A must-read for newcomers in the cryptocurrency circle! Keep these points in mind, take fewer detours, and earn more!
When entering the cryptocurrency circle, many novices will fall into pits due to lack of experience. In order to avoid losing money, you must remember the following points firmly, which will definitely help you walk more steadily.
1. Don't ALL IN, diversification is the way to go!
Many novices are impatient and impulsive when they see the price of the currency rise, and directly put all their funds on one currency. This is a taboo! The market is unpredictable, and any currency has the risk of falling. Diversifying investments in different currencies can reduce risks. Even if one loses, others may help you keep your profits.
2. Don't chase high, the bull market will also pull back
When you see the price of the currency soaring, don't blindly chase high! It is normal for the currency circle to rise and fall, and even in the bull market, there will be pullbacks. If you enter the market at a high point, it is likely that you will not wait for a continued rise, but a long-term lock-in after the fall. Patiently wait for the pullback to enter the market more safely.
3. Always set a stop loss!
No matter how optimistic you are about a coin, you must set a stop loss point when buying it. Once the market reverses, timely stop loss can avoid greater losses. Trading without stop loss will eventually make you hold on to losing positions and miss other opportunities.
4. Beware of the "get rich overnight" trap
There are always people in the currency circle who promote the myth of getting rich overnight, especially those small currencies with unknown origins. They attract people with the gimmick of "ten times or a hundred times", but the risk is extremely high, and most people often leave the market with a loss in the end. Don't be confused by "get rich overnight", stay rational, and choose currencies with actual value support.
5. Learn to analyze, don't blindly follow the trend
Many novices like to buy coins according to the advice of "big V" or friends, but this is not a long-term solution. Market changes are changing rapidly, and what others say may not be suitable for you. You must learn to analyze the market yourself, understand technical graphics, market trends, and cultivate your own judgment.
Although the currency circle is full of opportunities, it is also full of traps. Newbies, remember, don't be impatient, learn to diversify your investments, set a good stop loss, stay away from the trap of getting rich quickly, and work hard to improve your analytical skills. Only in this way can you go further and more steadily in this market!