There is no top when the price goes up, and no bottom when the price goes down.
Market trends often exceed most people's imagination. Take Bitcoin for example. When the price of Bitcoin gradually climbed, many people still didn't believe it could reach a high of $150,000. They were limited by their inherent cognition and thought that the price was already ridiculously high and could not rise any further. But they ignored the crazy power of the market. Once the bull market came, the room for price increase was immeasurable.
Similarly, people always misjudge during the decline. When Bitcoin was at $68,000, many investors thought it was the bottom and were ready to buy at the bottom. However, the market continued to fall ruthlessly, and when it fell to $62,000, these investors began to panic.
Even more unexpectedly, the price experienced a sharp spike, directly reaching $56,000. This situation caused heavy losses for those investors who blindly guessed the bottom. It’s like someone groping in the dark, thinking they found a safe foothold, only to discover that they are standing on a deeper abyss. This teaches us not to rely on subjective assumptions to guess the market's top and bottom because market changes are endless; it will not operate according to our expectations. Each transaction should ideally not exceed 5% at a time to achieve high returns, yet this approach often backfires. True experts build their positions by dividing them into batches, following a ratio like 5%.
In cryptocurrency investing, capital management is crucial. Especially for investors with small amounts of capital, they often feel the need to go all in. For example, an investor with $1 million may only invest $50,000 each time they build a position. The benefits of this approach are clear. First, the opportunities for trial and error are greatly increased. Suppose that after the first build, the market moves contrary to expectations; their loss would only be 5% of the total capital, leaving enough funds for subsequent operations.
If you invest a large amount of money all at once, a wrong judgment may lead to heavy losses, even wiping out your entire investment. Additionally, this method of gradually building a position allows for cost optimization. As market prices fluctuate, subsequent purchases may be made at lower prices, thereby reducing the overall cost. It’s like building with blocks, constructing a stable investment portfolio piece by piece.
Fear of heights means a person is destined for hardship.
In the cryptocurrency space, every cryptocurrency has major forces operating behind it. The cost that these forces invest to promote the development of a cryptocurrency is extremely high. From initial publicity expenses to acquiring chips, and then to developing related technologies and applications, these add up to a huge number. This is not simply a 20%-50% cost proportion; it could be several times or even dozens of times more than we imagine.
For example, some emerging cryptocurrencies need to conduct large-scale promotional campaigns globally to stand out in a competitive market, and the advertising costs, salaries for marketing personnel, etc., are considerable expenses.
At the same time, to acquire enough chips to control price movements, major forces may need to buy a large amount on the market, which further increases costs. Therefore, when we see a cryptocurrency's price continuously rising, do not shy away just because the price is high. Behind this price lies solid value support; the major forces need a higher price to realize profits, which provides us investors the opportunity to follow and profit.
The bull market is the only opportunity for a turnaround.
The legendary figure in the investment world, Warren Buffett, bases his investment strategy largely on long-term value investing and relies on the relatively stable market environment of the U.S. stock market. However, even an investment master like Buffett has to face losses if he encounters a bear market. He chooses to hold on to U.S. stocks long-term and stay in Omaha because the market environment there suits his investment style. In the cryptocurrency space, the situation is even more complicated and extreme. During a bear market, almost all cryptocurrencies are falling, market sentiment is extremely pessimistic, and it is difficult for investors to profit. In contrast, a bull market is completely different; a large amount of capital floods into the crypto space, and prices of various cryptocurrencies soar. Like the tide, the power of a bull market can lift all boats. At this time, as long as investors choose relatively high-quality cryptocurrencies, there is a great chance to achieve significant asset appreciation. Therefore, for cryptocurrency investors, seizing the opportunity in a bull market is key to turning things around.
The lagging nature of technical indicators.
Technical indicators are tools that many investors rely on in cryptocurrency investing, but we must clearly recognize their limitations. Technical indicators are often calculated and generated based on historical data, which leads to their lagging nature. For example, when the cryptocurrency price is strongly rising, we may find that some commonly used technical indicators, like MACD, also start showing positive trends. However, at this point, the price has actually risen very high. Many investors, seeing the positive signal from technical indicators, blindly chase the rise, often getting trapped at high levels. Take the MACD indicator, for instance; it often shows a golden cross one day, leading investors to believe the upward trend is coming, only for it to turn into a death cross the next day, with the market's trend sharply declining. This situation is common, indicating that we cannot solely rely on technical indicators as the main basis for buying and selling; instead, we should use them as a reference, combined with an analysis of market fundamentals, capital flow, and other factors to make more reasonable investment decisions.
Firmly believe that you will ultimately conquer the market.
In this challenging field of cryptocurrency, confidence is key to success. Every individual who has achieved success in the crypto space possesses a strong sense of self-confidence. Their investment journey has not been smooth sailing; they have all experienced losses. However, they have never been defeated by these setbacks. They trust their judgment, believe in their understanding of the market, and consistently stick to their investment strategies. Like travelers moving forward in the dark, they have a light in their hearts, which is their confidence in themselves. If an investor does not even believe that they can make money in the cryptocurrency space, they can easily waver when facing market fluctuations and various complex situations, leading to wrong decisions. This confidence is not blind arrogance but is rooted in a deep understanding of market laws, continuous refinement of their investment strategies, and a summary of past experiences. Using just one method: the graphical volume trading method - EMV indicator, I’ll share my recent experiences and insights. At the end of last year, I entered the crypto space with $200,000, initially with a mindset of just trying it out. I did not blindly follow trends but deeply researched the EMV indicator. When the cryptocurrency price was at the market top, I noticed a very clear phenomenon: once there was a large trading volume, the EMV value would react in advance. It started to decline and gradually approached the zero axis.
This process is like the calm before a storm; the market may still be bustling with activity on the surface, but in reality, danger is quietly approaching. When the EMV value turns from positive to negative, it is a clear signal that the market is about to reverse and enter a downward trend. Based on this signal, I decisively sold the cryptocurrencies I held. Thanks to the precise application of this indicator, my assets grew like a snowball. In the upcoming layout direction, I will guide everyone to aim for the highly profitable opportunities in altcoins, especially those with great potential, where a tenfold return is not a problem. If you want to make big money in a bull market, like and comment to join me in strategizing for the entire bull market.
