What is the one thing you absolutely cannot do in the crypto space???
The crypto space can definitely make money.
But everyone needs to understand that you can never earn money beyond your understanding. If you only think about getting rich overnight without diving deep into learning and research, you will suffer, and the probability of losing money is 99.9%.
Nothing in this world escapes the 80/20 rule, which is the so-called "8 lose, 1 break even, 1 profit." The financial market, including the crypto space, is the same; 20% of people control 80% of the wealth, and those who can trade crypto profitably are ultimately in the minority, while the majority are just fodder.
In the crypto world, the dreams of getting rich overnight are played out every day, but not many can survive. To stand firm in this market full of desires and traps, you need not only strength but also the wisdom to avoid pitfalls. The following 5 hard truths must be learned early to survive in the long run!
1. Protect your principal to continue the game
The crypto space is full of opportunities, but your principal is your foundation. No matter how good the market conditions are, do not forget to control risks and do not easily go all-in. The market is highly volatile; without principal, you will be completely out, and even when a bull market comes, you can only stare in despair.
2. Don't be greedy; take profits when due
Once you reach your psychological expectations, decisively cash out. Many people end up losing because they think, "just wait a bit longer," which leads to losses and retracements. The crypto space is full of temptations; when making money, know when to take profits; that is the survival skill of experts.
3. Reject following the crowd; make independent judgments
Market sentiments change rapidly; sometimes a piece of news can send crypto prices soaring or crashing. Learn to research and understand projects on your own; do not follow the crowd. Only the coins you truly understand can you hold onto, and you won't easily be washed out during fluctuations.
4. Control your position; invest steadily
Diversifying your capital is always a hard rule; do not put too many eggs in one basket. Risk diversification allows for longevity, so you won't be knocked down by the market with a single misstep. A reasonable position allows you to cope with market ups and downs.
5. Maintain patience; do not be swayed by fluctuations
The crypto space is highly volatile, and short-term emotional swings can be large; never rush to act because of temporary increases or decreases. Find truly valuable coins, hold onto them patiently for the long term, and you will have the opportunity to reap maximum returns. Bear market positioning and bull market harvesting are both good times to test patience!