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; remain firm in your beliefs to prevent market manipulators from colluding to drop prices;
2. Chasing after rising prices and panic selling is always a big taboo. When the overall trend is positive, gradually building positions during declines is less risky, lowers costs, and increases profits more than chasing price rises;
3. Reasonably allocate profits to maximize the release of funds, rather than continuously increasing positions with more capital;
4. When there is a rapid rise, take out your initial investment, and when there is a rapid drop, hold onto your coins. Always maintain a positive mindset: do not speculate, do not be impatient, do not be greedy, do not be fearful, and do not engage in unprepared battles;
5. The low-priced coins from preemptive positions or private placements rely on experience and the speculation of future value. The subsequent secondary market competition relies on technical analysis and news to follow the trends. Do not confuse the two, or you will end up in chaos.
6. When building positions and liquidating, you must do it in layers and stages, gradually widening price levels to effectively control the risk and profit ratio;
7. Be familiar with the correlation effects; observe the market trends while monitoring the movements of other coins. Each coin does not exist in isolation in the market; although it may seem unrelated, they are intricately connected. Understanding these correlations is critical; fully utilize consulting tool apps;
8. Reasonable asset allocation is crucial; the configuration of hot coins and value coins should be balanced, paying attention to their ability to withstand pressure and the profit intake ratio. Being too conservative may lead to missed opportunities, while being too aggressive may pose high risks! The main feature of value coins is stability, while the main feature of hot coins is extreme volatility, which can lead to a meteoric rise or a complete loss.
9. Investing with spare cash is fundamental. Having coins in the market, liquidity in your account, and cash in your pocket is the safest and most reassuring standard. Do not go all-in; understanding risk control and reasonable fund allocation is key to determining your mindset and success.