Many people trade cryptocurrencies simply to find an effective method. In fact, the most practical strategies are not that complicated; the key is whether you can truly stick to them.

First, observe the overall market trend. When the entire market crashes, if the coin you hold only drops a little or remains unchanged, it often indicates that there is capital supporting the price. These types of coins are usually safe assets and are worth holding onto because they tend to rebound more strongly later.

For short-term trading, the most straightforward approach is to use moving averages. The 5-day moving average is a barometer of short-term momentum—if the price is above it, hold; if it falls below, reduce your position. Medium-term investors look at the 20-day moving average, following the same logic. Find a method that suits you and then execute it rigorously; this is much more effective than frequently changing strategies.

Has the main upward wave formed? At this point, the most critical factor is to observe the trading volume. If the price is rising but volume is not significantly increasing, it’s actually an opportunity—enter decisively. Continue holding during volume-driven upward movements, and even if there’s a volume decrease during a pullback, as long as the trend line isn’t broken, don’t rush to sell. But once there’s a volume-driven decline and the price breaks below the support level, you must reduce your position—don’t be soft-hearted.

After a short-term buy, if there’s no reaction after three days, sell if you can—don’t wait. Conversely, if the coin’s price drops immediately after purchase and losses reach 5%, you must cut your losses—that’s the bottom line for capital preservation.

If you see a coin drop 50% from its all-time high and it’s been declining for more than 8 consecutive days, it usually indicates an oversold condition. A rebound could happen at any time, so you might consider a light position to test the waters.

Speaking of which, the leading coins are the most worth paying attention to. They rise fiercely and fall less sharply, which is the value of a leader. Don’t be fooled by the price—just because a coin drops a lot doesn’t mean you should buy, and a big rise doesn’t mean you should miss out. The real skill is to buy at relatively high levels and sell at even higher levels, capturing the volatility between these points.

The overall direction of trading is very important. Follow the trend rather than fighting against it. Choosing a buy point isn’t about the lowest price but about the most suitable position given the current market conditions. During a major decline, don’t call the bottom every day; abandon coins that show weak performance and focus on the strong trend leaders.

Occasional profits are often just luck. The real test is whether you can sustain profits. Carefully review each trade, analyze whether your profitable trades were due to strategy effectiveness or just luck. Establish a stable trading system that suits your personality—this is the secret to long-term survival.

One last point: holding cash is also a form of trading. Don’t force trades if you lack confidence; learning to stay out of the market is a skill in itself. The primary goal in trading is to protect your capital, and only afterward consider profits. This game isn’t about how frequently you trade but about your success rate per trade.