Nine Key Techniques in the Crypto World: Learning to Use Them Means Earning!

However, high returns often come with risks. I've compiled some investment techniques in the crypto space, which are also my personal experiences, to share with everyone.

First, Decisiveness

An excellent investor needs to have the quality of decisiveness. Once you identify an opportunity, follow your own thoughts without fearing losses. Reasonable losses can help mitigate risks; avoid being indecisive.

Second, Entry Points

There are two modes for entering positions in digital currencies: bullish and bearish. These can be divided into low bullish, low bearish, high bullish, and high bearish. If the trend is one-sided, all these are feasible. However, in a fluctuating trend, there is no need for low bearish and high bullish; avoid chasing after rising prices or selling into falling prices.

Third, Position Size

Allocate funds in accordance with your psychological tolerance. If your position is too large or fully invested, once the trend changes, increased losses can alter your mindset, preventing calm operation and analysis, leading to mistakes.

Fourth, Take Profit

In a one-sided trend, trailing stop methods can increase profit margins. In a fluctuating market, take profit requires personal assessment of exit points. During such conditions, even small profits can accumulate over time.

Fifth, Stop Loss

Before investing, set your stop-loss price, and fill it in after placing your order. If the market does not behave as you anticipated, you can quickly minimize losses and preserve your capital.

Sixth, Frequency

Digital currencies can be traded 24 hours a day, so some market movements may be missed. You need to master your trading frequency; excessive trading can lead to erroneous technical analyses.

Seventh, Mindset

The right mindset is the most crucial aspect in this industry. The amount of money made can influence your mentality, but we must focus on whether we are gaining or losing, not on how much we earn. It's better to earn less than to let a disturbed mindset lead to losses.

Eighth, Adding Positions

In a one-sided trend, we can add positions in the direction of the trend, but we should not add positions against the trend. Adding positions against the trend significantly increases the risk of larger losses. We must also avoid carelessly withdrawing or changing stop-loss orders against the trend.

Ninth, Following the Trend

When the market presents a one-sided trend, we should not think about making adjustments at any time. All indicators may show high levels, but they can also diverge; we should not go against the trend.