Buying the bottom and escaping from the top are undoubtedly core strategies that investors in the currency circle must master. After communicating with a senior cryptocurrency industry leader, I compiled his valuable experience and simplified it into the following four investment rules:
1. When the currency price encounters a short-term correction in an upward trend, and the correction is not large, and the trading volume decreases significantly, this is usually a positive signal, indicating that the currency price is expected to resume its upward trend. However, if the currency price continues to hit new highs but the trading volume gradually shrinks, this may indicate the arrival of a top, and investors need to be more vigilant.
2. When the currency price is at a low level and fluctuates sideways, investors should remain calm and not rush into the market. Only when the currency price can quickly regain its lost ground after reaching a new low, forming a so-called "golden pit", such an opportunity is worth considering.
Furthermore, for those currencies that have been trading sideways at the bottom for a long time, once they break through the sideways range and undergo a short correction, if they can rise strongly again and break through the previous high, this often indicates that a new rising cycle has begun, and investors You can seize this opportunity.
3. When a currency fluctuates sideways after hitting new highs continuously, and attempts to break through many times without success, accompanied by multiple declines, this is likely to be a bull trap in the market. In this case, investors should remain rational and avoid being confused by the appearance of the market.
As for specific investment strategies, product selection and how to maximize benefits, these need to be formulated flexibly based on the actual market conditions and personal risk preferences.
In my article, I will give you an in-depth analysis of these skills and experiences, hoping to help you make steady profits in your currency investment.
