A simple cryptocurrency trading method that I have tested myself. From a capital of 40,000, I have encountered more than 36 million. I only use this method to master the buying and selling points. The following is a summary
1. The one who knows how to buy is the apprentice
The best way to operate the currency circle is:
a. Regardless of the bull or bear market, the 5th level position must be BTC, ETH, and the rest
5 positions to take big chances
b. When the bull market turns around, many altcoins are discounted by 10% or even 10% off. At this time, it is very cheap to buy some altcoins with broad consensus and promising prospects, and then wait for the bull market to come.
C. During the bull market, various hot spots emerge frequently. For example, in this round of bull market, artificial intelligence, gamefi, RWA, public chain, and platform currency sectors, you can use a small amount of funds to participate in the hot speculation. After earning more than 5 times, stop profit in time and convert all into BTC and ETH. Strictly distinguish between "living" and "playing around"
The essence of finance is Ponzi scheme. When the tide recedes, we can see who is swimming naked. It is a very smart move to leave in time before the bubble of various new projects bursts.
Second, the one who can sell is the master
"If you become a shareholder by speculating in cryptocurrencies", never think that you can sell at the highest point. You will only know the highest point after the fact. There are two more reliable selling methods: target profit method and technical indicator method
Target profit method:
Be contented. Money is endless. Nothing can rise to the sky. Rise and fall are the fundamentals of the trading market. Everything has its cycle. Set your profit target or expected price and place an order in advance. For example, if you need 1 million to buy a house this year, then place an order at a price that can earn 1 million. Place an order in advance and it will be automatically executed after reaching the target. Or use the ATH price as a reference point, because it is difficult to break through the previous high. When breaking through the previous high, there will often be a big drop, so the price of the sell order is placed at a position of about -4% of the stage high. Technical profit-taking method:
MACD is set to (12, 26, 9), and the K-line chart selects the 5-day moving average and the 7-day moving average. When the 5-day moving average crosses down and falls into the 7-day moving average to form a death cross, and the MACD DIF line crosses down and crosses DEA to form a death cross, it means that a big drop is about to begin.
Taking ETH as an example, ETH plummeted on December 4, 2021, September 7, and May 13. It can be seen that this theory is still quite correct.
3. Only those who know how to keep their warehouse empty are the masters
In a bull market, you must hold on to your coins, and in a bear market, you must be short. The highest level of trading is short, because you can only make the most profit by waiting for a big drop and waiting for corpses to fall everywhere before you enter the warehouse to clean up the mess. Short is still very difficult, because you not only have to endure a long period of boring waiting, but also have to endure the fomo mentality after others continue to make money. According to the volatility of ETH, the chance of a 20% drop is still very good to grasp 4-5 times a year.
