrency world, those who over-speculate often fail, while those who only seek ordinary returns may become rich.

There are generally two ways to speculate in cryptocurrencies:

Short-term operation: Use more funds to operate active coins, use stop-loss orders to protect principal and predict the price fluctuation trend. If the prediction is right, wait and see and wait for the opportunity to sell. If it is wrong, sell at the stop-loss point.

However, this method will cause them to choose to sell at a loss when they encounter a sudden waterfall or a decline and miss the stop loss point. In addition, they may repeat the operation after the market rebounds and suffer losses. At the same time, it is also necessary to judge whether to stop loss based on different periodic trends (such as weekly and monthly lines). If the judgment is not scientific, it may lead to wrong operations.


So what is value investing: we need to consider the general direction of the currency, the relationship between the price and value, and have confidence in the value of the currency in the coming months. Correct value investing requires building positions in batches and not being confused by short-term gains.

Short-term and long-term investors have different perspectives and ways of thinking. Short-term investors are easily affected by the market and have unstable emotions; long-term investors only need to enter the market at the bottom of the bull market to arrange potential coins and then patiently wait for the bull market to peak and cash out.

Retail investors in the market are influenced by the main players and develop a "leek mentality". When you are greedy and want to make more money in the short term, you should consider your own ability. The financial market follows the 80/20 rule. Investors who want to change their destiny need to think about how to become one of the 20%.

In a bull market, if you go long more than short, and in a bear market, if you go short more than long, you generally won't suffer losses. It's normal to be trapped in cryptocurrency trading, and being trapped doesn't mean being harvested. In the cryptocurrency circle, people are often reluctant to retreat, but it is necessary to retreat at the right time, and accept the cycle of gains and losses.

Whether it is short-term or long-term investment, defense (building positions in batches) is more important than offense.

Follow me and visit my homepage, you will definitely gain something. Helping others is like helping yourself. I hope that no matter how the market changes, we can always go on together, and we can still laugh at the cryptocurrency world ten years later.

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