Six key points to profit from trading cryptocurrencies that you should know! Valuable insights!!!

A prominent figure in the crypto world once said that if retail investors can achieve these six points, then with just one hundred thousand yuan, they can easily make five million. What are these six points?

First point: You must understand stop-loss and take-profit.

We trade cryptocurrencies for trading purposes, not to hold them forever! When you are making money, you think about making more; when you are losing, you are unwilling to sell. This mindset is definitely unwise. When the trend of your position goes wrong, you need to sell decisively.

Second point: Don’t always think about buying at the low and selling at the high.

The market will only have lower lows and higher highs. Ordinary people cannot achieve this mechanism, so don’t chase after so-called highs and lows. What we really need to do is to buy and sell in the bottom and top areas.

Third point: Volume and price must match perfectly.

For positions that rise without volume or reach new highs without volume, we must be cautious. This could be a signal that the main force is unable to unload and the rise is exhausted. Never chase; it’s better to miss out than to make a wrong move.

Fourth point: Be quick to react.

When information emerges, we need to quickly find out which sectors and companies are benefiting. If you can’t keep up with the first tier, then we should act promptly, as the second tier will also bring significant gains.

Fifth point: Learn to take breaks.

As the saying goes, it takes three months to see the bottom and three days to see the top. This means that the main rising phase of a known cryptocurrency price cycle lasts only a short time. Therefore, we need to seize this main wave and rest during other times.

Sixth point: The biggest market advantage is a crash because a crash often brings many greater opportunities. When others are greedy, you must learn to be fearful; when others are fearful, you should be greedy. So when the market crashes, don’t be afraid; at this time, we should choose quality positions and build our positions promptly.

These six points may seem simple, but very few can truly achieve them. Why? If you cannot overcome the weaknesses of human nature, you will never earn your first five million in life.