The volatility of the cryptocurrency market is well known. As an investor who has experienced a decade of ups and downs, I deeply understand that success is not achieved overnight. After experiencing a massive loss of 70% in the first three years, I continuously reflected and optimized my strategy, ultimately achieving stable profits in the following six years. Today, I want to share some core insights, hoping to provide some reference for those who view cryptocurrency investment as a long-term career.

The primary strategy is to confront and overcome human weaknesses. The extreme volatility of the encryption market often amplifies emotional responses from investors. Therefore, it is crucial to establish and strictly enforce stop-loss and take-profit rules. For example, a forced stop-loss can be set when a single trade incurs a loss of 5% of the principal, to prevent small losses from turning into catastrophic losses. Similarly, when profits exceed 15%, a trailing take-profit strategy can be adopted, such as exiting when there is a 10% retracement. The key lies in mechanically executing these rules to overcome the mentality of luck and excessive greed and fear.

Secondly, it is important to deeply understand the relationship between volume and price. In the cryptocurrency market where there are no restrictions on price fluctuations, trading volume often reflects the true market direction more than price trends. For example, when trading volume shrinks but the price reaches a new high, if it is in an upward trend, it may indicate reduced selling pressure and present a buying opportunity on dips. Conversely, when trading volume suddenly increases but the price stagnates, especially near historical highs, it may signal a market top. Additionally, if trading volume significantly decreases after breaking through key moving averages, it may be a sign of a shakeout, and investors need to carefully observe subsequent trends.

These strategies are derived from years of practical experience and hope to assist more investors in achieving success in this market full of opportunities and challenges. Remember, the market is never short of opportunities; the key is to protect your funds and wait for the best moment.