Essence of Trading Cryptocurrencies
1. Don't be greedy or impatient: What the cryptocurrency market needs is rationality and patience. Greed will only make you impulsive and miss good opportunities.
2. Understand market structure: Don't just rely on 'whales protecting the market.' The market is influenced by many factors, including the global economy, policy changes, technological innovations, etc. Never place your hopes on a single perspective.
3. Main players have difficulties too: Understand the operational difficulties and strategies of major players, but don't get led by them. The market is complex, and the intentions of major players are not always obvious or smooth.
4. Pay attention to volume at the bottom: Increased volume at the bottom might signal capital entering the market, but don't trust it blindly; consider other factors to avoid false breakouts.
5. Patiently deal with market washing: Market washing is a common operation aimed at shaking out weak investors. Stay calm and patiently wait for the market trend to clarify before taking action.
6. Mid-term strategy and position management: Focus on holding cryptocurrencies you are optimistic about, but maintain a certain level of liquidity to optimize costs and returns through rolling operations.
7. Short-term trading skills: Short-term trading requires sharp market perception and quick decision-making. Candlestick charts, market sentiment, popularity, and the speed of increases are all very important.
8. Safety of buying at the bottom: Cryptocurrencies during the bottoming phase are relatively safe, but confirming the bottom requires time and more supporting signals; do not be hasty.
9. Be cautious when chasing up: Chasing up may bring quick profits, but the risks are equally high. Accurately assess the sustainability of the upward trend to avoid buying at high levels.
10. Application of technical indicators: Divergence is one of the keys to technical analysis, which can help predict market reversal points. But combine it with other analysis methods and practical situations to avoid single judgments.
