Core Techniques for Trading in the Cryptocurrency Market

1. Follow the Trend, Positioning at Low Levels

In the investment waves of the cryptocurrency market, following the trend is a key strategy. Always pay attention to market direction, accurately grasp the overall trend, and decisively enter the market when prices are in a low range, firmly avoiding impulsive chasing of highs and selling at lows. Trading in accordance with the trend can greatly enhance the possibility of profit and reduce the risk of being trapped by the market.

2. Strictly Adhere to Stop Loss, Protect Principal

Stop loss is an important defense line in cryptocurrency investment. When the market trend goes against expectations, it is essential to quickly and decisively execute stop-loss operations, never harboring a sense of luck. Timely stop-loss can effectively protect the principal, avoiding heavy losses due to continuous market deterioration, and reserving strength for subsequent investment activities to reposition at the right time.

3. Focus on Mainstream and Leading Altcoins

Among the many digital currencies, one should focus on industry leaders and mainstream coins. These coins usually have high market recognition, liquidity, and stability, often backed by strong technical teams, wide application scenarios, and solid community support. In contrast, worthless altcoins not only lack these advantages but also carry numerous risks, such as price manipulation and project failures, so they should be firmly avoided to prevent falling into unnecessary investment traps.

4. Precise Analysis of Capital, Predict Market Trends

By utilizing on-chain data, trading volume, and the distribution of concentrated chip areas, conduct in-depth analysis of the dynamics of major capital accumulation, thereby accurately predicting the future trend of coin prices. Through studying these key indicators, one can gain insights into the intentions of market players and position themselves in advance, entering the market before price increases and exiting before declines, maximizing investment returns.