Nine Major Skills in Cryptocurrency

These nine skills are essential to learn. The cryptocurrency market is a place for wealth creation, but high returns often come with risks. I have compiled some investment skills from my own experience to share with everyone.

First, Decisiveness

An excellent investor needs the trait of decisiveness. Once you see a good opportunity, follow your own thoughts and don’t be afraid of losses. Reasonable losses can help avoid risks; being indecisive is a big mistake.

Second, Entry Points

The entry points for trades in cryptocurrencies can be categorized into two modes: bullish and bearish, which can further be divided into low bullish, low bearish, high bullish, and high bearish. If the trend is one-sided, all of these are feasible. However, if the trend is fluctuating, then low bearish and high bullish should be disregarded. Avoid chasing highs and cutting losses.

Third, Position Size

The allocation of funds should be consistent with your psychological tolerance. When the position size is too large or fully invested, if the trend changes, the losses will increase, and your mindset will shift, preventing calm analysis and resulting in mistakes.

Fourth, Take Profit

In a one-sided trend, using a trailing stop-loss can increase profit potential. In a fluctuating market, taking profit requires personal judgment on when to close positions. In such conditions, even small profits can add up over time.

Fifth, Stop Loss

Before investing, you should determine your stop-loss price. After placing an order, set the stop-loss price accordingly. If the market doesn't behave as you anticipated, you can minimize losses immediately to preserve your capital.

Sixth, Frequency

Cryptocurrencies can be traded 24 hours a day, so some market movements may be missed. You need to manage your trading frequency, as excessive trading can lead to errors in technical analysis.

Seventh, Mindset

Mindset is the most crucial element in this industry. How much money you make can affect your mindset, but we should focus on whether we are making or losing money, rather than the amount. It’s better to make less than to disrupt your mindset and incur losses.

Eighth, Adding Positions

In a one-sided trend, we can add positions in the direction of the trend, but we should not add positions against the trend. Adding positions against the trend carries a high risk of increased losses, and we must avoid casually withdrawing or altering stop-loss orders on contrary positions.

Ninth, Follow the Trend

When the market shows a one-sided trend, we should not think about adjusting at any moment. All indicators may appear to be at high levels, but indicators can also diverge; do not act against the trend.$BTC $ETH