Suggestions for some newbies who want to invest in the cryptocurrency market!
For ordinary investors, it is best to stay away from the cryptocurrency market temporarily under the current situation, and wait until the market becomes simple and easy to understand, and then consider entering the market when you can easily make a profit. If you really can't help but want to invest, don't touch those unpopular coins in the small but extremely competitive sectors, because from a high probability, these coins may never have a chance to turn around.
In addition, you must be extremely cautious when doing long operations. According to my personal judgment, the market is still in a downward trend, especially for altcoins, which are very manipulable, so don't operate with large positions or use high leverage.
Why give such advice? Today's cryptocurrency market is very different from the past and has become extremely complicated. In the past, if Bitcoin could remain stable, other currencies would basically perform well. However, now Bitcoin fluctuates alone most of the time, while altcoins have been falling almost without stopping.
The reason for this polarization phenomenon is that Bitcoin, as a special reservoir of the US dollar, is unique and has a limited total amount. In contrast, the situation of altcoins is quite different. Single projects often have inflation, such as unlocking, staking and other operations. New coins continue to emerge in the entire altcoin circle, and the competition is fierce. No altcoin can dominate. Just like Dogecoin, in the early stage of the last bull market, there was only it in the meme sector, but now the sector and the types of Dogecoin have increased significantly.
On the other hand, the market was in an expansion stage in the past, the cake continued to grow, the competition was relatively small, and the investment environment was relatively relaxed. But now the market size is limited, and there are more and more competing coins. The intensity of competition is beyond imagination. In the long run, most projects may be eliminated. In addition, the amount of funds in the market has reached an unprecedented height, and most of these funds come from investors who have experienced many bull and bear markets. They are very savvy. If you want to significantly increase the price, they will leave the market quickly, making it difficult to drive the market.
