Holding Currency Secrets: Smart Investment Strategies in the Crypto World
In the digital age, investing in cryptocurrency has become a new path to wealth for many. Among them, 'holding currency'—that is, long-term accumulation of coins—is the choice of many investors. Today, let's discuss several key points about holding currency to help you invest more smoothly and avoid detours.
Understand Price Increase Patterns
Did you know? Throughout the year, cryptocurrencies often experience two major price increases: one from February to March, and another from November to December. However, in December, due to the Spring Festival, people tend to withdraw cash, which may cause prices to drop. Therefore, the best times to buy coins are usually from September to October and in January.
Understand Halving Cycles
Another pattern in cryptocurrency is the 'halving' that occurs every four years. This is quite important, as prices typically rise after each halving. For example, this happened in 2009, 2012, 2016, and 2020, and we should also pay attention to 2024.
Choose the Right Coins
When investing in cryptocurrency, choosing the right coins is crucial. Opt for coins that have been listed for more than 10 months and have strong fundamentals. Such coins offer more opportunities for profit and lower risks. Never follow trends to buy those weak coins.
Understand the World of Cryptocurrency
Cryptocurrency is like a big family: Bitcoin is the leader, artificial intelligence is the brain, and Ethereum is the capable assistant. The first and second layers are like the spine and ribs, supporting the entire family. Those meme coins are like home decorations—look nice, but you need to recognize their true value.
Grasp Price Increase and Accumulation Cycles
After a significant rise, the market typically adjusts slowly over 2-3 years. During this time, we need to closely monitor the flow of funds, the circulating supply, and the unreleased coins so that we can make wise decisions.
Allocate Funds Wisely and Manage Risks
Don't put all your money in one basket. It may take a long time for prices to rebound, so patience is necessary. Use around 10 different coins to diversify your investments; this way, even if some drop, the overall investment can remain stable.
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