The cryptocurrency world is full of various investment theories and strategies, which can make people confused about which to choose. However, there are some common sense in the cryptocurrency world that every investor must firmly grasp!
1. Understand the logic of market ups and downs
Before deciding to invest in the cryptocurrency market, first understand the logic of the rise and fall of the cryptocurrency market. Remember that there is no rise without reason, and there is no fall without reason.
The rise and fall of the cryptocurrency market is by no means as complicated as those who focus on finding reasons after the event say. In the final analysis, short-term rise and fall are the result of market makers manipulating the market, which never needs reasons and cannot be predicted.
So what is the long-term growth? To put it bluntly, cycles. Why do cycles exist? Because of the herd effect caused by human nature, the market swings between optimism and pessimism, forming cycles.
So patience becomes the key to victory.
2. How to invest in the cryptocurrency world
Value investment, bears buy and bulls sell.
Buffett said it well, when others are fearful, I am greedy; when others are greedy, I am fearful. This is the concept of value investing. (Unfortunately, for most people, when others are fearful, I am more fearful.)
Applying it to the cryptocurrency world is actually very simple. Find high-quality and cheap value coins and buy them at a reasonable price. Of course, this opportunity is usually a bear market. In a bull market, even the best targets are full of bubbles.
Of course, this process goes against human nature. Why? Because people are in the crowd. When 99% of people think there is no bull market, most people will follow suit. What to do? Improve investment level.
3. Overcome the inner demons and reject fear and greed
The reason for fear and greed is that the information received is incomplete and there is no bottom line on the industry.
So I always say, how to get access to correct and high-quality information? Join a circle. Of course, there are many low-quality circles on the market, so be careful to identify them.
The prerequisite for hoarding coins with peace of mind and living a normal life is to have a sufficient and correct understanding and judgment of the cryptocurrency world.
After understanding, you will know clearly what will happen in the future. Panic will not exist and greed will be impossible.
4. Discipline of Cryptocurrency Investment
1. Buy and hold until the bull market starts.
2. Never change positions, either empty or full positions.
3. Build positions in batches and diversify investments.
4. Attitude comes first, and never get entangled.
5. Be cautious and never go for the easy way.
