Many people have suffered investment losses in the past few months, primarily due to the following three reasons:
1. Continuously shorting BTC, resulting in liquidation or severe slippage, leading to heavy losses.
2. Investing all funds into so-called 'junk altcoins', frequently changing positions but repeatedly facing setbacks, with multiple stop-losses causing significant capital shrinkage.
3. Heavily chasing meme coins, especially emerging meme coins, resulting in experiencing several rounds of steep declines of up to 70%.
Warren Buffett once said, "If you are not willing to hold a stock for ten years, then don't hold it for even a day." This statement equally applies to the cryptocurrency market. If there is no firm logic for long-term holding and one participates in the market merely for short-term speculation, the probability of being 'cut' is extremely high.
From a long-term investment perspective, those so-called 'junk altcoins' are far from comparable to mainstream digital currencies like Bitcoin and Ethereum, let alone the leading coins in various sectors. Therefore, these altcoins have almost no investment or trading value, and it is wise to avoid them in the long run. Otherwise, if one misses the bull market, they may lose out on greater investment opportunities.
In summary, when participating in the cryptocurrency market, investors should remain calm and rational, adhering to the principles of long-term investment, and avoid blindly chasing short-term trends and speculative behaviors. Only in this way can one proceed steadily in the market and achieve the preservation and appreciation of assets.
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