What should a newcomer in the cryptocurrency space pay attention to before choosing to invest regularly? First, choose the right cryptocurrencies.
Regular investment is a medium to long-term investment approach, so one must be cautious when selecting digital currencies. Since it is medium to long-term, one must choose high-quality cryptocurrencies to hold for the long term, such as Bitcoin, Ethereum, EOS, and other top ten cryptocurrencies by market capitalization. Avoid those purely speculative inferior coins.
Second, do not go all in.
Every investment carries risks, so it is crucial to invest within your means. In the volatile cryptocurrency market, this is particularly important. If you have discretionary funds left over after deducting all expenses from your monthly income, then you may consider regular investment; otherwise, it is a gamble with your life. #Bitcoin #cryptocurrency #BitcoinEthereum #BitcoinMarket #btc #btcPerpetualContract #btc
Third, choose quality over quantity.
There is a saying in the investment circle: "Do not put all your eggs in one basket". This can reduce risk to some extent, but if you choose too many cryptocurrencies, it simply means your selection process was not strict enough. Regular investment is essentially investing with a vision, so you should select the best among the good; casting a wide net may not catch any fish.
Fourth, be cautious about cutting losses.
Cutting losses is a major taboo in regular investment. During this period, you must not be influenced by the broader market environment. Maintain a mindset of "happy when it rises, happier when it falls". Of course, you should also set a target for yourself; when you reach that mental point, take action promptly to avoid prolonging the investment period and affecting your mindset.
In summary, as a relatively conservative investment method, regular investment has a positive significance in managing risks. However, regular investment is neither good nor bad; it only depends on whether it suits you, mainly whether you can accept medium to long-term investments or pursue short-term gains.