Five unforgettable lessons in the cryptocurrency circle, keep them in mind, and you will benefit a lot:
1. Avoid heavy positions to chase the rise
When the market is optimistic, people always dream of making more money, so they increase their positions. However, the market is always full of variables and never follows personal subjective assumptions. Every crazy rise is like a trap hidden in the flowers, waiting for those who chase high prices to fall into it. Remember, heavy positions to chase the rise are tantamount to taking risks with your hard-earned income, and the result is often that the market will ruthlessly teach you an expensive lesson.
2. Profits need to be locked in time
This principle seems simple, but it is often overlooked. The taboo of cryptocurrency speculation is greed. Always thinking about "rising a little more", the result is often counterproductive, profit taking, and even loss of principal. The wisdom of cryptocurrency speculation to support the family is that once you make a profit, you must withdraw quickly and not be greedy for the last cent of profit. Only by putting profits in your pocket can you gain a firm foothold in the stormy waves of the market.
3. Never hold on to losses
Losses are not terrible, what is terrible is the stubbornness and reluctance in the face of losses. Many people have had this experience: after buying, the market goes in the opposite direction, and they silently say "it will always go back up", but they get deeper and deeper, and finally cut their losses with heartache. This iron rule warns us that when facing losses, we should decisively stop losses and protect the principal as the first priority. The market is ruthless. If you don't stop losses, it will definitely make you lose a lot.
4. Invest with idle money, don't borrow
Coin speculation should be based on idle money, and don't borrow easily to enter the market. Borrowed funds are like the sword of Damocles hanging over your head. Every market fluctuation may cause your anxiety and insomnia, which will affect your judgment and operation. Remember, a stable mentality is the cornerstone of stable income, and the premise of maintaining a mentality is that the funds you invest are what you can easily bear.
5. Stay calm when the market is sluggish
The currency market is volatile, and ups and downs are the norm. As a wise investor, you need to take a long-term view. If you have identified a project, you should not be shaken by short-term fluctuations. Believe firmly in its future potential and do not worry too much about short-term ups and downs. Unless there is a clear signal of peaking, there is no need to easily adjust the operation strategy.Long-term planning and persistence are the key to accumulating wealth.