Seven basic principles for cryptocurrency investment
1. Keep a calm mind and protect your capital first
In the field of investment, especially in the cryptocurrency circle, it is too much of a test of people's psychological endurance. Everyone must keep a normal mind and don't be too impulsive. For example: when you see a certain coin that has skyrocketed, don't go all in without thinking, it is easy to be trapped, don't chase high easily; some people are immediately terrified when they see the market plummet, sell in a hurry, and finally leave the market at a loss. This is the legendary "birth of leeks"! Coin friends must calmly analyze the situation before making a decision. Always remember that protecting your capital first is the kingly way.
2. Be patient and don't follow blindly
Learn to wait for good digital currencies and good opportunities like a wolf waiting for prey to appear. Don't always be led astray by the public, and think independently. A good hunter must be good at waiting.
3. Rational judgment and selection of value coins
The development of blockchain has now reached the stage of actual application scenarios, so when choosing a token, you must pay attention to whether the token has actual application scenarios, whether it can be truly implemented, or whether it is just a concept of air coin.
4. Find an investment method that suits you
Short-term investment is speculation and is more suitable for those with strong technical analysis capabilities. For long-term investment, although the short-term returns may not be that high, the later returns will still be considerable.
5. Hold
Investing in digital currency, making good asset allocation or choosing a project is not difficult, but it is difficult to hold it. Because there are too many temptations in the currency circle, when the coins you bought are not moving, while other coins are growing wildly, you can easily not bear it and quickly sell the coins in your hands to buy other ones, but you may miss the good opportunity. Holding is the most important point of blockchain.
6. Diversify investment and reduce risks
"Don't put all your eggs in one basket, but don't put them in too many baskets." If you invest your wealth in the same place, it will inevitably cause a corresponding increase in risks. Once you make a mistake, you will definitely suffer heavy losses. But you should also pay attention that if the investment is too dispersed, it will inevitably reduce the profit margin and increase management costs.
7. Reverse operation
Under normal circumstances, when most people are optimistic about the currency market, you should sell; when most people are pessimistic about the currency market, you should buy. This is the only way to get better returns.
