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The stage of formal financialization in the cryptocurrency market
Indeed, the cryptocurrency market has moved past a period of explosive growth and is now gradually entering a stage of formal financialization. This means the market will become more regulated, oversight will be stricter, and competition among capital institutions will become fiercer. At this stage, investors need to choose investment projects more cautiously, avoiding blind following or pursuing unrealistic high returns.
Risks of IPOs in the primary market
There is indeed potential for small investments to yield large returns in IPOs in the primary market, but it also comes with extremely high risks. Due to the presence of numerous air projects and scams in the market, investors need to carefully discern and avoid falling into traps. Furthermore, even if a project seems promising, it is essential to exit at the right time, as market conditions are unpredictable and the risk of projects going to zero always exists.
The high-risk nature of contract trading
Contract trading is a high-leverage, high-risk trading method. Although there is a possibility of huge profits, there is also the risk of significant losses. Therefore, investors need to be particularly cautious when engaging in contract trading, reasonably control their positions and leverage ratios, and avoid suffering major losses due to impulsive actions.
The essence of trading cryptocurrencies lies in rolling positions
The essence of cryptocurrency trading you mentioned lies in rolling positions rather than how much profit one single trade makes, which makes a lot of sense. In the cryptocurrency market, price fluctuations are enormous, and investors need to respond flexibly, reducing risks and obtaining stable returns through rolling positions. Of course, this requires investors to have high market analysis skills and risk control capabilities.
Avoid blindly following trends
When a certain cryptocurrency is being wildly speculated on in the market, it often means that the cryptocurrency is already at a high level, posing significant risks. At this time, investors need to remain calm and avoid blindly following trends. If they already hold the cryptocurrency, they may consider exiting at an appropriate time; if they do not hold it yet, it is best not to enter easily to avoid becoming the bag holder.
Maintain a stable investment mindset
Trading cryptocurrencies is like riding a roller coaster; the risks are indeed significant. Therefore, investors need to maintain a stable investment mindset and avoid borrowing money to trade cryptocurrencies or risking essential living funds. Reasonable capital allocation and risk control strategies are key to long-term stable investments.
In summary, the cryptocurrency market has entered a more mature and complex stage. Investors need to be more cautious in selecting investment projects, controlling risks, and maintaining a good investment mindset. Only in this way can they remain invincible in the market and achieve stable returns.
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