Many investors know the benefits of cryptocurrency investment and want to invest their own money in it to make a fortune. However, any financial market is not so easy to operate. If you want to make money, you must lay a good foundation in the cryptocurrency circle, especially for some novice investors. Let's take a look at some basic knowledge that you must know to get started in the cryptocurrency circle:
1. Investing in the cryptocurrency circle is not as simple and easy as everyone imagines. It still requires more time and energy to study. Lao Li believes that investment is a relatively brain-intensive thing, no matter what kind of currency you are dealing with.
Cryptocurrency investment emphasizes technical analysis: Cryptocurrency technical analysis is a method of predicting price changes and future market trends by studying past market behaviors. Technical analysis includes hundreds of technical indicators and trading tools. It is difficult for traders to use all trading tools for trading. They can only master them flexibly according to the actual situation. No method can always be successful, and different investors can have different interpretations of the same method. Therefore, investors cannot mechanically apply a certain technical indicator. The key is to cultivate their own model of market views.
Second, cryptocurrency investment has certain regularities. What beginners need to do is to understand and master these regularities and use them to make profits. Therefore, we must look for such regularities in our daily cryptocurrency trading life. Jiang Yi also summarized two rules of cryptocurrency trading for everyone:
1. Trends and periodicity. In a certain period of time, prices have certain structural trends, such as long-term trends, medium-term trends, and short-term trends. Trends in different time structures will influence and restrict each other. In cryptocurrency trading, due to the different trading cycles chosen by investors, the importance of trends in different time structures to different investors is also different.
2. Market psychological characteristics. The essence of price movement lies in the changes in the strength of both long and short parties. Psychological analysis is based on the repetition of human behavior patterns and seeks the repetition of psychological changes. Modern investment psychology research has found that investors' psychological activities have some fixed patterns and will be expressed through price patterns. Therefore, through the study of price patterns, we can capture the laws of investors' psychological activities, thereby deepening our understanding of the essential characteristics and morphological characteristics of the investment market; deepening our understanding of the essential characteristics of investment risks in the investment market; and deepening our understanding of the characteristics of the interactive relationship between the investment market and market investors.
3. I believe everyone knows that cryptocurrency investment has high returns. Relatively speaking, it is also a relatively risky investment method. If you invest the life-saving money for supporting your family, once the money is swallowed up by the market, the consequences are enough to destroy a family. Although the returns of cryptocurrency investment are very high, not all investors can become beneficiaries. Therefore, you must not use your living money to speculate in cryptocurrencies, let alone use the funds we need for life to speculate in cryptocurrencies.
Regarding the allocation ratio of investment funds, I think it can be allocated as follows: 40% of the funds are used for investment; 30% of the funds are used for living expenses; 20% of the funds are used for savings; and 10% of the funds are used for purchasing insurance. However, due to the different actual conditions of each family and the different financial management needs of the family at different times, this ratio can only be used as a reference and can be flexibly and reasonably allocated.
4. When starting to invest in the cryptocurrency circle, the most important thing is the mentality. People who are easily emotional and impulsive are not suitable for cryptocurrency investment. On the contrary, people with a gentle, rational and thoughtful personality are suitable for investment, and can take the ups and downs of the transaction process, that is, losses and profits, with a normal mind. The vast majority of leeks have two very serious problems. One is the lack of necessary basic knowledge; the other is a poor investment mentality. Investing like a student account requires a good mentality, and living a good life requires a good state of mind. Sometimes your mentality determines the success or failure of your investment. Please add the author for communication