Core Techniques for Trading in the Cryptocurrency Market
1. Trade with the Trend, Position at Low Levels
In the investment wave of the cryptocurrency market, trading with the trend is a key strategy. Always pay attention to market direction, accurately grasp the overall trend, and decisively enter the market when prices are at low levels, firmly avoiding impulsive buying at highs and selling at lows. Following the trend in trading can greatly increase the chances of profit and reduce the risk of being trapped by the market.
2. Strictly Adhere to Stop Losses, Protect Principal
Stop loss is an important line of defense in cryptocurrency investment. When the market trend contradicts expectations, it is essential to swiftly and decisively execute stop-loss operations, never harboring any delusions. Timely stop losses can effectively protect the principal, avoiding substantial losses due to continued market deterioration, preserving capital for subsequent investment activities, so that one can re-enter the market at the right time.
3. Focus on Leaders, Stay Away from Shitcoins
Among numerous cryptocurrencies, one should focus on industry leaders and mainstream coins. These coins typically have higher market recognition, liquidity, and stability, often backed by strong technical teams, extensive application scenarios, and solid community support. In contrast, junk shitcoins not only lack these advantages but also pose various risks, such as price manipulation and project scams, so they should be firmly avoided to prevent falling into unnecessary investment traps.
4. Analyze Accurately, Anticipate Trends
By leveraging on-chain data, trading volume, and the distribution of concentrated positions, one can deeply analyze the buying dynamics of major funds, thereby accurately predicting the future price trends of cryptocurrencies. Through the study of these key indicators, one can gain insights into the intentions of market leaders, position in advance, enter the market before price increases, and exit before declines, maximizing investment returns.