In the cryptocurrency circle, most investors are in a state of loss. The main reasons can be attributed to the following three points:
Choosing the wrong currency
Although altcoins still have some potential for growth in the current bull market, most currencies do not have the motivation to continue to rise. Only a few currencies can really achieve good performance. If you do not have a deep understanding of the overall development trend of the blockchain industry and lack sufficient cognition, you can only choose those currencies with lagging information and lack of prospects.
Even if you are lucky enough to buy a currency with better performance in some cases, due to the lack of in-depth understanding of the currency, the investment proportion is often small, and the overall funds are still mostly in a state of loss.
The timing of buying is not right
Choosing the wrong currency and lack of understanding of the fundamentals can at least increase the probability of winning and reduce the risk of loss through technical analysis.
When you are interested in a currency and see its good performance, investors should also use technical chart analysis to determine whether it is the right time to enter the market, rather than blindly chasing the rise.
Through market trend and disk analysis, you can avoid blindly following the trend at high levels and reduce losses caused by wrong buying timing.
Not able to sell properly
Even if they are lucky enough to invest in a currency with excellent performance, many investors often ignore the timing of selling. Either they are eager to sell when they make a little profit, or they insist on holding on when the market has peaked, missing the best time to sell.
Even if the market gives opportunities, if you don’t have enough skills and judgment to grasp them, you will eventually miss the opportunity to make a profit.
Successful investment requires not only good selection and buying timing, but also the ability to stop profit and stop loss at the right time.