This article teaches you how to speculate on cryptocurrency: when to buy and when to sell.

The key to speculating on cryptocurrencies is timing — knowing when to buy and when to sell.

The secret to successful speculation can be summarized in two phrases: minimize losses and let profits run.

Minimizing losses means immediately cutting your losses when you notice that the trend of a token is not favorable. The goal is to minimize losses as much as possible. Once you have profits, it is important to be patient and allow small profits to turn into big profits.

The first priority when selecting a buying point is to determine the stop-loss point.

There are three factors to consider when buying tokens: value analysis, technical analysis, and market cycles.

Some people only consider value analysis, focusing solely on the intrinsic value of the project, like Warren Buffett. Others rely solely on technical analysis, believing that the market’s perception of the token is reflected in its price and trading volume. The majority of traders fall into the second category.

The price of a token reflects the future prospects of the company. The most appropriate approach is to use value analysis to select tokens and then rely on technical analysis for trading decisions. Remember to minimize losses when losing money and maximize gains when making money by setting appropriate stop-loss points.

Imagine you are a whale (a large investor), how would you influence public sentiment?

Whales have simple tricks up their sleeves. When they want to buy, they either do it quietly or create panic selling among the public. In the former case, you may notice an increase in trading volume, but it won’t be significant, and prices will gradually rise. In the latter case, they create common selling points that everyone acknowledges as good for selling. When whales want to sell, they either buy first, causing prices to soar and triggering greed among the public, or they create recognized buying points.

Finding the critical point of price fluctuation is a learning process in cryptocurrency speculation. It requires continuously discovering the critical points that suit your personality and risk tolerance.

When considering when to sell tokens, there are two aspects to consider: selecting the take-profit point and choosing the appropriate selling point after making a profit.

It is difficult to catch the beginning and end of a token’s price movement, so traders should focus on capturing around 70% of the price swing. Do not try to find the highest point for selling because you never know how high a stock can rise. Deciding when to sell is more challenging than deciding when to buy, as emotions fluctuate between wanting to break even during losses and wanting to earn more during profits. This mindset is extremely detrimental, especially for novice traders. With such a mindset, failure is almost inevitable.

The simplest way to decide when to sell tokens is to ask yourself if you would buy this token at the current moment. If the answer is no, you can consider selling the token.

Pay attention to warning signs. With experience, you will gradually develop a feeling of when it’s time to sell. Do not ignore this intuition, but trust yourself.

Preserving capital is paramount. In any situation where the token price falls below your buying point, you should consider setting a stop-loss point. The prerequisite for making money is not losing money. For example, if a token rises from $10 to $12, your selling point should be above $10, such as $11.

Most trend followers get trapped in fluctuations, most range traders get caught in trends, most short-term traders get caught in sudden price surges, most systematic traders fail on implementation, most subjective traders succumb to their feelings, and most traders without a plan fail due to chaotic decision-making. Make sure you belong to the right category.

Knowing when to buy and sell tokens is only part of cryptocurrency speculation. Considering how much risk to take and how to allocate assets are also important aspects. Cryptocurrency speculation is a systematic process.

Note: The content provided is for informational purposes only and does not constitute financial advice. Cryptocurrency trading involves risks, and individuals should exercise caution and conduct thorough research before making any investment decisions.