Survival rules in the crypto world!

in hive-183397 •  17 days ago 

In the crypto market, to avoid becoming passive fodder, we need to master reverse thinking and key signals:

There must be anomalies in price fluctuations
Sharp rise followed by a cliff-like drop? Often, it's the main funds creating panic to accumulate. Weak rebound after a sharp drop? Beware of the trap of false optimism, it may be the main force looking to offload. Avoid emotional buying and selling; reverse interpret the intentions behind price fluctuations. Reverse interpretation of news - Intense good news when prices are high? Beware, this often serves as a smokescreen for withdrawal.

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Continuous bad news when the market is at a low? Opportunities may be hidden within, calmly search for valuable assets. Market news often serves specific purposes; learn to think contrary to consensus.

Key signals from trading volume
Price reaching new highs accompanied by huge volume? Beware of liquidity traps caused by 'false breakouts. Continuous volume decrease with price increase? The foundation is unstable, and the risk of a correction increases sharply. First significant volume in the bottom area? Observe the sustainability, confirm the increase before judging trend reversal. Volume is the key indicator to verify the authenticity of prices. Is the market caught in a frenzy of FOMO (fear of missing out)? Stay clear-headed and take profits at the right time. Panic sentiment spreading to freezing point? Overcome fear, rationally assess bottom-fishing opportunities.

Focus on highly liquid mainstream coins, stay away from high-risk low-consensus assets.
Blindly averaging down in a downward trend? It’s no different from amplifying losses; stop-loss discipline is crucial. Successful trading often goes against group sentiment. After the trend is established, patiently hold strong assets and let profits accumulate. Choose high-quality sectors in an upward cycle for greater efficiency. Abandon unrealistic fantasies of getting rich quickly; rely on compound interest for stable wealth growth. Strategy, patience, and time are the foundation for navigating bull and bear markets.

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Upvoted! Thank you for supporting witness @jswit.

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It was great to learn about the survival rules in the crypto world.

It is a great article of Survival rules in the crypto world!.