Now relying on trading cryptocurrencies to support my family, I have gained 6 invaluable experiences. Although the content is not much, every word is like gold!!!
1. Trade strong cryptocurrencies. If you don't know how to judge the strength or weakness of a cryptocurrency, use the 60-day moving average as the dividing line. When the price stands above the 60-day line and stabilizes, you can enter or increase your position. Exit when the price falls below the 60-day line. Strictly adhering to this applies to most assets!
2. Avoid those with a continuous increase of over 50%. If it rises a little, you won't be able to hold on and will be worried instead. Compared to that, having an advantage at a lower price is much better and offers a higher cost-performance ratio. First, risk can be controlled, the upward momentum is stronger, and the chances of winning are even greater.
3. Before a main upward trend forms, there will be obvious characteristics, usually a small fluctuation with a rise and fall of -10% to 20%. When the price is at a relatively low level, you can actively participate in batches; there is an 80-90% chance of a rally.
4. When a new concept or opportunity emerges in the market, there is a high probability of a 3-5 day upward trend. Understanding this pattern allows you to easily ride the coattails of the main forces!
5. When a bear market arrives, at least stay out of the market for more than six months. When the market is bad, trade less. Knowing how to buy is for beginners, knowing how to sell is for experts, and knowing when to rest and stay out of the market is for the masters!
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