Five Iron Rules of Trading Cryptocurrencies, Simple and Easy to Understand, Take a Look!
First Rule: If the price rises quickly and falls slowly, the market maker may be accumulating. If you see a certain coin skyrocketing, but when it drops, it’s as slow as a snail, you need to be cautious; this is likely the market maker quietly collecting chips, preparing for another wave.
Second Rule: If the price falls quickly and rises slowly, the market maker may be distributing. Conversely, if the coin price suddenly plummets like diving into water, and then rises back slowly like a snail, this could mean the market maker is quietly selling off. We need to be careful at this point; the market may be heading downhill.
Third Rule: High trading volume at the top, don’t rush to sell; low volume at the top, withdraw quickly. If the coin price reaches its peak and the trading volume is still very high, don’t rush; there may be more room to grow. But if the trading volume decreases, then withdraw quickly, as it indicates that the upward momentum is fading.
Fourth Rule: High trading volume at the bottom, don’t rush to buy; sustained volume, you can enter. If the coin price drops to its lowest point and the trading volume suddenly increases, don’t rush; this might be a small rebound during the downward trend, and you should observe further. But if the trading volume remains high, it indicates that someone is continuously buying, and at this point, you can consider entering.
Fifth Rule: Trading cryptocurrencies is essentially trading sentiment; consensus determines price fluctuations. In simple terms, trading cryptocurrencies is about trading everyone’s feelings. When market sentiment rises, prices go up; when sentiment drops, prices fall. And trading volume is the signal of consensus among everyone, reflecting investors' buying and selling trends.
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