I remember that in mid-2021, the surge in Dogecoin drove up half of the altcoins, including the familiar shitcoins and pigcoins. At that time, you really bought whatever was popular and whichever was rising. You could get a piece of the pie just by following the trend. Just buy a little and it would double or even several times in a few hours or tens of minutes. At that time, many friends who had just entered the cryptocurrency circle saw crazy increases in price after just buying it casually, as if they saw financial freedom was just around the corner.

The good times didn’t last long. After a short period of time, the national policy was introduced. Many altcoins had no applications at all. They were called “air coins” and were just for making money. As a result, they were almost zero or never recovered. This was undoubtedly a heavy blow to many people who made money from altcoins.

In fact, the reasons why we lose money are nothing more than the following points.

First: chasing ups and downs

Chasing the rise and selling the fall is a mistake that almost every coin circle friend will make. Just like the coin mentioned at the beginning, they will buy the coin that is popular and rising, and they will buy the coin that has a lot of discussions or calls. After buying, they are seriously trapped. When the loss is 10% or 20%, they are reluctant to sell their stocks and firmly hold on to them until the day when they can get out of the trap. When the price continues to fall and the loss is 50% or even higher, they think that this coin is not good and sell their stocks directly with tears, and then repeat the same mistakes again and again.

Second: Short-term thinking is serious

Many of my friends have a serious short-term mindset. In fact, we should look further ahead (except for altcoins and air coins), allocate space reasonably, focus on the long term (there is really no one in the cryptocurrency circle who makes money by short-term trading), and use the medium and short term as a preparation. We should also follow the short-term trend changes that we can see clearly.

Third: Lack of awareness

Many friends do not think before investing. Today, a big V says that this coin is good, so they buy it immediately. Tomorrow, XX rumor says that a certain coin will rise, so they buy it too. As for what is good about this coin or why that coin will rise, they have no idea at all. Others are speculating on coins based on their own cognition, but you are following their cognition. It is impossible not to lose money in this brainless investment method. We can use other people's cognition as a reference when investing, but before that we must establish our own cognition.

Fourth: Too impetuous

They always come to the cryptocurrency circle with the speculative mentality of getting rich overnight, and are not prepared for a sudden loss. When they buy a coin, they hope it will rise immediately, double in two days, or increase tenfold in half a month. If the coin they bought does not rise in half a month, they blame the project party for not managing the market value, for the market maker crashing the market, or for the big V for making inaccurate predictions.

Fifth: No investment plan and investment philosophy

Many friends do not have a standard for their position planning. They always like to follow their feelings or go all in. However, they do not know that going all in on a single currency is a taboo in the currency circle, and it will make them miss many opportunities to receive chips. This intuitive investment method is likely to lose money in unexpected situations. Only by making a corresponding investment plan, such as: how many currencies to buy? The proportion of currency holdings, whether to stop loss or cover the position after buying, whether to reduce the position in batches or continue to hold after making a profit? Only by summarizing a set of investment strategies that suits us can we deal with various situations and remain calm whether it rises or falls.

Summary: To make money in the cryptocurrency circle, you must have your own investment strategy and investment plan. Don't blindly follow the trend. Make a good proportion according to your investment amount. You must hold the top mainstream coins and build positions in batches. Buy small when the price drops slightly and buy large when the price drops sharply. Even if you want to buy altcoins, you must use a small amount of funds to buy them. Even if an unexpected situation occurs, you can still be invincible. #BTC #ETH