Here are some important tips I emphasized in my communication with newbies in the cryptocurrency circle. I hope you can remember them and avoid paying expensive fees in the market.
1. Choose a trading platform
Only use Anbi or Ouyi, do not touch other altcoin platforms. If you really want to buy altcoins, you can reserve a Gate.
2. Don’t play with high leverage contracts, but understand the contract mechanism
Contracts are for buying up and selling down in the traditional financial market, but in the cryptocurrency market, leverage can be increased to 125 times (very high). We do not recommend you to play high leverage contracts, because leverage contracts are very risky, and no matter who you are, you will eventually change your money to the dealer. However, understanding the basic knowledge of contracts will be helpful for the future bull market. I support low leverage. As a person in the cryptocurrency circle, if you don’t understand contracts, you are unqualified. It is recommended to use Binance grid trading, play with low multiples, and understand the operation mode, which is still very good.
3. Don’t chase the rise and sell the fall
No matter in any market, chasing ups and downs is a big taboo. When the price of a currency rises, you want to chase it; when the price of a currency falls, you want to sell it. In the currency circle, the increase of any currency is very large, please remember not to chase ups and downs. When a currency rises rapidly, wait and see, 80% of people are taking over (20% can make a profit, depending on your judgment). When the price of a currency falls badly, if you hold the currency, please set a stop loss, and don't wait until it falls below the previous level before selling. If you are optimistic about this currency, please set a stop loss point that you can bear, and do not trigger the stop loss, otherwise do not sell it casually, and don't pay attention to the market after taking profit and stop loss, so as not to affect your mentality.
4. Don’t over-invest and don’t use your living funds to enter this market
There are only two outcomes of overinvestment: bankruptcy and peak life (but it requires the care of fate, all the all-in players in my family have lost money). At the same time, don't use your living expenses to invest, only invest your spare money. If you can't even maintain your daily life, there is no need for you to all-in.
5. Notification Scam
There are many scammers in the cryptocurrency world, please remember the following points:
1. Block everyone who sends you private messages on Telegram. They are 100% scammers.
2. Ninety-five percent of private equity funds in the primary market with no background are scams that run away.
3. Pay attention to the Pixiu disk, that is, the currency that can be bought but not sold. Every time you participate in the primary market, please check whether the contract address is safe.
4. Don’t follow those who lead you to play contracts. They just want to take advantage of your customers’ losses and make you trade contracts with their small platform.
5. Do not click on unknown links as some wallets have been hacked.
6. Choose the right layout and don’t overly distract
There are many different types of cryptocurrency, including spot, DeFi, local dog, chain games, NFT, new listings, airdrops, pledges, etc. But please remember that you are not here to learn various skills, you are here to make money. You don't have to participate in everything, which will only lead to more losses, because the money in the cryptocurrency circle is only earned by those who study in depth, not by those who like to hunt. For me, I participated in all the projects, but they all failed, so I gave up and tried my best to invest in airdrops and study the gameplay. As a result, I found a method that suits me and got rewards.
7. Don’t act alone, find your own circle
In the cryptocurrency circle, you will definitely not be understood by others. If you are determined to enter this circle, you must find a few trustworthy and like-minded cryptocurrency friends (mostly netizens). They can not only be your channel for obtaining information, but also your daily communication partners. More importantly, they make you feel that you are no longer alone, and there are people to accompany you whether you make money or lose money. After all, once you go deep into this circle, there may be few people in your real life who have common topics with you. Therefore, it is very important to choose the right circle, and socializing in the cryptocurrency circle is also very important (but don't make friends with scammers, otherwise you may be cheated of all your funds).
8. Once again: Telegram scam!
Two of my friends were scammed while playing on the plane. Once again, anyone who chats with you privately on the plane is 100% a scammer.
9. The most important magic weapon in the cryptocurrency circle: double the capital
No matter which one you participate in, whether it is spot, contract or local dog, you must remember an iron rule: you must pay out your principal when it doubles! No one can eat the fish from the head to the tail! Spot can be held for a long time, but the local dog market fluctuates greatly! You must pay out your principal when it doubles! Let the profit continue to grow! In this way, even if it continues, your principal is still there! Doubling the principal sounds simple, but it is actually very difficult to implement because it involves human nature. So everyone must consider it seriously. (The same is true for contracts. When it doubles, the closing position is reduced by half).
The above are my suggestions, I hope they will be helpful to you.
