In the cryptocurrency market, the proportion of people who can genuinely make money is relatively low, estimated at about 10%-20%. This group usually possesses deep financial knowledge, rich investment experience, and strong technical analysis skills, with a profound understanding of blockchain technology and cryptocurrencies. They can achieve profits through accurate market trend judgment, reasonable asset allocation, and strict risk management. The proportion of people making money in the cryptocurrency market can be relatively high, possibly reaching 50%-70%. For example, some professional cryptocurrency fund managers leverage their team's research and analytical capabilities to seize opportunities in the market, obtaining returns by investing in various cryptocurrencies or participating in early-stage projects.
In a daze, I have been trading cryptocurrencies for many years. The bittersweet experiences I have gone through are truly known only to each trader themselves. Accompanied by the helplessness of not incurring losses, the frustration of having no breakthroughs, and the understanding of this spiral ascent in progress, I finally crossed the door to profitability. Those who have been in the game for more than two years can relate. Initially, it was all about intuition and practice, but after feeling the pain of losses, I realized that inspiration is far less stable than a systematic approach. Intuition will infinitely magnify human weaknesses, and human nature is something we cannot resist. The only way is to use a system to set rules. If you, as a newcomer, are still relying on intuition to trade, you must start building your own system now.
Brother Du shares some of my insights from the cryptocurrency market.
Having struggled in the unpredictable world of cryptocurrencies for many years, I have seen too many newcomers enter the market full of hope only to be defeated in a short period.
The harsh reality has left me battered and bruised. As a seasoned cryptocurrency enthusiast, today I want to give some sincere and practical advice to the 'new investors' who have just entered the cryptocurrency market.
I hope these suggestions can help everyone navigate this field filled with opportunities and challenges, minimizing detours and maximizing gains.
1. Mindset is paramount: trading cryptocurrencies is like acting, do not get caught up in gains and losses.
The cryptocurrency market is ever-changing, and price fluctuations can often make people's emotions ride a roller coaster in an instant. At this moment, having a correct mindset becomes particularly important. Treat trading cryptocurrencies as a game, and do not get overly entangled in the gains and losses of each transaction. If you win, consider it a small reward in the game; if you lose, treat it as tuition for accumulating experience. Maintain a relaxed and open mindset so that when facing the market's storms, you won't lose your composure. Do not let the results of trading excessively affect your life and emotions, as there are still many beautiful things in life worth our attention and cherishing.
2. Capital planning: invest spare money to feel at ease.
Before deciding to invest money in trading cryptocurrencies, you must first examine your financial situation. Ensure that the funds used for trading are spare money, meaning even if you lose everything, it won't significantly impact your daily life. This is crucial because once you use essential living funds, such as mortgage, car loan, or children's education funds, it becomes challenging to remain calm and rational during market fluctuations. The premise of being able to take risks is that this money itself is expendable 'spare money', allowing you to operate more comfortably and avoid falling into the trap of blind investment due to the urgency to recoup losses.
3. Knowledge empowerment: learning is endless, skills are never excessive.
The cryptocurrency market is not a place where one can survive solely on luck; it requires investors to have a certain level of professional knowledge and skills. Therefore, new investors must seize the time to learn and quickly master some practical technical indicators and trading strategies. For example, learn to understand candlestick charts, moving average systems, MACD, RSI, and other common technical indicators to analyze market trends and judge buying and selling opportunities. At the same time, engage in practical operations often. Do not fear making mistakes, but after each trade, summarize your experiences and lessons carefully to continuously optimize your trading strategy. Reading classic investment books, participating in online or offline investment training courses, and exchanging insights with other cryptocurrency enthusiasts are all ways to enhance your knowledge and trading skills.
4. Cautious initial battles: careful preparation, simulate first.
For beginners trading cryptocurrencies for the first time, do not act rashly. Prepare meticulously as if you are facing an important battle, and practice using a simulated trading system first. In a simulated environment, you can familiarize yourself with the operation process of the trading platform, try using the technical indicators and trading strategies you have learned for buying and selling operations, observe the market's reaction, and accumulate valuable trading experience. Only after achieving some results in the simulated system and gaining enough confidence in your trading methods should you consider entering the real market. This can greatly reduce the risks of first-time trading and avoid unnecessary losses due to ignorance and recklessness.
5. Principal protection: reinvest profits, proceed steadily.
The principal is the foundation for survival and development in the cryptocurrency market, and it must be well protected. When you have made a certain profit from early trades, consider using this part of the earned money for subsequent trading operations. This way, even if subsequent trades incur losses, the principal will remain intact, and your mindset will be more stable, allowing for smoother operations. Always remember that protecting the principal is key to long-term profitability in the cryptocurrency market; do not blindly take risks in pursuit of high profits and put the principal in jeopardy.
Recently, there is insider information about a new cryptocurrency, expected to launch in the next few days, leaving 333 for entry.
