🌟🌟A once-in-a-lifetime opportunity is right before your eyes. It is vital to seize this moment and achieve huge growth in your investment portfolio. 🌟🌟
Here are the top ten traps you need to avoid during the bull market in order to multiply your assets. Please be vigilant to ensure that your investment journey is smooth. 👇
1️⃣ Risk of over-diversification
Small investors (investment less than RMB 20,000):
You should not hold more than 5 altcoins.
Medium investors (investment between RMB 20,000 and RMB 50,000):
The number of non-mainstream currencies should be controlled within 10.
Large investors (investment exceeding RMB 50,000):
Although diversified investments can help reduce risks, holdings of non-mainstream currencies should not exceed 20.
2️⃣ Lock in profits in time
At the peak of the bull market, don't lose your mind because of greed.
If you have achieved substantial gains, please cherish and lock in part of the profits to ensure the safety of your investment.
Imagine if the market suddenly adjusts, how will you respond?
Therefore, withdraw your profits regularly and enjoy your investment.
3️⃣ Stay away from FOMO
FOMO, or the fear of missing out, is a major pitfall in investing.
Don’t blindly buy non-mainstream coins that have skyrocketed in value out of panic.
These tokens often experience sharp corrections after a sharp rise, causing you to lose your principal.
Instead, you should gradually accumulate potential non-mainstream coins at lower prices when they are at low levels.
4️⃣ Carefully diversify your investments
Although over-diversification can be risky, a certain degree of diversification is necessary.
In a bull market, investment opportunities will emerge in many fields that you should not miss.
Layer 1 projects, games, artificial intelligence, RWA (real-world asset tokenization) and DeFi (decentralized finance) will all see growth.
Holding at least one alternative coin in each popular sector will ensure that you are able to capture all investment opportunities.
5️⃣ Avoid frequent trading
Keep your investing simple and pure.
Do not trade your non-mainstream currencies frequently, as this will not only increase your tax burden but also make your life more stressful.
Instead, you should pick a group of promising non-mainstream coins and hold them for the long term (HODL).
In the next 1-2 years, relax, don't worry, and just withdraw profits when the time is right.
6️⃣ Make an investment plan
"A battle without preparation is doomed to failure."
Having a plan is one of your key strategies for success in a bull market.
You need to set reasonable profit points for your alternative coins and execute when those points are reached.
For example: extract part of the profit when it grows 5 times, extract again when it grows 10 times, and so on.
Remember, stay calm and make a plan for alternative coins based on your personal goals and expectations.
7️⃣ Self-management of cryptocurrency
Do not store your cryptocurrency on centralized exchanges (CEX) like Binance or Coinbase.
These platforms present potential security risks.
Instead, you should use secure decentralized storage methods such as hardware wallet devices or software solutions like FinanceChainge.
8️⃣ Set reasonable price expectations
Don't blindly pursue unrealistically high increases.
Instead, you should set reasonable price expectations based on your investment goals and the actual situation of the project.
Understanding a project’s market value and potential growth can help you make more informed investment decisions.
9️⃣ Pay attention to tax issues
Although taxation is cumbersome, it is an important part of ensuring the safety of your investment profits.
During a bull market, you need to carefully record the profits and losses of each transaction so that you can easily complete tax declaration when the bull market ends.
Understand the tax policies in your country and ensure that your investment activities comply with regulatory requirements.
10️⃣ In-depth research on investment projects
The last and most important point is to conduct in-depth research on the investment project.
When choosing an alternative coin, it is vital to do your own research.
Understanding the project's background, team, technology, application scenarios, and other aspects will help you assess the project's potential and risks.
Avoid investing in projects that lack practical application value or are of low quality to ensure the safety of your investment.
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