Those who can sell are masters; those who can hold cash are the true masters?
Based on my more than 10 years of experience in the crypto space.
Some buying and selling methods summarized from my thoughts are organized as follows:
1. Those who can buy are apprentices.
The best operational strategy in the crypto space is:
a. Regardless of bull or bear markets, 5 layers of positions should be in BTC and ETH, while the remaining 5 layers can be used to take big opportunities.
b. When the bull turns back, many altcoins have dropped to 10% of their value, or even lower.
0.1 discount. At this time, it is very cheap to buy some promising altcoins with consensus and then wait for the bull market to arrive.
c. During a bull market, various hot topics emerge. For example, in this round of the bull market, sectors such as artificial intelligence, gamefi, RWA*, public chains, and platform tokens can participate in hot speculation with a small amount of funds. After earning more than 5 times, take profits in time and convert everything into BTC and ETH, clearly distinguishing between 'making a living' and 'playing around.'
The essence of finance is a Ponzi scheme*. When the tide goes out, you will know who is swimming naked. Leaving before the bubbles of various new projects burst is a very wise move.
Second, those who can sell are masters.
When trading crypto becomes like being a shareholder, never think that you can sell at the highest point; the highest point is only known in hindsight. Two reliable selling methods are: target profit-taking method and technical indicators method.
Target profit-taking method:
Contentment brings happiness; money cannot be earned endlessly. Nothing can rise indefinitely; fluctuations are fundamental to trading markets, and everything has cycles. Set your profit targets or expected prices in advance, for example, if buying a house requires 1 million this year, then set the price to earn 1 million and place the order ahead of time to execute automatically once the target is reached.
Alternatively, use the ATH* price as a reference point. It is difficult to break through previous highs; often, a significant drop occurs when breaking through previous highs. Therefore, set sell orders around 4% below the peak of that phase.
Technical profit-taking method:
Set MACD to (12, 26, 9). Choose a 5-day moving average and a 7-day moving average. When the 5-day moving average crosses down into the 7-day moving average forming a death cross, and the MACD's DIF line crosses down the DEA* forming a death cross, it indicates that a significant drop is about to begin.
Taking ETH as an example, ETH had significant drops on December 4, 2021, September 7, and May 13, and this theory still holds quite accurately.
3. Only those who can hold cash are the true masters.
In a bull market, firmly hold onto coins; in a bear market, firmly hold cash. The highest realm of trading is holding cash because waiting for a significant drop to enter and clean up the aftermath can yield the greatest profits. Holding cash is still difficult because you must endure long periods of tedious waiting and the FOMO mindset after others continuously make profits. Based on ETH's fluctuations, a 20% drop can be easily grasped 4-5 times a year.
