A Feng does not recommend everyone to touch small cryptocurrencies here for a very simple reason: you cannot control it, and I can't either. Playing with small cryptocurrencies is purely gambling; everyone knows that you lose ten out of ten. So don’t touch them.
1. Most small cryptocurrencies in the crypto world are just for scamming; they can drop to zero directly, and those that drop more than 99% and have small market caps, which you haven’t heard of, should not be played with. Stick to mainstream cryptocurrencies.
2. Don’t have overly high expectations.
The era of tenfold or hundredfold returns in the crypto world is over. Now, major institutions and elites have entered the market, and the big dividends are gone. Achieving a doubling of your investment is already quite good; if beginners can avoid losses, they have beaten over 90% of people.
3. Don’t put money in unknown wallets.
If you have large funds, it is advisable to keep them in a wallet because exchanges also carry risks. If it's a small wallet, there will also be risks of running away.
4. Don’t play ultra-short-term trading.
The fluctuations in the crypto world are huge; it’s common for Bitcoin to drop 20% in a day, and altcoins can get halved directly. It’s hard to control short-term trading, so hold onto the cryptocurrencies you have.
5. Set stop-loss and take-profit levels.
Set goals for yourself. If it drops to a certain level, execute decisively and exit. If it rises to a certain level, sell decisively and don’t worry about how much it rises afterward. Many people lose in a bull market because they don’t take profits in time.
6. Don’t bring all your funds into the crypto world.
The risks in the crypto world are too high, and there are risks in both entering and exiting. It is advisable to use your spare cash and small amounts to practice in the crypto world first.
7. Keep learning continuously.
A person cannot earn money beyond their understanding. Even if you earn a lot at the beginning, if your understanding doesn’t catch up, you will quickly lose it back and might even suffer heavy losses. You must keep learning and improve your understanding.
8. Find an experienced and reliable teacher.
There are many traps in the crypto world; over 99% of people lose money in the crypto space. Find a reliable, experienced teacher from whom you can learn knowledge. Even if you don’t earn money, at least you can avoid many pitfalls.