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Someone asked how to consistently make money in crypto trading. Instead of relying on insider tips, it's better to learn how to recognize these few fundamental yet highly effective signals.
A typical example: an investor took 12 years to grow an initial capital into a substantial amount, during which she never engaged in leveraged contracts and rarely watched the charts day and night. Her methodology is quite simple, but each point is based on practical trading experience.
**Clues of Accumulation and Distribution**
One detail can change your judgment: a significant price rally with a slow correction often indicates that the main force is accumulating. Conversely, a weak rebound after a sharp decline usually means funds are withdrawing. In practice, it's common to see a coin surge 50% in one day with retail investors rushing in, but the real opportunity appears when it pulls back 10% and starts sideways trading—that's actually a good time to build a position because the main force has completed their shakeout.
**The Supply and Demand Behind Volume Expansion and Contraction**
Volume contraction at high levels is a dangerous signal and more concerning than volume expansion. Volume expansion indicates disagreement among participants and that there are buyers ready to take over, but volume contraction means no one is willing to step in anymore. This pattern is often seen during market transitions: a mainstream coin continues to fluctuate with increasing volume at the top, only to surge again; another coin, after volume dries up and sideways trading at the top, may crash shortly after. The same logic applies at the bottom—an initial volume spike might be a false alarm, but consecutive volume increases suggest funds are quietly positioning.
**Trading Volume as a More Honest Indicator than Complex Metrics**
Instead of studying various technical indicators, learn to interpret the market's "emotion." Trading volume best reflects the true intentions of participants and doesn't deceive. When prices rise but volume shrinks, the rally is likely to lack momentum; the opposite is also true. This observation method may seem simple, but it requires long-term market experience to apply effectively.
In short, the secret to survival is: don't chase overnight riches, avoid tools that exceed your risk tolerance, and spend time understanding the market rhythm. Over many years, this approach has proven to be more effective at building wealth than frequent trading.