The following are some key points and strategy summaries about cryptocurrency trading:
1. Bitcoin’s leadership
Bitcoin is often a bellwether for the cryptocurrency market. The rise and fall of most altcoins (i.e. cryptocurrencies other than Bitcoin and Ethereum) are influenced by Bitcoin. However, strong-quality coins such as Ethereum sometimes break away from Bitcoin's trend and develop independent trends.
2. Bitcoin and USDT’s opposite movement
Bitcoin and USDT (Tether, a stablecoin) usually move inversely. If you find that the price of USDT is rising, you should be alert to the possibility that Bitcoin may fall. On the contrary, when Bitcoin rises, it is a good time to buy USDT.
3. The pin-in phenomenon between 0:00 and 1:00 every day
Between 0:00 and 1:00 every day, the price of coins tends to fluctuate violently, commonly known as the "pin-spiking phenomenon". Domestic coin friends can place low buy prices and high sell prices for their favorite coins before this time period, and they may trade while they sleep, realizing "lying down and making money".
4. Timing of judgment between 6 and 8 in the morning
6:00 to 8:00 every morning is an important time to judge the market trend of the day. If the market continues to fall from 0:00 to 6:00 and is still falling from 6:00 to 8:00, it is a good time to buy or cover a position; if the market continues to rise from 0:00 to 6:00 and is still rising from 6:00 to 8:00, it is a good time to sell.
5. Market volatility at 5 p.m.
5pm is a time point that requires special attention. Due to the time difference, the US market begins to move, which may cause a large fluctuation in the price of the currency. Some important ups and downs often occur at this time.
6. The “Black Friday” phenomenon
Although there is a saying in the cryptocurrency circle that "Black Friday" means that there may be a big drop on Friday, this phenomenon is not always accurate. It is necessary to consider the news and market trends comprehensively.
7. Currencies with guaranteed trading volume
For currencies with a certain amount of trading volume, if there is a drop, don't worry too much. Hold it patiently, and it will generally pay back in 3-4 days or a month. If you have extra money, you can cover your position in batches to lower the average cost and speed up the payback.
8. Advantages of long-term holding
In the spot market, long-term holding of the same currency often yields greater returns than frequent trading. This requires investors to be patient. For example, someone bought Dogecoin at $0.029 and has held it for more than 20 times.
9. Factors that affect the turbulence in the cryptocurrency market
1. The attitudes of various countries towards cryptocurrencies. Negative policies will lead to a market decline.
2. US financial policies, such as news of imposing taxes on the rich, will affect market sentiment.
