In the cryptocurrency market, we often see a phenomenon: currencies that rise quickly may continue to rise, while currencies that fall quickly may continue to fall. Based on this phenomenon, it is more prudent to adopt corresponding strategies in different market environments:

When the market rises overall

Focus on the currencies with the largest increase: the market performance seems to tell us that these currencies have strong upward momentum and high market recognition, and the probability of continuing to rise in the future is higher. Choosing these currencies may get greater returns.

When the market falls overall

Look for currencies with the smallest decline: these currencies show strong resistance to decline, perhaps because they have solid fundamental support or the market has strong confidence in them. In market downturns, these currencies are more likely to remain stable or rebound quickly.

Risk Management

However, trend-following strategies are not without risks. Both drastic changes in the market and shifts in fundamentals can lead to a reversal of the trend, exposing investors to losses. Therefore, when adopting a trend-following strategy, it is necessary to combine market analysis, fundamental research, and strict risk management measures to ensure the comprehensiveness and prudence of investment decisions.