Crypto trading has its tricks; mastering these will prevent losses

Many beginners lose money not because they choose the wrong coins, but because they make mistakes in their operations. Based on my own experience and those around me, I’ve found that consistently profitable traders follow one principle: do more subtraction than addition.

**Three Bottom Lines You Must Avoid**

First, let’s discuss the three most common pitfalls. Chasing the rally is the first killer. Buying when the price is falling is smart, but many wait until the price starts to rise before jumping in, ending up buying at high levels. I’ve seen too many people suffer losses because of this. Instead of chasing, it’s better to position yourself during dips in $BTC and $ETH; this mindset will keep you calmer.

Second, don’t push all your orders at once. Putting your entire capital into one order can cause panic with slight price fluctuations, leading to forced sell-offs or getting stuck in a position. Keeping some bullets in reserve gives you a chance to turn the situation around.

Third, the temptation of full position. Always thinking of going all-in for quick profits often results in the fastest losses. The market won’t give you a second chance, but it will give you a second wave of opportunities.

**Six Techniques for Greater Efficiency**

Regarding short-term trading, my advice is: if you can’t identify the direction within a consolidation range, wait. Don’t rush into trades; many people trade too frequently, and in the end, all they lose are transaction fees and slippage.

Consolidation can be annoying, but it’s also a signal. After high and low range-bound movements, the trend will gradually become clearer. Acting at that point will greatly improve your success rate. If you can resist trading during this time, you’re actually making money.

The daily closing pattern is very informative. Buy when it closes bearish (down), sell when it closes bullish (up). It sounds simple, but few people stick to it. Follow the trend; you don’t need to perfectly top or bottom every time—just capture the main waves.

Downtrends can be fast or slow; rebounds are different too. Rebounds after a sharp decline tend to be fierce, while slow declines often lead to weaker rebounds. Learning to distinguish these can help you avoid many pitfalls.

The way you build your position also matters. Using a pyramiding approach, buy less and less as you go lower, which automatically reduces your average cost. Be willing to add during dips; when prices rebound later, your gains will be more substantial.

Finally, remember this rule: after a rise or fall, the market often consolidates sideways. Don’t sell everything during a high-level sideways move; the price might continue to rise. Similarly, don’t rush to buy everything during a low-level sideways move; watch for a trend reversal. Once the market turns downward, you should decisively clear your positions.

In short, trading cryptocurrencies isn’t about secrets; it’s about mindset and discipline. Sticking to these three principles and remembering these six tips is far more effective than reckless operations.