After many years navigating the cryptocurrency market, seasoned investors have summarized a set of effective investment strategies. These iron rules are not only applicable to beginners but also help veterans stay clear-headed in a complex market environment, achieving stable returns. Here are the eight iron rules of seasoned investors in the crypto space:
1. Fund management: Act within your means and diversify risks.
Focus on holding one coin within 100,000: When funds are limited, concentrate on holding a single potential coin and deeply research its fundamentals and technical aspects.
200,000 to 300,000, play with two coins: When funds are slightly more, diversify into two coins to reduce the risk of a single currency.
Within 500,000, three to four coins are enough: As funds increase, hold a maximum of three to four coins to avoid excessive diversification.
No matter how much capital you have, do not hold more than five coins: Regardless of the amount of funds, the number of currencies held should not be excessive to avoid management difficulties.
Concentrate firepower in a bull market, and respond lightly in a bear market: Invest concentrated funds in the most promising coins during a bull market; during poor market conditions, operate lightly to reduce losses and withdraw in time.
2. Trend is king: Follow the market, do not go against the trend.
Watch the news, learn techniques: Understand market dynamics and technical indicators to improve investment success rates.
Declines and rebounds are often traps, and rises and corrections may be pitfalls: Do not blindly try to catch the bottom or chase highs; operate according to the trend.
Do not guess the intentions of the main players: The operations of market leaders are difficult to predict; focus on your own investment strategy.
3. Only act when the market is lively, respond flexibly.
Act when the market is active: When market enthusiasm is high, investor sentiment is positive, making it easier to seize opportunities.
Flexible operation, not rigid: Adjust strategies in a timely manner according to market changes, and do not stick to old patterns.
4. Stop loss and take profit: Protect your capital and lock in profits.
Set fixed stop-loss points: Stop losses in a timely manner to avoid greater losses.
Gradually increase selling prices: When profitable, gradually raise selling prices to ensure profits are not lost.
5. Buy quickly and sell decisively: Make prompt decisions to avoid hesitation.
Buy quickly: Be decisive when discovering opportunities to avoid missing out.
Sell decisively: Sell promptly when reaching expected goals or when the market turns to avoid losses due to greed.
6. Think carefully before increasing your position.
Ask yourself: Before increasing investment, think about whether you are willing to invest new funds in the current situation. If the answer is yes, then consider increasing your position.
7. Focus on long-term, with short-term as a supplement.
Avoid frequent short-term speculation: Short-term trading can easily lead to losing direction and affect mindset.
Follow the trend: Large investments should follow the market trend and hold promising coins for the long term.
8. Do not blindly try to catch the bottom, treat the market rationally.
A large decline does not mean it’s time to bottom fish: A significant market drop does not necessarily mean the bottom has been reached; blindly trying to catch the bottom may lead to further losses.
Few make money in the market: Only a small number of people can truly make money in the market; remain rational and do not blindly follow the crowd.
Final advice
A major bull market is not only a test of market fluctuations but also a test of the investor's mindset. Stay calm, follow the above iron rules to steadily progress through the transitions of bull and bear markets, ultimately achieving wealth growth.
I hope these iron rules can help you avoid detours on your investment path in the crypto space and achieve stable returns. Wishing you successful investments and abundant wealth!