These nine skills are essential to learn. The cryptocurrency world is a place for wealth creation, but high returns often come with risks. I have organized some investment tips in the cryptocurrency space, based on my own experiences, and I share them with you.

First, decisiveness

An excellent investor needs the trait of decisiveness. Once you see a good opportunity, follow your instincts. Don’t be afraid of losses; reasonable losses can help mitigate risks. Avoid being indecisive.

Second, entry points

When entering a position, cryptocurrencies can be categorized into two modes: bullish and bearish, which can be further divided into low buy, low sell, high buy, and high sell. If there is a strong trend, all of these are feasible. However, in a volatile market, low sell and high buy should be avoided; remember not to chase highs and sell lows.

Third, position size

Allocate funds in accordance with your psychological tolerance. If your position is too large or fully invested, any change in trend can lead to increased losses and a change in psychology, causing you to lose the ability to operate and analyze calmly, which can lead to mistakes.

Fourth, take profit

In a strong trend, using a trailing stop can increase profit margins. In a volatile market, taking profit requires personal consideration of exit points. In such conditions, even small profits can add up over time.

Fifth, stop loss

Before investing, you should have a stop loss price in mind. After placing an order, set your stop loss price. If the market does not move as you anticipated, you can reduce losses immediately and preserve your capital.

Sixth, frequency

Cryptocurrencies can be traded 24 hours a day, so you might miss some market movements. You need to master your trading frequency; excessive trading can lead to incorrect technical analysis.

Seventh, mindset

Mindset is the most important aspect in this industry. The amount of profit can affect your mindset, but we should focus on whether we are making money or losing money, rather than how much we earn. It’s better to earn less than to lose control and incur losses.

Eighth, adding positions

In a strong trend, we can add to our positions in the direction of the trend, but we should not add positions against the trend. Adding against the trend has a high chance of increasing losses. Additionally, we must not casually withdraw or change stop losses on counter-trend positions.

Ninth, following the trend

When the market shows a strong trend, we should not think about adjusting our positions at will, as all indicators may show high levels. However, indicators can also diverge, and we must not go against the trend.