Nine Principles of the Cryptocurrency World, Understanding Them Will Save You Three Years of Detours!!!
1. Don't easily let go of low-priced chips, stay firm in your beliefs, and prevent market manipulators from using high-frequency trading to crash the market;
2. Chasing highs and cutting losses, entering and exiting with all funds is always a big taboo. When the trend is positive, accumulate in batches during downturns, which is less risky than chasing highs, has lower costs, and greater profits;
3. Distribute profits reasonably, maximize the release of capital, rather than continuously increasing positions and adding funds;
4. Take profits during sharp rises, hold onto coins during sharp declines, maintain a positive mindset at all times, avoid speculation, impatience, greed, and fear, and don't fight battles without preparation;
5. Low-priced coins positioned in advance or through private placements rely on experience and speculation about the future of the coin. The subsequent secondary market competition relies on technical analysis and news to follow the market trends. Don't get the order wrong, or it will end in a mess.
6. Establishing positions and offloading must be stratified, gradually widening the price range, effectively controlling the risk and profit ratio;
7. Be familiar with the interconnected effects, observe the market trends while monitoring other coins. Each coin in the overall trading market is not isolated; it may seem unrelated, but in reality, everything is intricately connected. Understand the interconnected effects of coins and make full use of consulting tools and apps;
8. Reasonable allocation of assets is crucial. The allocation between popular coins and value coins must be balanced, paying attention to the ratio of pressure resistance and profit intake. Being too conservative may cause you to miss opportunities, while being too aggressive may face high-risk situations! The greatest characteristic of value coins is stability, while the greatest characteristic of popular coins is extreme volatility, which may lead to soaring one moment and crashing to zero the next.
9. Investing with spare money is fundamental. Having coins in the market, oil in the account, and cash in the pocket is the safest and most reassuring standard. Avoid going all-in; mastering risk control and reasonable capital allocation is key to determining your mindset and success or failure.