The cryptocurrency market is in full swing. Many newcomers enter the market with the mentality of "getting rich quickly", but many people have suffered big losses here. If you have just entered the cryptocurrency circle, you must remember the following six points! Avoid being "baptized" by the market and take the first step!
1. Don't blindly follow the trend and find your own rhythm
There are many so-called "myths" in the cryptocurrency circle, such as a certain coin skyrocketing overnight and a certain project making people make a lot of money. Don't blindly follow the trend and find an investment method that suits you. Don't follow in as soon as you hear others say "make a lot of money". The market is ever-changing, so you must have your own judgment.
2. Understand the coins you invest in and learn to do your homework
Before investing, you must understand what coin you are buying. Don't buy it just because you see that a certain coin has risen quickly recently. Understand the background, team, white paper and actual application scenarios of the project to decide whether it is worth investing.
3. Avoid high leverage and stay calm
Leveraged trading looks tempting, but it also has high risks. Newbies should not easily try high leverage, because it will magnify your losses and even lead to a liquidation. Invest steadily and accumulate experience slowly.
4. Set a stop loss to avoid emotional operations
The market fluctuates greatly, and prices fluctuate very quickly. Setting a reasonable stop loss point can help you avoid big losses and avoid making wrong decisions due to emotions. Remember: stop loss is a means of protecting the principal, don't ignore it.
5. Diversify your investments to reduce risks
Don't put all your eggs in one basket. Diversified investments can effectively reduce the risk of a single project collapse. You can invest in mainstream coins, such as Bitcoin and Ethereum, or try some potential altcoins in moderation, but don't concentrate on investing in a single coin.
6. Learn to manage your mentality and don't be too greedy
The price of the currency circle fluctuates greatly, and profits and losses are very fast. In the market, a calm mentality is particularly important. Don't be overly greedy because of a temporary profit, and don't be depressed because of losses. Keeping a calm mind and operating rationally is the key to success.
There is no shortage of opportunities in the currency circle, but there is no shortage of risks. Newbies must be cautious when entering to avoid pitfalls. Remember the above ten points, proceed step by step, and don’t be impatient, so that you can reap your own wealth in the cryptocurrency world in the future!#BTC
