One, those who can buy are the apprentices.
The best trading strategy in the cryptocurrency market 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 big opportunities.
b. During a bull market pullback, many altcoins are available at 10% or even 1% of their original price. It is a good opportunity to buy some promising altcoins with broad consensus at a very low price and then wait for the bull market to arrive.
c. During a bull market, various hot topics emerge. For example, this round of bull markets includes artificial intelligence, gamefi, RWA, public chains, and platform tokens. One can participate in hot speculation with a small amount of funds, and after earning more than 5 times, take profit in time and convert everything to BTC and ETH. It is essential to clearly distinguish between "making a living" and "having fun."
The essence of finance is a Ponzi scheme. When the tide goes out, you will know who has been swimming naked. Leaving before the bubble bursts on various new projects is a very wise move.
Second, those who can sell are the masters.
Trading cryptocurrencies has turned into being a shareholder. Never think that you can sell at the highest point; the highest point is only known after the fact. Two more reliable selling methods are: goal take-profit method and technical indicator method.
Goal Take-Profit Method: Be content and happy; money cannot be earned endlessly. Nothing can rise indefinitely; fluctuations are fundamental to the trading market, and everything has a cycle. Set your profit target or expected price in advance. For example, if buying a house this year requires 1 million, then set the selling price to earn 1 million. Place the order in advance, and it will be executed automatically when the target is reached. Alternatively, use the ATH price as a reference point, as breaking past the previous high is often challenging and can lead to a significant drop.
Place the sell order at about 4% below the phase high.
Technical Take-Profit Method: Set MACD to (12,26,9), select the 5-day moving average and 7-day moving average on the K-line chart. When the 5-day moving average crosses down through the 7-day moving average forming a death cross, and the MACD's DIF line crosses down through the DEA forming a death cross, it indicates that a significant drop is about to begin.
Taking ETH as an example, ETH experienced significant drops on December 4, 2021, September 7, and May 13. In all three instances, this theory proved to be quite accurate.
Three, only those who can go to cash are the true masters.
In a bull market, hold onto coins firmly; in a bear market, stay in cash. The highest state of trading is to be in cash, as waiting for a significant drop and stepping in to clean up the mess can yield the highest profits. Staying in cash is still very difficult because you not only have to endure long periods of dull waiting but also the FOMO mentality after seeing others continually profit. Based on ETH's fluctuations, there is still a good chance to experience a 20% drop 4-5 times a year.