Experiences I learned after many years of struggling in the#cryptomarket. Maybe it will help you in your journey to conquer the waves.
#first. Capital management is the most important.
After ups and downs, I realized that no matter how good#researchand analysis skills are, they are not as important as capital management.
The financial market always has potential risks, nothing is 100% certain, especially in a volatile market like crypto. A seemingly immortal empire can still collapse overnight. Look at the examples Luna, 3AC, FTX.
So have a capital allocation strategy for yourself. I usually divide it into 3 bags:
Safebag: accounts for the majority, for $BTC, $ETH and some topcoins.
Moonbag: for lowcap projects, large pump potential in the long term.
Tradebag: used to trade "sports and arts" back and forth in the short term.
In addition, I always keep 10-20% stablecoins both in downtrend and uptrend in case the market dumps to unexpected areas. Because no one knows where is the bottom and where is the top :D.
#2. Learn to research projects yourself.
Agree that you can listen to initial betting information from KOLs and the community. But you always need to research the project again.
This will help you understand the project, know what you are investing in, and show responsibility for your money. It also helps you determine profit expectations and hold firmly. If you don't understand the project, just a few small fuds will turn you into a paperhand immediately.
![](https://public.bnbstatic.com/image/pgc/202303/46db654737d31ad286ab61c5e96a8d59.jpg)
If you can't answer these 3 questions, it's best not to deposit money:
(1) What are you investing in?
(2) Investment time frame?
(3) Consolidation price zone, take profit zone and stop loss zone if any?
#3. More than 90% of coins will stay at the bottom forever.
After each downtrend season, more than 90% of old coins will stay at the bottom forever. Only $BTC $ETH and some topcoins increased above the old peak. If you don't have the knowledge, just buy $BTC $ETH and you still have a chance to return home.
#4. Trend is friend.
Each uptrend season, "makers" push new trends to attract cash flow. So if you still keep the old trend coin, it is quite risky. Why is that?
First, understand the nature, trends represent steps of development, each new trend is born marking a historical milestone of the industry. And as the industry grows higher and higher, trends will explode and then enter stable development if they are proven to be valuable.
Trend is something that needs to be new and attractive enough to attract money flowing in. With old trends, users already understand it too much, are they still attractive, or are they just wary? Unless it renews itself, it can make a comeback.
MM are also business people, so pushing the trend is to make money. Meanwhile, the number of new people coming to the peak of the old trend is countless, is it easy for MM to pump you back out of stock? Instead, follow and push new trends, creating new projects much faster and stronger.
![](https://public.bnbstatic.com/image/pgc/202303/305f8e749c973d18d92fd186820ae0f1.jpg)
So try to spend a lot of time observing the development of the market and grasping the trends.
Trend is friend!. Don't ignore a trend just because you think it's unreasonable, in this market which is already full of crazy things, the important thing is pamp your bags.
#5. The nature of the financial market is a zero-sum money game.
The nature of the financial market is that the money game operates based on supply and demand and is controlled by greed and fear. Remember that preserving capital is more important than profit. When you have a profit, you should find a profit-taking point gradually to preserve your capital first.
Remember when someone takes a $1,000 profit, somewhere in the market there will be a $1,000 loss. Don't be blinded by technology or idolize someone and stay at the top forever. As long as there is capital, there is still opportunity. In the uptrend market, there is no shortage of xnxx bets.
#6. Stay away from leverage.
Stay away from margin long short if you are not a professional investor. It will turn you from an investor into a gambler and wipe out all your profits and capital. The "big deaths" of 3AC and FTX also come from leverage.
#7. Grasping macro is essential.
The crypto market is part of the world financial market. Therefore, understanding macroeconomics and monetary policy is necessary to make the right decisions with your investments.
Currently, the most influential cash flow regulator comes from the FED. If you can't do much macro analysis, you at least need to understand the FED's policies.
#8. And finally, money that hasn't come out yet, hasn't returned to the bank, isn't your money yet!
That's exactly right, when you take profits out of stablecoins, there are still risks lurking.
The first risk is that the stablecoin loses peg, you probably still remember UST, its current price is about $0.03 divided about 33 times the price it has to "stable" which is $1. The second risk comes from your itchy hands, seeing the pump and dump waves and having money ready but refusing to sit still and throwing it in, the status changes from safe to risky.
![](https://public.bnbstatic.com/image/pgc/202303/8cd68c4e0058287d778601e6275bbaa5.jpg)
Hopefully this article will help someone - those who are new to this seemingly rosy market.
Thank you for reading, if you find it useful, please share the article ❤️. And don't forget to follow me.
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