I have a friend who has been trading cryptocurrencies for eight years. Back in the day, he felt uneasy just hearing the words 'BTC', but now he has managed to support his family through trading.
He has shared a lot of insights with me, which he gained through countless struggles and by crawling out of numerous pitfalls. I sincerely hope this can help those who are destined to see it, allowing you to have fewer setbacks on the path of trading cryptocurrencies.
He said that when the market is hot and the prices are surging, don't hesitate; you must boldly increase your holdings. It's like driving on the highway; when the road conditions are good, you should step on the gas hard and let the money generate more money.
Before trading cryptocurrencies, you must first understand the macro information and find a support point. This is as crucial as laying a solid foundation when building a house. If you are doing short-term trading, then pay attention to the ten-day moving average. If this line is broken and hasn't bounced back for a while, then you should run quickly and not cling to false hopes.
When the price of a cryptocurrency is low, if the trading volume significantly increases but the price isn't rising much, and then the price adjusts but doesn't break the previous consolidation level, this is a rare opportunity to buy. The logic behind this is like the main force quietly accumulating positions, and the price adjustment is their signal to the market that they have finished buying.
If you accidentally get trapped, don't keep thinking about how much you initially spent on the purchase. Once the price rebounds, you must decisively seize the opportunity to sell, and wait until the price drops again to buy back. Don't stubbornly think that you must wait for it to return to your purchase price before taking action.
When trading cryptocurrencies, you should choose those that are likely to surge significantly. Although their prices are highly volatile, they often see a major rally after a correction. If you notice a certain cryptocurrency rises sharply every few days and the correction is no more than 30%, don't hesitate; get in quickly, as there may be even greater surprises waiting for you.
The most important thing in trading cryptocurrencies is to have composure. For the cryptocurrencies you are optimistic about, as long as they don't break the key support level, be patient and wait. Don't get tempted by other cryptocurrencies that are rising rapidly and chase after them, only to see the ones you originally held start to rise again, leading you to chase another one. This indecisiveness will only leave you empty-handed and potentially incur losses.
I also want to remind everyone that the cryptocurrency market is very deep and full of uncertainties and challenges, but opportunities are like treasures hidden in the dark that occasionally pop up. Investors must fully recognize the risks when deciding to step into this battlefield and always remain calm and rational, using a robust strategy to respond to the market's fluctuations!