Recurring epidemics, economic downturn, bosses having difficulties, employees being laid off, young people lying down, middle-aged people struggling to hold on, real estate crashes, stock market crashes... After 2019, the world has officially entered a vibration mode, and you never know where the next shock will be, but the memory of the leeks will eventually stay in yesterday.
Events such as the Three Arrows, LUNA, and FTX, while refreshing the views of the retail investors, also gave retail investors a slap in the face. Facing the future, who is not panicking and confused? Of course, don’t think that you can completely avoid pitfalls by reading this article. The instructions for use of Liuwei Dihuang Pills do not have this effect. What I am going to say next is what I have seen, heard, and experienced. What must be recognized is that there are often more pitfalls in this world than you can see. If you are not careful, you may never be able to go back to your ordinary life. Therefore, if my words are of some help to you, please feel free to forward and spread them.
At the same time, please believe that this article does not have any malicious intent, nor does it have the purpose of defaming any project or track and making a profit. I cannot guarantee that my views are completely correct. After all, I am just an amateur. If you have different views, you are welcome to communicate. In the Internet age, it should not be difficult to find me. I do not recommend full-time cryptocurrency trading. The risk is too high and uncontrollable. It is more stable to walk on two legs.
1. Invest your spare money and avoid leverage
As early as 2015, many people around started to cash out credit cards, P2P loans, and car mortgages. Different from the chicken soup advocated by the currency circle, these people, without exception, left their positions at zero, and even worse, their families were ruined. I have to admit that God will choose some people to take care of, but why should it be you?
Spare money, that is, money that does not affect your life, is used to store coins. The significance of this is to stabilize the basic foundation of life, so that even if it returns to zero, you can still live like a human being; secondly, to stabilize your mentality. If you encounter a bear market and the price drops to the point where you doubt your life, especially if you are a novice, you will definitely choose to sell your losses to pay off your debts. As a result, your debts will increase a lot, and you will lose a lot in the coin market. On the contrary, it is different with spare money.
If you deleverage contracts on the basis of borrowing, then your risk is no less than that of a war. Compared with other financial markets, the volatility of the cryptocurrency market is relatively high, and there are market manipulations and malicious market manipulation. Such operations will definitely bring you risks beyond your imagination.
2. Keep the principal, mainstream is king
I believe that after the LUNA, Three Arrows, and FTX incidents, retail investors' enthusiasm for copycats will decline. In my opinion, any coin has the risk of returning to zero. No matter how glamorous it looks on the surface or how powerful the capital is, you should run away from it, especially centralized projects. Of course, if you are still immersed in the idea of betting on local dogs and betting a hundred times, give up as soon as possible. A friend in the circle took 100,000 yuan for testing. After more than half a year, there is still 5k left... He said that if you don't run in a bear market, you are lucky. If you still want to make a profit, it is a dream within a dream, a dream within a dream.
Holding mainstream can minimize the risk of running away. In addition, the basic market is there. After practical testing, there are certain believers and followers, so it is not easy to have LUNA incidents. Some people say that some coins are so expensive that they can't afford them. How about buying half? There is no regulation in the currency circle that you have to buy one by one. In theory, as long as there is support, it can be divided into countless. Here I emphasize again that in order to ensure the safety of the principal, most of the coins should be kept in the wallet. No matter what exchange, just put a small amount.
3. Avoid high-interest scams
Try to stay away from projects with excessively high profits, such as Defi and liquidity mining. The interest rate is too high, and there is no difference in essence from P2P. Coin = money. When the economic situation is so cold and the currency market is so sad, the purpose of high-interest projects is to get your principal. Even if the purpose is not here, once a crisis occurs, it is only a matter of time to run away. You want his interest, he wants your principal, this is the risk of such projects. Strictly speaking, this kind of game is actually P2P on the chain. Once its profit is lower than the interest to be paid, it can only use the principal to fill the hole. Does it look like the Ponzi scheme of the past? Don't think that the currency circle is to pick up money. There is no good thing of picking up money in any market. Sobriety is more important than anything else.
4. Stock up in a bear market and win in a bull market
Hoarding coins, look at the distance between hoarding and hoarding, the gap is more than ten thousand miles. Hoard coins in a bear market, and make profits in a bull market. If you do it, you will earn it. Don't look, take action, and you will have the next bull market. Many people who play short-term and contract trading have always been dissatisfied, thinking that hoarding coins is a stupid and stupid method. There is no need to question it. The moves don't look so fancy, but the effect is good, and it's OK to make money. Hold on, and you will definitely surpass most people in the coin circle. Finally, don't be in debt, don't buy a house unless necessary, just hoard!
