6 Principles of Cryptocurrency Trading – Security & Asset Protection

The crypto market is always full of opportunities, but most investors fail not because of a lack of good coins, but due to a lack of principles and discipline. There's no need to chase after news, no need to gamble on luck, just mastering the core principles can help assets avoid significant losses and even achieve sustainable growth. Below are 6 important trading principles distilled from real-world experience: ❶ Fast increase + slow decrease = The organization is quietly accumulating If the price skyrockets but then decreases very slowly, it is highly likely that large capital is accumulating. This is often the initial signal for a new growth cycle. ❷ Rapid decrease + slow recovery = The organization is liquidating stock On the contrary, when the price is heavily sold off and then recovers very slowly, it is a sign that the “sharks” are pulling out their capital. Retail investors who jump in at this time often become the ones bearing the risk. ❸ Large volume ≠ end, but small volume = danger A strong increase in trading volume may not necessarily indicate a peak, but when the volume continuously declines, the market lacks vitality. At this point, the risk is very high. ❹ Don't rush to catch the bottom when there is a surge in volume. Suddenly, a deep red candle appears with large volume does not mean that “the bottom has been reached”. Wait for accumulation and sustainable volume growth to confirm the trend. ❺ Volume = Emotion → Price is just the result Trading volume reflects the market sentiment of greed, fear, panic. Price is just the final outcome. Those who understand volume will grasp the “story behind the price.” ❻ “Wu Wei” is the ultimate power. Do not be greedy, do not be afraid, do not be swayed by short-term fluctuations. Maintain a calm mindset, discipline according to the plan – that is the weapon for survival and long-term victory. 🔑 The cryptocurrency market is not the enemy, but rather the ego of each individual is the greatest challenge. You don't need to run faster than others, but rather find the bright path so you won't be stuck in the cycle of losses. 🚀 Opportunities are always ahead – you just need to know how to see and seize them.