In cryptocurrency trading, the choice of strategy often determines your profit ceiling. Today, let's discuss some approaches used by experienced traders.



**First, the most classic — trend following**. The essence of this method is "let profitable trades run as much as possible, and quickly cut losses on losing trades." When major coins like Bitcoin show clear signals through technical analysis (such as moving average bullish alignment, MACD crossing above the zero line), open a position in the direction of the trend, then use a trailing stop to follow the trade. When the trend reverses, exit the position.

**Next is support and resistance trading**. This is easy to understand — the market always stalls at certain price levels (previous highs, lows, or dense trading zones). When the price approaches support levels, consider going long; near resistance levels, look for short opportunities. But just looking at the position isn't enough; you need to confirm these levels with candlestick patterns, volume signals, and other indicators to verify their validity.

**Breakout trading is also worth paying attention to**. A volume surge after consolidation often signals a new trend is beginning. However, many people fall into the "false breakout" trap. A safer approach is to wait until the price breaks through a key level, then retests that level and stabilizes before entering.

**For advanced strategies, grid trading combined with trend filtering is particularly practical**. Pure grid trading involves mechanically buying low and selling high within a preset range, but it can be tough during a one-sided downtrend — prone to repeated stop-outs. An improved approach is to add filter conditions, such as only activating a bullish grid when the weekly EMA50 is above the EMA200, which helps avoid constantly fighting the trend in a bear market.

**Finally, a note on funding rate arbitrage**. Perpetual contracts use the funding rate mechanism to balance long and short positions. There are significant arbitrage opportunities here, and those who understand this well can exploit it effectively.
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GovernancePretendervip
· 10h ago
The trend-following approach is overused; the key is to maintain a good mindset and avoid liquidation. Support and resistance levels keep being tested repeatedly. Are they really effective? Fake breakouts have tricked me several times. Now I’ve stopped trading breakouts altogether. Grid trading sounds simple, but in reality, it’s still easy to get caught. Funding rate arbitrage? I haven’t really mastered this area. Has anyone made a profit from it?
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FlippedSignalvip
· 10h ago
Trend following sounds simple, but in practice, it requires a ruthless and decisive approach; otherwise, you'll lose everything with just one bad trade.
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ReverseTrendSistervip
· 10h ago
Trend following makes sense, but how many people can actually execute stop-loss? I myself find it easy to understand but hard to practice. I often hesitate to cut losses when I see the position dropping.
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WhaleWatchervip
· 10h ago
Trend following is indeed classic, but the real key to making money is that old saying—being alive is more important than anything else, and the ability to execute stop-losses is the dividing line.
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