Crypto trading may seem complicated, but in reality, it's just a few logical patterns repeated over and over. The most effective method I've used boils down to closely monitoring market signals and risk management—stick to this approach, and you can make decent profits in a few months.

**Market Protection and Confidence in Holding**

When the market crashes sharply, if your coins only experience minor declines, it's no coincidence. It often indicates that major players are absorbing sell-offs and protecting the price from excessive drops. In such situations, hold steady and be confident; usually, there will be a rebound afterward.

**Simple Logic of Moving Average Trading**

Short-term traders can focus on the 5-day moving average: hold when the price is above the 5-day MA, and sell when it falls below. Mid-term traders look at the 20-day MA, with the same logic—continue holding when the price is above, consider exiting when it drops below. It sounds simple, but few people stick to this discipline. The method that suits you isn't scarce; what's scarce is the ability to follow your plan consistently.

**Volume Interpretation During Major Uptrends**

If the price has entered a major upward wave and there's no obvious surge in trading volume, then acting decisively to follow the trend is usually correct. After entering, if volume increases and the price rises further, hold on; even if volume shrinks and there's a small dip, as long as the trendline isn't broken, stay the course. What's the most critical change? A volume surge accompanied by a trend break—at this point, reduce your position immediately, don't wait.

**Discipline in Short-term Trading**

If you've bought in and three days pass without any reaction, consider selling. Conversely, if the price starts to decline after your purchase and losses reach 5%, you must cut your losses—don't deceive yourself. This isn't cowardice; it's protecting your capital.

**Opportunities in Oversold Rebounds**

If a coin drops 50% from its high and continues falling for 8 days, such extreme oversold conditions often signal a potential rebound. While it doesn't guarantee an immediate reversal, the risk-reward ratio improves, and you can consider gradually adding to your position.

**Trading Art of Leading Coins**

Leading coins tend to rise the most fiercely and have the strongest resilience. Don't be fooled by smaller declines into bottom-fishing on coins with mediocre performance, nor abandon them just because they haven't risen much. The essence of leading coins is to sell at higher prices than your purchase price. High-position entries and exits—this is the way to profit.

**Trend Takes Priority Over Price**

Trade in accordance with the trend. The best entry point isn't necessarily the cheapest but the one that aligns most with the current trend. During a market downturn, don't try to guess the bottom; avoid weak-performing coins. The trend is the most honest indicator—it won't deceive you.

**Importance of Mindset and System**

Making money once or twice is easy; consistent, long-term profits are the real challenge. Don't get carried away by short-term gains; review each trade carefully and ask yourself whether it was luck or skill. The true solution lies in developing a trading system you can follow long-term. Capital preservation always comes first; profits come after safeguarding your principal. Trading isn't about order frequency but about the success rate per trade—these may seem contradictory, but the difference in results is huge.

**Holding Cash Is Also a Strategy**

Don't force trades if you're not confident enough; holding cash is also a strategy, even an advanced one. Learning to wait outside the market sometimes makes more money than daily trading.