In this market, aside from Bitcoin and Ethereum, there are many various altcoins. Whenever the market is good, these altcoins can rise by 50-60% daily, while during the same period, Bitcoin might only increase by around 3-4%. So many people fantasize about whether investing in XX coin could also yield such gains. If leverage is added, can I double my money? In fact, often having such thoughts signifies the beginning of your losses.
Looking at history, although Bitcoin and Ethereum don't have huge gains, their daily volatility is just right for contract trading. Even if you make a mistake in the short term, they will give you a chance to correct your error and decide whether to cut losses. Meanwhile, those altcoins might see a single hourly candlestick with gains of over 10%. If you make a mistake, does that mean all your hard work over half a month will turn to dust?
If a day's loss wipes out half a month's effort, can you still calmly trade at that moment? Would you also increase your leverage and chase after ups and downs because of a single loss? In trading, I feel that large fluctuations make it harder to trade; unless you can enter at a very good position, otherwise, there are countless ways for the market to force you out. Additionally, in trading, it's advisable to focus on just one or two varieties, maintain familiarity with them, and avoid following the trend. Making money from the fluctuations of one or two varieties is enough.
The principle is simple, but it's very difficult to stick to it, so you must maintain a high level of focus!