Friends who are new to the cryptocurrency world must be careful to avoid these "minefields" and not take unnecessary detours:
1. Choose coins carefully: Most small coins are "scalping machines" that can plummet to nearly zero, with declines of over 99% not being unusual. Those with low market value and no reputation should be avoided; prioritize mainstream coins.
2. Lower expectations: The myth of getting rich quickly in the crypto world is hard to replicate. Nowadays, institutions and elites are entering the market, and the era of exorbitant profits is gone. For beginners, achieving double returns is already quite impressive; if you can avoid losing money, you've already outperformed 90% of new players.
3. Wallet selection: If you have a large amount of funds and want to store them in a wallet, be very cautious in your selection. Small wallets carry high risks of exit scams, and exchanges are not safe either.
4. Give up ultra-short trading: The cryptocurrency market is like a roller coaster; it's common for BTC to drop 20% in a day, and it's not rare for altcoins to be halved. Ultra-short-term trading is extremely difficult, so it's better to hold onto the coins you have steadily.
5. Set profit and loss limits: Define your "exit line"; if the price drops to a preset level, decisively cut losses; if the price rises to your target, firmly take profits. Don't be greedy for further gains; many lose money in bull markets simply because they don't understand the importance of taking profits in a timely manner.
6. Control your entry funds: The cryptocurrency market is extremely risky, and both incoming and outgoing funds carry hidden dangers. Never bet all your assets; use idle funds to test the waters with small amounts and get familiar with the environment first.
7. Keep learning: Knowledge determines the boundary of wealth. Money earned by luck will eventually be lost through skill, or even lead to debt. Continuously learning about the cryptocurrency world and enhancing your understanding will help you establish a foothold in the market.
If you don't know how to select strong coins, then I suggest you follow me.
