Trading cryptocurrencies is not as simple as you think; it’s not just about buying low and selling high to make countless profits. A qualified trader not only needs to understand economics but also keep up with news trends, understand national policies, care about international situations, study the fundamentals and technical aspects of cryptocurrencies, and constantly fight against their own fears and greed. You need to have a big heart to withstand the ups and downs, and endure temptations and hardships. Those who survive in the cryptocurrency world are basically resilient and tough.
Three Principles of Wealth Creation:
Principle One: Strictly control your position to 30% when building your position. You can defend or attack. Never go all in; if the market crashes, not even a deity can save you.
Principle Two: Once the price has increased by 2-3 times, make sure to sell half first. After recouping your investment, use the profits to play slowly with the market makers. When we reach our desired price, we can sell slowly. We keep 10% of our base position to avoid missing out on the benefits of a strong market maker's rapid rise.
Principle Three: When the market is crazy and everyone is chasing the price, you must gradually sell your holdings in stages. Do not be superstitious about the numbers in your account; only the money in your pocket is yours. The numbers in the platform account are just a string of digits.
Three Secrets of Cryptocurrency Trading!
Secret One: Small, unregulated cryptocurrency trading sites are not safe for large amounts of money. If the site disappears, your funds are gone. If you want to trade, go to reputable large sites like Huobi, Bit Era, etc.
Secret Two: Recently, there are many cryptocurrencies available for crowdfunding. Please be cautious; not all are unsuitable for investment, but there are many pitfalls. Be careful, do not rely on luck, and understand clearly. Just because a project is crowdfunding does not mean you should invest; that would be like gambling.
Secret Three: Recently, the cryptocurrency market has been relatively sluggish, and the overall market is cooling down. Focus mainly on short-term operations, and be cautious in your actions. For long-term investment, select high-quality coins from the top 20 globally and consider building positions in batches at lower prices. (Remember, do not go all in, which means don't buy too many coins at once or invest too much money. You can start with half a position, control your risks and funds, and then when the price rises or falls, you can supplement your position or cut losses in a timely manner. This will be more conducive to making money. If you don't supplement your position in time, you can minimize your losses. Trading cryptocurrencies is all about making money, so be prepared to avoid unnecessary losses.)
Finally: A crucial point, do not follow the crowd. Many newcomers start trading cryptocurrencies, see in groups or hear someone say to sell, fearing a drop if they don’t sell. This is the most foolish approach because many people either have no coins or are trying to scare beginners, creating panic to force you to sell at a low price. Some people can’t withstand the fear and quickly dump all their holdings. Once you sell, those people buy at a low price. You sell low and incur losses, while those who create panic profit by buying at low prices. When trading cryptocurrencies, others’ opinions are just advice; the key is to make your own judgments. Is watching the market too tiring? Staying up late until two or three in the morning only to earn a “lonely” profit? Missed the opportunity when the market moved? Always influenced by external factors in your subjective judgments? Just entered the market and don’t understand the trading rules? How to manage your private funds quietly and easily.
