Cryptocurrency trading involves high volatility and high risk. When developing strategies, it is essential to consider market characteristics, risk tolerance, and investment goals. Below are some market-validated relatively robust strategy frameworks and precautions for your reference:

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1. Core Principles

1. Risk First
· Control risk per trade within 1%-2% of total funds to avoid emotional all-in bets.
· Store long-term assets in cold wallets; only keep necessary funds on exchanges.
2. Follow Market Trends
· Bull markets favor trend-following; bear markets focus on swing trading or dollar-cost averaging, avoiding fighting the trend.
3. Strategy Discipline
· Pre-define plans (entry, stop-loss, take-profit) to avoid impulsive decisions during trading.

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2. Common Strategy Types

1. Trend Following Strategy

· Logic: Buy during uptrends, hold cash or short during downtrends.
· Tools:
· Moving average systems (e.g., EMA20/EMA50 golden/death crosses).
· Breakouts of trendlines, channel breakouts.
· Suitable Scenarios: Bull markets or strong trending environments, requiring patience in holding positions.

2. Swing Trading

· Logic: Capture medium-term fluctuations (days to weeks), buy at support levels, sell at resistance.
· Tools:
· RSI (overbought/oversold), MACD (divergence signals).
· Fibonacci retracement levels, Bollinger Bands midline support.
· Note: Requires frequent monitoring and strong psychological resilience.

3. Dollar-Cost Averaging (Long-term)

· Logic: Ignore short-term volatility, regularly buy quality assets (e.g., BTC, ETH).
· Methods:
· Invest a fixed amount at regular intervals each month.
· Increase DCA during bear markets, slow down or partially take profits in bull markets.
· Suitable for: Non-full-time traders, long-term bullish outlook on crypto markets.

4. Arbitrage Strategies

· Logic: Profit from market price differences, relatively low risk.
· Types:
· Exchange arbitrage (same asset across different exchanges).
· Futures and spot arbitrage (price discrepancies).
· Requirements: Large capital, high platform and operational speed.

5. Event-Driven Strategies

· Logic: Strategically position ahead of major events (e.g., halving, mainnet upgrades, project announcements).
· Risks: News can change rapidly, prone to "buy the rumor, sell the fact."

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3. Risk Management Tools

1. Always set a Stop-Loss
· Technical stop-loss: Exit when breaking key support levels (e.g., previous lows).
· Trailing stop-loss: Adjust stop-loss upward with rising prices to protect profits.
2. Position Management
· Pyramid adding: Add to winning positions gradually, avoid increasing during losses.
· Diversify holdings: Main positions in BTC/ETH, smaller positions in altcoins.
3. Emotional Monitoring
· Avoid FOMO and panic selling; consider automated trading to reduce human emotion.

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4. Practical Tips

1. Keep Learning
· Monitor on-chain data (Glassnode), capital flows, whale address movements.
· Learn technical analysis basics but avoid over-reliance on indicators.
2. Simulate Testing
· Test new strategies on demo accounts or with small capital for 1-3 months to validate effectiveness.
3. Beware of Market Traps
· Avoid high-leverage contracts (recommend no more than 3x for beginners).
· Be cautious with meme coins and Ponzi schemes; 99% end in zero.
4. Dynamic Adjustment
· Adapt strategies in response to market cycles (e.g., bull to bear transition).

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5. Recommended Resources

· Data Platforms: TradingView (charts), CoinGlass (long/short data), Messari (fundamentals).
· Information Channels: CoinTelegraph, Star Daily, official project Twitter accounts.
· Books: "The Blockchain Revolution," "Crypto Trader’s Handbook."

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Final Reminder: Cryptocurrency markets operate 24/7 with extreme volatility, and there is no "Holy Grail" strategy. Start with small capital, gradually gain experience, and avoid borrowing or investing funds that affect your life. Rationally manage profits and losses to ensure long-term survival in this market.