If you have 20,000 yuan in your hand and want to enter the cryptocurrency circle, what should you do?
If you want to change your life, please read this article
Today I want to say something different from others, the heartfelt words of an old leek who has experienced bull and bear markets.
I don’t know if you often see the phrase "stay away from contracts and cherish your life"?
Everyone enters the circle hoping to find a 100x or 1,000x coin, thinking of the phrase "a day in the cryptocurrency circle is ten years in the world", but now is not that era.
If you are an ordinary person without much original capital, you want to invest in Bitcoin and Ethereum to make a lot of money that can change your destiny. In the past, I would also let you buy BTC ETH, and you can make a lot of money in spot trading, but now if you don’t have much capital, even if BTC rises to $100,000, it will not completely change your life.
Don’t get me wrong, some higher-risk ones may be more suitable for you. Profits and losses come from the same source. How much risk you can bear will determine how much return you will get.
Can hoarding coins in a bear market and selling them in a bull market achieve a 100-fold increase and change your life?
I can tell you from my own experience that it is a delusion. Nowadays, the number of currencies in the cryptocurrency circle is even greater than the number of leeks. Financing projects are coming one after another, and the speed of listing new coins is faster than the growth rate of leeks. Look at the average increase of new coins on Binance and Eurocoin. The market value is inflated after listing, and the valuation is outrageous. Institutions continue to invest in projects and get chips with almost no cost. They keep selling them online and let leeks take over for them. The funds they cash out in the cryptocurrency circle are drained by them. The daily trading volume is 10 billion, and the valuation of a project is 10 billion when it is listed. The liquidity of the entire market is less than 1%. At present, it is seriously anemic. Maybe this is the nature of the speculative market.
If you say that many people have become free from wealth by selling leeks, then that is a very small number of people. I don’t want to touch leeks. It is better to study contract futures carefully than to touch leeks. Even if you leave this circle, there are still many trading targets to choose from.
In this market, you need to master a skill. There are many things that can be done in this industry. Unless you have experts around you, it is difficult for you to keep up with the pace of the industry. If you want to improve your knowledge, the fastest and most effective way is to consult experienced people or read books. Remember to master one thing and don't try to grasp everything. Otherwise, you may not be able to do anything.Of course, please put aside your bias and laziness, invest your energy, collect information, and conduct in-depth research, which is far more important than money.
First of all, we must recognize the situation and ourselves. The purpose of coming to this circle is to change our lives. Please build a complete plan for yourself. When to buy? When to sell? What target to buy, what is the strategy? How to do risk control?
I communicated with my friends in the skirt and repeatedly emphasized that most people can only make money from trends. In many industries, as long as you persist in your heart, you can be the top, but losing money in the investment market is the norm. People who are smarter and more diligent than you still lose money here. Why can you make money? Investment is to make money with money. If the capital is too little, it is easy to breed gambling. Gambling is not terrible. We must be principled to gamble. Since we gamble, we should gamble with the highest profit and loss ratio.
What is a trend? It means that the bull market lasts for one to two years. Make a good plan during the transition between bull and bear markets, follow objective laws and data, and accumulate your original assets by going long on the currency standard.
Pay more attention to new projects. People now like new things and new stories. New coins that have just been listed on Binance in the bear market can be circled. Don't buy them as soon as they are listed. Spend some time and energy to analyze and study them from multiple angles. If the research is good, it is correct to buy them in batches at this time.
The currency circle is developing very fast now, and learning should be strengthened in this environment. Risks and benefits coexist. The current market has passed the stage of wild growth, and potential profits are declining rapidly. If you want to get rich quickly and don't want to pay too much attention to these, then the only thing left is contracts, which even have more possibilities than altcoins.
I used to be like most people who came in. Many seniors told me to stay away from contracts and cherish my life, but I always think that the cryptocurrency contract market is a very great product. The cryptocurrency itself is a game of game, a game of human nature, a zero-sum game. Since it is a game, we must first understand the rules of the game. The maturity of people's investment logic is to constantly recognize the rules of the game in this market.
The current cryptocurrency market has a heavier speculative attribute. You should not look at things with prejudice, and don't think that you are right and others are stupid. Be more open-minded and think about problems from multiple perspectives. Everyone has a path suitable for themselves. Buffett can make money by value investment, and Soros can also make money by speculation. No one is necessarily right. The best result is the one that suits you. Please don't be lazy anymore. Spend time and energy to strengthen your trading system, so that you will not lose this opportunity to change your destiny again in the future.
Of course, first build a long-term plan, understand the spot band thoroughly, and then start your contract trading journey. I think contracts are very good investment tools. Not only can you make money when the market rises, but you can also make money when it falls. It can also be used to hedge spot. If you lose money and blow up your position in a contract, it is your fault. It is a problem with your trading system and trading plan. This is not the fault of the contract itself. The existence of the contract itself is like a tool. What's wrong with the tool? It is the person who uses it who makes the mistake. Why should the contract, a tool, take the blame for this mistake? You lose money because you have not established a trading system, have no discipline, have a bad mentality, and do not have a stop loss.
Let's understand the advantages and risks of contracts. Can we really fight against human nature and not blow up our positions? Some people have little capital. Do you think there is any way to accumulate capital faster in the current market?
Spot assumes that you only have $1,000 today, and Bitcoin is currently $30,000. You think Bitcoin is about to rise. If you buy it with $1,000 and it rises to $36,000, you will make $200, because you only have $1,000, and you only make $200 when the B price doubles.
Contract assumes that you also think that Bitcoin is about to rise +20%*5, and you make $1,000 with your $1,000.
But before you start doing contracts, you must learn how to manage positions and build your own trading system.
The price of the currency has risen for a while. Suppose you think that the price will fall back in the future and you can go short, then your income will be the same as above. If it is spot, you only have one direction to buy and rise.
