Having been in the cryptocurrency space for seven or eight years, not getting wrecked, and still living well, there are reasons for financial freedom. To quickly escape being a 'retail investor' in the crypto world, the following seven points are essential:
1. Adjust your mindset first. Treat trading cryptocurrencies as a game; it doesn't matter whether you win or lose. Only by doing this can you trade comfortably in the crypto market.
2. Use spare money to trade. The funds used for trading cryptocurrencies should be spare money that won't affect your life if lost. Only by using spare money can you be able to take risks and let go easily.
3. Make the most of your time to learn. To trade well, quickly understand practical technical indicators and strategies, practice more, and summarize your experiences.
4. Be cautious in your first trades. Retail investors inherently have less capital, so effectiveness is crucial. In particular, for your first trade, you should prepare carefully, aiming for a successful debut. Start with small positions to gain experience before committing larger amounts. Otherwise, you might enter the market and find your funds locked up or lose money, which can be a significant blow to your confidence.
5. Preserve your principal. Trading with the money you earn will make you feel more relaxed and allow your operations to be more fluid.
6. Develop your own set of methods. To transform from a retail investor to a savvy trader, you must eliminate the mindset of chasing hype and over-investing. Always remember that as long as you don’t chase highs, you can change from a retail investor to a skilled trader. Be good at learning and able to summarize a set of trading skills that suit you through practical operations; this is fundamental to becoming a skilled trader.
7. Only trade strong leading coins and concentrate your funds. When trading cryptocurrencies, focus on the leaders. Diversifying funds not only increases trading costs but also causes you to lose focus and prevents you from accurately analyzing and grasping the market characteristics of each coin!