Scan to Download Gate App
qrCode
More Download Options
Don't remind me again today

6 Practical Crypto Trading Strategies: Understand the Rules Before You Want to Make Money

In the cryptocurrency market, most losses do not come from “not knowing how to analyze”, but from not understanding the operating rules of the market. Spot and futures contracts ( have their own characteristics; traders must choose the appropriate method instead of following the crowd. Emotional trading only turns you into a “bag holder” for the market makers. Below are 6 practical strategies commonly applied by experienced traders to “get around”, reduce risk, and find reasonable entry points.

  1. Bottom Fishing Technique When Falling for Several Consecutive Days When a coin drops for 9 consecutive days, it is often a sign of an extreme capitulation cycle. The 10th consecutive decrease often triggers a recovery window due to exhausted selling pressure. Application: Observe the coins continuously decreasing for many days. When entering the 10th day, consider placing an order with a small capital ratio. Set a stop-loss in case the downtrend has not yet ended. This is a recurring pattern caused by market psychology and the actions of the market maker.
  2. Rule for Taking Profits When Increasing for Two Consecutive Days If a coin rises sharply for 2 consecutive days, there is a high likelihood that profit-taking will occur. In crypto, profits are only “real profits” when they have been realized. Application: When a coin rises for two consecutive days, reduce your position. Don't FOMO and hold for too long because corrections often come unexpectedly. Convert part of the profits into stablecoins to preserve capital.
  3. Breakout Signal from Sideways Zone )Sideway( When a coin goes sideways for about 6 days, and on the 7th day suddenly surges sharply, this is often a sign that large funds are preparing to “pull”. Application: Monitor tightly accumulated areas. When a spike in bullish candles appears along with volume, one can participate in the trend. Do not enter a position when it has risen too high in the day. This is a pattern that often appears before strong pump events.
  4. Time-Cost Rule )Time-Cost Rule( If after 2 days of placing the order the price has not returned to the breakeven point, this is a signal that the short-term trend is unfavorable. Application: If after 48 hours the transaction fee is still not covered, cut your losses. Don't “hold onto hope” because wasting time is the biggest cost. Allocate capital for better new opportunities. This is a principle that helps transactions not get stuck in sideways or downward trending coins.
  5. Ranking Increase Rules in the Price Increase Rankings Coins ranked 3rd in the top gainers often have the potential to jump into the top 5 even stronger. The coin ranked 5th can easily challenge the top 7–10. However, the dangerous thing is: most people wait to “go ashore” before selling, leading to missing the upward trend and getting caught in a correction. Application: Observe the price increase ranking in the last 24 hours. Only participate when the upward trend is confirmed. Do not hold excessive expectations.
  6. Warning From Quantitative Model Coins that rise for 4 consecutive days often have a high probability of experiencing a strong sell-off at 3 PM on the 5th day according to the time many trading bots operate. Application: If the coin has increased for 4 days, be cautious. Avoid opening new positions on the 5th day. Prioritize taking profits before the time that is likely to see a sell-off. Long-Term Survival Strategy: Regular Investment )DCA( Short-term trading can yield quick profits but can also lead to total loss. The most sustainable strategy is still: Make regular purchases according to the period )DCA(. Do not care about daily-weekly fluctuations. Optimize long-term average price. Suitable for both bull and bear markets. Conclusion Understanding the rules of the game is the most important thing when entering the crypto market. 6 strategies are not “holy secrets”, but are market patterns that have repeated over many years, helping traders: Risk control Find reasonable entry-exit points Reduce emotions, increase discipline In crypto, the winner is not the one who trades the most, but the one who knows to stand on the sidelines when the market is unclear.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)