Trading in the crypto space is essentially about making money by following the market rhythm. The trend-following strategy is based on this logic—identify the correct direction, stick firmly to it, and avoid unnecessary fuss. Simply put, when the daily online price breaks above the MA20 moving average, it indicates a bullish trend, so focus on going long; conversely, if it breaks below, go short. Place stop-loss orders below the previous low, and for take-profit, move the stop-loss upward along with the market to lock in profits.

However, there are many pitfalls. In ranging markets, false breakouts are common, and following them can lead to losses. Therefore, it’s important to check if the trading volume supports the breakout—only significant volume breakthroughs are worth following.

Another technique is grid trading, which requires no judgment on market direction. For example, with BTC, set a price range with a 20% fluctuation above and below, then divide it into 50 grids. Each time the price hits a grid, automatically buy low and sell high. The advantage is that the more volatile the market, the more profit you can make. But beware of sharp one-sided drops or surges; if the price breaks out of the grid range, the grid strategy becomes ineffective.

Using these two strategies together is most effective. During consolidation, grid trading focuses on capturing volatility, while trend following acts as a backup. If the price suddenly breaks out of the grid, switch immediately to trend following to chase the trend. In terms of capital allocation, invest 60% in grid trading and keep 40% as ammunition for trend following. This way, you can achieve stable returns without missing out on major market moves.

XRP and SOL have been quite volatile recently; try this combined approach.