The nine principles of the cryptocurrency world, understanding them can save you three years of detours!!!
1. Don't easily let go of low-priced chips; stay firm in your beliefs to prevent market manipulation by whales;
2. Chasing highs and selling lows, and using all funds to enter and exit is always a taboo. When the big trend is positive, accumulating in batches during dips is less risky, has lower costs, and greater profits than chasing highs;
3. Allocate profits reasonably to maximize fund release, instead of continually increasing positions and adding funds;
4. Take profits on sharp increases, hold during sharp decreases; maintain a positive mindset at all times—avoid speculation, restlessness, greed, fear, and don't engage in unprepared battles;
5. The low-priced coins from earlier ambushes or private placements rely on experience and bets from whales on the future of the coin, whereas the later secondary market games depend on technical analysis and news to follow the whales. Don’t lose sight of this distinction, or it could lead to chaos.
6. Establishing positions and unloading should be done in layers and stages, gradually widening price segments to effectively control the risk and profit ratio;
7. Familiarize yourself with the correlation effect; observe the market trends while monitoring the movements of other coins. Each coin does not exist in isolation in the market; seemingly unrelated, they are intricately connected. Understand the correlation effect and make full use of consulting tools and apps;
8. Reasonable allocation of holdings; ensure that the configuration of hot coins and value coins is rational, paying attention to the ratio of pressure resistance to profit intake. Being too conservative may lead to missed opportunities, while being too aggressive may lead to high-risk situations! The key feature of value coins is stability, while hot coins are characterized by extreme volatility, which can either lead to a meteoric rise or a complete collapse.
9. Investing spare cash is fundamental; having coins in the market, oil in the account, and money in the pocket is the safest and most reassuring standard configuration. Avoid all-in bets; controlling risk and reasonably allocating funds are key to determining your mindset and success.