There is a simple yet efficient trading idea for cryptocurrencies. If executed properly, the profit rate can reach a considerable level. Here, I will break down this method, which might give you some inspiration.

First, from the perspective of market protection. When the market crashes sharply, if the coins in your hands only decline slightly, it often indicates that there is capital supporting the market behind the scenes, preventing it from falling in tandem. In such situations, there's no need to rush to sell; instead, you can hold with confidence because there is a high probability of a rebound in the future.

For beginners, the most practical method is the moving average trading strategy. For short-term trading, focus on the 5-day moving average. If the price stays above the 5-day MA, hold on; once it breaks below, sell. For mid-term traders, look at the 20-day MA, with the same logic—hold when above, exit when below. It sounds simple, but few people can persistently execute it.

Judging the main upward wave is also crucial. If the main upward wave has already formed but there is no obvious volume increase, then decisive buying at this point is often correct. Continue holding during the rally, and if there is a pullback with decreasing volume but the trend remains intact, keep holding. Only consider reducing positions when there is a volume-driven decline that breaks the trend line.

Short-term trading requires a strict time discipline. If after buying, the price shows no response within three days, you should consider selling to avoid freezing your funds. Even more strictly, if the loss reaches 5% after buying, stop-loss must be executed—this is the bottom line for protecting your capital.

Oversold rebound opportunities are also plentiful. If a coin drops 50% from a high and continues to fall for 8 days, it usually indicates it has entered an oversold zone, and a rebound could happen at any time. At this point, consider small follow-up investments and wait for the rebound.

Leading coins are always the key focus. Because the leaders rise the fastest and are also the most resilient during declines. However, buying leading coins requires a proper approach: it’s not about buying when the price drops significantly, nor about abandoning them when they rise sharply. The key is to sell at relatively high levels and avoid building positions at low points—that’s the correct strategy for leading coins.

The core logic of trend trading must also be clarified. The purchase price is not the lowest possible but the most suitable. During a decline, don’t casually bottom-fish; learn to give up on coins that perform poorly continuously. Because the trend is the primary factor determining success or failure.

In terms of mindset, don’t get overexcited after a single profit. Consistent gains are much more valuable than one-time profits. Carefully review each operation, distinguish whether it was luck or skill, which is very important. Ultimately, establish a stable trading system that suits you, so you can achieve sustained profits.

Finally, trading discipline is essential. Never force a trade when you lack sufficient confidence; holding cash is also a strategy. The first priority in trading is capital preservation, then profit. It’s not about trading frequency but about the ultimate success rate. These nine points may seem simple, but very few people can actually do all of them consistently.