Author: ardizor, Cryptocurrency Researcher
Translation: Felix, PANews
Each round of the cryptocurrency bull market often follows the same pattern: 99% of people either lose everything or simply leave the market when they break even, without being able to profit in time. This situation arises because the cryptocurrency market is mainly driven by emotions such as fear, greed, and FOMO.
Many people can tell you when to buy, but no one can tell you when to sell. Cryptocurrency researcher ardizor has summarized strategies for selling at the highest price. Although it is not possible to predict every trend accurately, deepening understanding of market structure and rules can help ensure profits and close positions at the best time.
Like any other asset, the price of Bitcoin also follows specific patterns. These patterns will be constantly repeated due to human emotions, especially FOMO. The following chart illustrates the emotions of traders at different time periods. Although each token may have slight variations, the underlying emotions are consistent.
Taking the market cycle model in the 2021 bull market as an example. To maximize profits, investment in altcoins should be made during the downturn. Remember: "Buy when the market is bleeding, even if it's your own blood."
It is crucial to recognize when altcoins start to soar. During the bullish phase of altcoins, the returns may be 100 times that of Bitcoin or Ethereum, as their potential for increase may not just be 2 times, but as much as 1000 times. In the Bitcoin-dominated cycle:
- If Bitcoin's market dominance increases and the price of Bitcoin rises, the price of altcoins will trade sideways or fall;
- If Bitcoin's market dominance increases and the price of Bitcoin falls, the price of altcoins will fall;
- If Bitcoin's market dominance increases and the price of Bitcoin trades sideways, the price of altcoins will fall;
- If Bitcoin's market dominance decreases and the price of Bitcoin rises, the price of altcoins will rise;
- If Bitcoin's market dominance decreases and the price of Bitcoin falls, the price of altcoins will trade sideways or rise;
- If Bitcoin's market dominance decreases and the price of Bitcoin trades sideways, the price of altcoins will rise;
You may already know how the market operates, but without a system, you cannot effectively manage emotions. Here are the trading rules you need to remember:
View market profits as a salary, not a lottery win
Respect your money and do not squander it. There is no way to get rich overnight in this world. Only by being steady and solid can you achieve victory.
Buy based on expectations, sell based on news
Do not appear after the revelry is over. When there is news, it is time to sell, not buy. If you buy late, you can only satisfy those who bought early and are now driving new Lamborghinis with laughter.
If you do not currently hold the token, would you buy it immediately from your investment portfolio?
Even if the investment is bad, people usually do not want to accept losses or realize that they have made bad investments. They often come up with countless reasons to explain why they hold these tokens. When facing losses, if you ask yourself the above question, you may be surprised by the number of junk assets in your investment portfolio.
To achieve truly high returns, consider the following factors when analyzing promising tokens:
- What is the potential for increase? (Compare this token with other tokens in the same field)
- Who are the major holders and top venture capitalists?
- Information such as roadmap, partnerships, team, etc.
- Is the token about to be listed on a CEX? (Listing usually leads to increased liquidity and price, especially when the announcement is made)
Related reading: From $100 to $100 million, exploring the trading insights and holdings of the legendary trader GCR
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