💥💥💥 Hold Coin Principles: Smart Investing in the Crypto World
In the digital age, investing in cryptocurrency has become a popular method to increase assets. One of the strategies many investors apply is "hold coin" - holding coins for a long period. This article will share some important principles for you to invest effectively and avoid unnecessary risks.
✍️1. Recognizing Major Price Increase Moments
According to market analysis, there are usually two major price increases in a year: from February to March and from November to December. Especially, December coincides with the Western New Year holiday, leading to investors liquidating their coins and causing a drop in early January. Therefore, the ideal time to buy coins is usually from September to October and in January.
✍️ 2. Halving Cycle and Price Increase Characteristics
The crypto world also follows certain cycles, including the halving cycle that occurs every 4 years. The years 2009, 2012, 2016, 2020, 2024, and beyond are noteworthy times, often leading to significant price increases after each halving event. This helps investors visualize when to place their financial bets.
✍️ 3. Careful Coin Selection
When choosing coins to invest in, select those that have been around for more than 10 months and are foundational coins. This helps increase the potential for profit and minimize the risk of loss. Avoid coins that have not proven their true value in the market.
✍️ 4. Operational Models of Crypto
Crypto can be imagined as a living body. Bitcoin (BTC) is the head, AI acts as the brain, Ethereum (ETH) is the limbs, while layer 1 and layer 2 are respectively the spine and ribs. Meme coins can be seen as clothing, providing attraction but unstable in value.
✍️ 5. Price Increase and Accumulation Cycle
After each strong price increase, the market usually undergoes a gradual decline and accumulation process over about 2-3 years. We need to closely monitor factors such as capital flow, total circulating tokens, and tokens that have not been unlocked to make appropriate decisions.
✍️ 6. Capital Allocation and Risk Management
Do not invest all your capital in a certain part. At that time, waiting for the price to recover can be long and lead to frustration. Diversify your investment portfolio with about 10 coins that contain different parts of crypto. When a certain part of the trend develops strongly, you will at least preserve your invested capital.
✍️7. Buying and Selling Strategy
Once you have chosen the right coin to hold, divide your capital into 3 parts, with each part spaced about 20-25% apart to closely follow the bottom. If the coin has increased too much, do not continue to buy more to avoid risks.
✍️ 8. Taking Profits and Managing Control
Each investor has different targets. Do not hesitate to take profits when you reach 3-5 times your assets. You should take some profits and let the gains grow to your expected level. Note that holding losses should only be at one time, but holding profits can go up to 3-5 times.
✅ Conclusion
Investing in cryptocurrency is a journey full of opportunities and challenges. Understanding and applying the principles of holding coins not only helps you increase your assets but also protects you from risks in a volatile market. Always maintain your mindset, analyze the market, and have a clear strategy. Wishing you success in your investment journey!
