Why is it recommended that investors should not easily get involved in the digital currency market when their funds do not reach 200,000?
The first reason is that for investors with only a few thousand yuan, the income from hard work in reality often far exceeds the income from digital currency investment. In the field of digital currency, if you want to make a large profit with a few thousand yuan, the most likely way is to participate in contract trading or primary market speculation, the so-called "earth-rushing dog". However, these trading methods are extremely risky and the probability of success is extremely low. In contract trading, even if you can win many times, as long as you lose once, all previous efforts may go to waste.
The current market environment is very different from the past, and the wild growth period of the digital currency market has long passed. Don't pin your hopes on the information gap in early projects such as ordi, pepe, and bome, because it is difficult for ordinary investors to seize such opportunities except for the project parties.
The big bull market from 2020 to 2021 has proved that the market is gradually dominated by institutions. Although there may be some opportunities in the future, such as the dividends passed by the SEC, observing the trend of BTC and US stocks, the correlation between the two has reached more than 70%, which shows that the digital currency market has been getting closer and closer to the traditional financial market.
Therefore, for beginners or investors with less funds, I suggest that you make full preparations and research before the funds accumulate to 200,000. When the funds reach this level, you can pay attention to indexes such as AHR999 and buy low and sell high on BTC based on the index. Remember, only after experiencing a complete four-year cycle can you truly have your own understanding and judgment of the digital currency market.
My personal investment experience tells me that there are only two main investment directions in the digital currency market: Bitcoin and altcoins. In the first investment cycle, don't pursue high returns too much, because it is difficult for individual investors to compete with institutions, dealers or whales. Just trade BTC according to the AHR999 index, maintain a steady pace, and don't be affected by short-term market fluctuations.
For future market trends, I think Bitcoin is expected to reach its peak in 2025, and the price may reach 100,000 U or even higher. But please note that the road to the peak is not smooth and there may be multiple large pullbacks.Therefore, in the investment process, we must always remain calm and rational, and not be swayed by the market's emotions.
Regarding the choice of specific projects, I personally favor MakerDao and FTM. As the leading enterprise in the RWA track, MakerDao has great development potential; while FTM is a strong public chain team that may replicate the success of SOL. But please note that any investment is risky, and investors need to make their own judgments and bear risks.
Finally, I want to emphasize that no matter how the market changes, investors should adhere to the principle of only doing spot transactions. Avoid participating in high-risk contract transactions or primary market speculation. At the same time, be wary of those who advocate "brainless rush" or "get rich overnight", who may just want to take advantage of your greed. In the digital currency market, stability and rationality are the key to success.
As an investor who has been working in the currency circle for many years, I am willing to share my experience and insights with you. If you are interested in the currency circle, but don't know how to start, you might as well follow my homepage and discuss the mysteries and future possibilities of the currency circle with me. Click on the avatar introduction to find me.
