The cryptocurrency market is booming, and many newcomers are entering the market with the mentality of "getting rich quick", but many people have also suffered big losses here. If you have just entered the cryptocurrency circle, you must remember the following ten points! Avoid being "baptized" by the market and take the first step!
1. Don’t blindly follow the trend, find your own rhythm
There are many so-called "myths" in the cryptocurrency circle, such as a certain coin skyrocketing overnight, a certain project making people make a fortune. Don't blindly follow the trend, find an investment method that suits you. Don't follow others as soon as they say "make a lot of money". The market is ever-changing, so you must have your own judgment.
2. Don’t invest all your money in cryptocurrencies
Many newcomers bet everything they have on the cryptocurrency market. Remember: invest within your means! It is recommended that you only invest what you can afford to lose, and do not use your living expenses or emergency funds to speculate in cryptocurrency.
3. Understand the coins you invest in and learn to do your homework
Before investing, you must understand what coin you are buying. Don’t buy a coin just because it has recently risen rapidly. Understand the background, team, white paper and actual application scenarios of the project to decide whether it is worth investing.
4. Avoid high leverage and stay calm
Leveraged trading looks tempting, but it also has high risks. Newbies should not try high leverage easily, because it will magnify your losses and even lead to a margin call. Invest steadily and accumulate experience slowly.
5. Set stop loss and avoid emotional operations
The market is volatile, and prices can rise and fall very quickly. Setting a reasonable stop loss point can help you avoid big losses and avoid making wrong decisions due to emotions. Remember: stop loss is a means of protecting the principal, don't ignore it.
6. Watch more and do less, don’t trade too frequently
Many novices like to trade frequently, thinking that "short-term speculation" can make more money. But in fact, this method is easily affected by market fluctuations and leads to losses. Be an observer, learn more, do less operations, and stay calm.
7. Beware of scams and stay away from unknown projects
The cryptocurrency world is full of traps, including air coins, Ponzi schemes, and high-risk ICOs. Don’t easily believe the promise of “guaranteed profit without loss”, especially those projects with excessively high returns and opaque operations. Stay alert and choose well-known and reliable trading platforms.
8. Diversify your investments to reduce risk
Don't put all your eggs in one basket. Diversified investments can effectively reduce the risk of a single project crashing. You can invest in mainstream coins, such as Bitcoin and Ethereum, or try some potential altcoins, but avoid investing in a single coin.
9. Long-term holding is more reliable, avoid short-term greed
Many people get anxious when they see short-term fluctuations in the price of coins, and rush to sell or chase the rise. In fact, long-term holding of projects with solid fundamentals is more reliable than short-term speculation. Don't overreact to short-term fluctuations, be patient.
10. Learn to manage your mentality and don’t be too greedy
The price of the cryptocurrency market fluctuates greatly, and profits and losses can occur quickly. In the market, a calm mindset is particularly important. Don't be overly greedy because of a temporary profit, and don't be discouraged by losses. Keeping a calm mindset and operating rationally are the keys to success.
The cryptocurrency world is not short of opportunities, but it is also not short of risks. Newbies must be cautious when entering to avoid pitfalls. Remember the above ten points, take steady steps, and be patient, so that you can reap your own wealth in the cryptocurrency world in the future!