Spot + can only buy up, contracts + can short; if you have more money, buy spot in batches, avoid altcoins and just buy BTC + ETH +, and you can also use dollar-cost averaging. If you have less money, buy contracts and take a gamble to turn a bike into a motorcycle. Alternatively, during market declines, you can also buy contracts to short.
It took me nearly two years to truly earn my first bucket of gold in the cryptocurrency world. I got involved in contract trading in 2018, and at that time, I was fearless and lost over 800,000 in half a year based on my own strength while still working. Although most of it was my savings, I didn’t dare to let my family know because they didn’t understand or support me at the beginning. I felt the most painful thing was not how much I lost, but the feeling of loss, the negative emotions under long-term pressure made me feel gloomy.
Cryptocurrency survival guide: Revealing super practical trading tips (pure dry goods).
In the cryptocurrency world, trading strategies are your 'secret weapon'. The following mnemonics are the crystallization of practical experience!
- Entry section: Testing the waters in cryptocurrency, preparation comes first; enter steadily, refuse to rush in.
- Sideways section: Low-level sideways movement creates new lows; it's the right time to buy heavily at the bottom; high-level sideways movement breaks high, decisively sell without hesitation.
- Volatility section: Sell when rising, enter when diving; observe sideways, reduce trading. Sideways means holding tight, and the rise may be just a second away; during rapid rises, beware of sharp drops, and be ready to take profits at any time; during slow declines, it’s a good time to gradually average down.
- Timing section: Do not chase highs and sell; do not jump into the water and buy; in sideways markets, do not trade. Buy on bearish candles, sell on bullish candles; contrarian trading is the way to stand out. Buy on a big drop in the morning, sell on a big rise in the morning; do not chase highs in the afternoon when the market rises, buy on the next day after a big drop in the afternoon; do not panic sell on a big drop in the morning, remain steady when the market is flat; average down when trapped, excessive greed is not advisable.
- Risk awareness section: A calm lake may lead to high waves, followed by big waves; after a big rise, there must be a pullback, K-lines show a triangle for many days. In an uptrend, look for support; in a downtrend, look for resistance. Over-leveraging is a big taboo, and acting on impulse is not feasible; in the face of uncertainty, know when to stop, grasp the timing of entry and exit. Trading cryptocurrencies is essentially trading mindset; greed and fear are the biggest enemies; chasing highs and cutting losses requires caution, a calm mind leads to ease.
In addition to the mnemonics, I have also compiled several super practical trading methods, which can benefit both novice beginners and seasoned players.
Fluctuation trading method: Most market conditions are in a fluctuating pattern; using high sell and low buy within a range is the foundation for stable profits. Utilize BOLL indicators and box theory, combined with technical indicators and patterns to find the right resistance and support. Follow short-term trading principles and avoid greed.
Breakthrough trading method: After a long period of consolidation, the market will choose a direction; entering after the breakout can lead to quick profits. However, you need to have precise judgment on breakouts, maintain a stable mindset, and avoid greed and fear.
Unidirectional trend trading method: When the market breaks through the range, it will form a unidirectional trend, trading with the trend is key to profit. Enter during pullbacks or rebounds, referencing K-lines, moving averages, BOLL, trend lines, and other indicators; skilled use will allow you to navigate smoothly.
Resistance and support trading method: When the market encounters key resistance and support levels, it often gets blocked or supported; entering at this time is a common strategy. Use trend lines, moving averages, Bollinger Bands, parabolic indicators, etc., to accurately judge resistance and support levels.
Callback rebound trading method: After significant rises and falls, a brief pullback or rebound will occur, seize the opportunity to easily profit. Mainly based on K-line patterns, good market sense can help you accurately grasp highs and lows.
Time period trading method: Morning and afternoon sessions have small fluctuations, suitable for conservative investors; although the time to profit from orders is long, it's easier to grasp the market; evening and early morning sessions have large fluctuations, suitable for aggressive investors, who can make quick profits, but the difficulty is high and requires strict technical and judgment capabilities.
Here are a few things you need to do next.
1. First, adjust your mindset. Treat trading cryptocurrencies as a game, regardless of wins or losses. Only in this way can you trade cryptocurrencies easily in the market.
2. Use spare money for trading. The funds for trading cryptocurrencies should definitely be spare money that won't affect your life when lost; only by using spare money for trading can you hold on and let go easily.
3. Take the time to learn. If you want to trade well in cryptocurrency, clarify practical technical indicators and strategies as soon as possible, practice more, and summarize often.
4. Be cautious in the initial battle. Retail investors usually have limited funds, so effectiveness is paramount. Especially for the first trade, preparations should be meticulous, aiming for a successful debut. Before operating, make extensive use of simulation systems for practice, and only take action after gaining some experience. Otherwise, entering the market may lead to being trapped or forced selling, which can significantly impact confidence.
5. Preserve your principal, and use the money you earn to trade cryptocurrencies, which will make you feel relaxed and allow your operations to be more effortless.
If you are just entering the market, come directly, and I will teach you to learn while operating; if you are already in it and it’s not ideal, you can also come, I will help you, and won’t let you make mistakes repeatedly; if your positions are trapped, I will provide reasonable solutions based on your entry points. Because everyone has different levels at which they are trapped, the methods of resolution will also differ. Some are suitable for conservative traders while others are for aggressive traders. I will definitely use the most suitable methods to genuinely solve your problems and assist you in exiting.
If price movements are random, why are there so many classic chart patterns? The answer is that 'the mindset and decision-making of most market participants are quite similar.' If a certain price level (price pattern) is tested multiple times by the market but not broken, it will give traders more confidence, and they will be more convinced of the reliability of this price pattern.
Ten small tips for trading cryptocurrencies to earn a million a year!
1. Keep calm and rational: In the cryptocurrency world, rationality and patience are the foundation of success. Avoid impulsive behaviors driven by greed to avoid missing good opportunities.
2. Understand the overall market: Don’t just focus on the 'big players' movements; the market is influenced by multiple factors such as global economic conditions, policy dynamics, and technological innovations, and should be considered comprehensively.
3. Understand the main players' dilemmas: Grasp the logic and difficulties of major players' operations, but maintain independent thinking and not be swayed by their actions. The market is complex and variable, making the intentions of major players hard to grasp.
4. Pay attention to unusual activities at the bottom: Increased volume at the bottom may indicate an influx of funds, but it should be analyzed in conjunction with other indicators to beware of false breakout traps.
5. Respond calmly to wash trading: Wash trading is a market norm aimed at eliminating impatient investors. Maintain composure, and wait until the trend is clear before making decisions.
6. Medium-term layout and position control: Select cryptocurrencies for long-term holding while retaining some funds for flexible operations, optimizing investment efficiency through rolling strategies.
7. The essence of short-term trading: Short-term trading requires keen market insight and decisiveness. Pay attention to K-line patterns, market sentiment, changes in popularity, and the speed of price increases.
8. Bottom-fishing buying strategy: Buying during the bottom formation is relatively stable but requires patience to wait for confirmation signals to avoid blind bottom fishing.
9. Be cautious when chasing highs: Chasing highs may yield quick profits, but risks also increase accordingly. Accurately assess the sustainability of the upward trend to avoid being caught at high levels.
10. Comprehensive use of technical indicators: Divergence phenomena are important signals in technical analysis, but should be combined with other analysis tools and market realities to avoid one-sided judgments.
I have traversed the market for many years, deeply understanding its opportunities and traps. If your investments are not going well and you feel reluctant about your losses, leave a 999 in the comments! Sharing insights about uncertainty.