Cryptocurrency trading is not as simple as you might think; it's not just about buying low and selling high. A qualified investor needs to have economic knowledge, keep up with news trends, understand national policies, be aware of international situations, and deeply research the fundamentals and technical aspects of virtual currencies. Moreover, one must constantly battle their fears and greed, possessing a strong psychological resilience to withstand significant market fluctuations. It can be said that those who survive in the cryptocurrency market are almost all resilient, resisting temptation, and have undergone trials.
Three Major Principles of Wealth Mining:
Principle One: Strictly control your position at 50% when building your portfolio. This allows both defense and offense. Never operate with a full position, as a significant market drop will leave you unable to save yourself.
Principle Two: When the price of the cryptocurrency you are investing in rises by 2-3 times, you should sell half to recoup your initial investment. Afterwards, you can use the remaining profits to negotiate with market makers and gradually exit when the expected price is reached. Keeping 10% of your initial position can help you avoid missing out on a sudden surge triggered by strong market makers.
Principle Three: When the market is crazy and everyone is chasing prices, you should sell your holdings in stages and batches. Do not be deceived by the numbers in your account; only cash funds truly belong to you; the account balance is just a number.
Three Major Secrets of Cryptocurrency Trading:
Secret One: Do not casually invest large amounts of money in small, unregulated cryptocurrency websites to avoid the risk of sudden disappearance. If you want to participate, choose reputable large platforms.
Secret Two: There are many crowdfunding virtual currencies recently; please carefully discern. Not all projects are worth investing in, and many carry risks. Consider carefully before investing and do not rely on luck.
Secret Three: The current market is sluggish, and the overall trend is cooling down. Short-term operations should mainly observe and enter the market precisely. For long-term investments, consider high-quality virtual currencies ranked among the top 20 globally, accumulating positions at lower prices in batches.
of virtual currencies.
Enter the market, manage risks and funds carefully. Timely adjust positions or stop losses during market fluctuations, which is more conducive to profitability. If you fail to act promptly, you can still minimize losses. The goal of cryptocurrency trading is to make money, so be well prepared to avoid unnecessary losses.
Lastly, do not blindly follow the crowd.
Many beginners, when they start trading cryptocurrencies, may easily sell off their holdings due to group influence or others' suggestions, which is often the most foolish act. Because many times, these individuals either do not hold any assets or mislead beginners, creating panic and tempting you to sell at low prices. Once you sell, they will buy at a low price. Therefore, when trading cryptocurrencies, others' opinions can only serve as a reference; the key is to rely on your own judgment.
As the saying goes, in this current market, there are opportunities to strategize!