Trading cryptocurrencies is not as simple as you might think; it's not just about buying low and selling high. A qualified investor needs to have economic knowledge, pay attention to news dynamics, understand national policies, be concerned about international situations, and conduct in-depth research on the fundamentals and technical aspects of virtual currencies. Additionally, one must constantly fight against their fears and greed, possess strong psychological resilience, and endure significant market fluctuations. It can be said that those who survive in the cryptocurrency market are almost all resilient, able to resist temptation, and have undergone trials.
Three Major Principles of Capitalizing:
Principle One: Strictly control your position at 50% when building your position; this allows for both defense and offense. Never operate with a full position at any time, because if the market crashes, a full position will be impossible to save.
Principle Two: When the price of the cryptocurrency you invested in rises to 2-3 times, you should first sell half to recoup your investment. After that, you can use the remaining profits to negotiate with the market makers and gradually exit when the expected price is reached. Retaining 10% of your base position can help avoid missing out on sudden surges triggered by strong market makers.
Principle Three: When the market goes crazy and everyone rushes to buy, you should sell your chips in phases and batches. Do not be misled by the numbers in your account; only cash that has been converted truly belongs to you; the numbers in the account are merely figures.
Three Major Secrets of Cryptocurrency Trading:
Secret One: For small and irregular cryptocurrency trading websites, do not casually invest large amounts of money to avoid the website disappearing suddenly. If you want to participate, choose a legitimate large platform.
Secret Two: There are many virtual currencies recently crowdfunded; please carefully discern them. Not all projects are worth investing in, and many carry risks. Consider carefully before investing, and do not rely on luck.
Secret Three: The current market is sluggish, and the overall trend is cooling down. Short-term operations should focus on wait-and-see, entering the market precisely. For long-term investments, consider high-quality virtual currencies ranked among the top 20 globally, and build your position in batches at low prices.
20.
Enter the market and manage risks and funds well. Timely replenish your position or cut losses during market fluctuations, which is more conducive to profitability. If you fail to act in time, you can still minimize losses. The purpose of trading cryptocurrencies is to make money, so be well-prepared to avoid unnecessary losses.
Finally, do not blindly follow the crowd.
Many beginners tend to sell easily under the influence of the crowd or others' suggestions when they start trading cryptocurrencies, which is often the most foolish approach. Because many times, these people either have no assets or are misleading beginners, creating panic and enticing you to sell at a low price. Once you sell, they will take the opportunity to buy at a low price. Therefore, when trading cryptocurrencies, the opinions of others can only serve as a reference; the key is to rely on your own judgment.