In the cryptocurrency market, especially during a bull market, many people can easily be misled by the noise of the market, chasing rises and selling during drops, ultimately becoming 'chives'. Here are 10 practical investment experiences in the cryptocurrency market to help you avoid traps and seize real opportunities:
1. Popular coins fall quickly too
In a bull market, coins that are particularly popular (usually accompanied by high control) rise quickly but fall even faster. The market makers drive up prices to attract retail investors; once they complete their sell-off, the price will collapse rapidly.
2. Truly potential coins are often low-key
Truly potential coins or bottom coins rarely have extensive promotion. Only a small number of people might occasionally mention them when they are at the bottom (e.g., former LINK, THT, SOL). If you find a coin suddenly being crazily promoted, you should be cautious.
3. The trend in the cryptocurrency market is always a smooth curve
From a global perspective, the trend in the cryptocurrency market is always a smooth curve, rather than a straight line rise or crash. Short-term surges and drops are merely fluctuations in market sentiment; the long-term trend is the true direction.
4. Market makers' tactics for altcoins
The tactics of market makers for altcoins are quite similar: heavy dumping + slow rising. First, they create panic through dumping to attract retail investors to cut losses, then gradually raise prices to attract more people to take over. If you see a coin suddenly plummet, do not rush to bottom-fish; it may be the market makers positioning themselves.
5. The trap of new coins on exchanges
New coins on exchanges that first surge and then plummet should definitely be avoided. These coins are often tools used by market makers to harvest retail investors; the surge is to attract attention, while the drop is to offload.
6. It is normal for prices to drop when you buy and rise when you sell
In the cryptocurrency market, it is quite normal for prices to drop when you buy and rise when you sell. If you cannot withstand this level of volatility, it indicates that your mindset still needs refinement. Investment requires patience, not being swayed by short-term fluctuations.
7. Corrections after profits are signals
When you buy a coin and its price rises instead of falling, but suddenly starts to correct after you’ve made a 5%-20% profit, this is often a signal that market makers are beginning to harvest. At this moment, timely profit-taking is key.
8. The most violent rebounds often come from retail investors' holdings
Coins that rebound the most aggressively are often not potential coins but rather retail holdings. Market makers attract retail investors with rapid price increases, then quickly crash the price to complete their harvest.
9. The rhythm of potential coins
In a bull market, some potential coins may perform mediocrely in the first half but often initiate several times the rising rhythm in the second half. Hold onto truly potential coins patiently, rather than frequently switching positions.
10. Coins that remain flat may be potential coins
In a bull market, if a coin experiences several times its increase and still remains flat for several months, it is likely a potential coin. A flat period indicates that market makers are washing and accumulating for the next wave of increase.
The market is always right; the problem lies within oneself. Do not complain about the market; instead, reflect on your strategy and mindset.
I am Egg Brother, having experienced multiple rounds of bull and bear markets, I have rich market experience in various financial fields. Here, I penetrate the fog of information to discover the real market. Seize more opportunities of wealth codes and find truly valuable opportunities, don’t miss out and regret later!
$LAYER
#币安上线LAYER #你看好哪一个山寨币ETF将通过？
