How to Become Stronger in the Cryptocurrency Circle
If you don't have much and want to make a profit in the cryptocurrency circle, there's a simple method that can help you consistently earn more.
As long as you master this method, you can earn an additional 3%-10%.
Below, I will share with you the insights I've gained over the past few years:
1. Don't be greedy; start with one or two cryptocurrencies. There are many options, like stars, with dozens or hundreds of them available. However, as small investors, our energy and money are limited. Don’t think about investing in everything; it’s best to focus on 1-2 cryptocurrencies, or at most 3.
2. When prices are soaring or plummeting, don't act impulsively. When the market is booming, do you feel like the cryptocurrency is going to double? Is your mind only focused on quickly putting in more money? Conversely, during a market crash, do you panic and feel like everything is lost, rushing to sell? In such times, it's easy to make foolish decisions. I suggest that during extreme fluctuations, don't act; calm down and reassess.
3. Don't invest all your money; maintain a stable mindset and avoid going all in. It's best to keep 30%-50% of your money on hand. This way, if the price drops, you can buy more, and if it rises, you can add to your position. If you invest too much, you'll be happy when prices rise but panicked when they fall. A collapse in your mindset can distort your decision-making, so give yourself some room to maneuver.
4. Take your profits and run; don’t be greedy, and accept your losses. Set a target for yourself, such as selling once you've made a 20% profit, regardless of whether it continues to rise. Many people try to squeeze out a little more profit and end up losing everything. Greed is human nature; you need to control it. The same goes for losses—set a stop-loss, such as selling if you lose 10%, and don’t stubbornly hold on. Many trading platforms allow you to set automatic buy and sell orders; set the prices and let the computer do the work instead of relying on your shaky hands to make decisions in the moment.
5. Learn some technical analysis; don’t rely solely on others. Many people in the cryptocurrency circle do not have a financial background; they might be programmers or enthusiasts who want to make some money but know nothing. Instead of listening to others' empty talk, spend a few days learning technical analysis basics, such as reading candlestick charts and moving averages. Having your own knowledge is more valuable than anything else.
6. Take your time; don’t go all in or sell everything at once. Whether buying or selling, don’t do it all at once. For example, if you want to buy 10 bitcoins, spread it over 5 transactions. You can complete it in an hour or over a few days. This way, the risk is lower, and you won't ruin yourself due to a moment of impulse. Steady and gradual progress is the key to longevity.
Bitcoin is most afraid of being swayed by emotions; making decisions with your own mind is the key to making money.
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