1. Confirmation Bias: People pay close attention to information that confirms their beliefs and ignores information that contradicts it.How to avoid: While preparing to execute the order, we try to find support reasons for the opposite direction. The second consideration can not be too careful.2. The illusion of Control: The illusion of control is the tendency for people to overestimate their ability to control events. It occurs when someone uses a lot of market indicators/TA's method and places the truth on as many as possible.How to avoid: Remember that "Simple is the best". The good-enough trading system on a simple level with a good-enough winning probability will help to exist in the full lying market.3. Mental-Accounting Bias: The investor has 1000 USD initial capital and 200 USD profit. The psychology of investors usually tries to keep the capital of 1000 USD, while 200 USD will take away more risky investments with the thought that if they lose, they will only lose profits. However, in essence, 200 USD or 1000 USD are all our assets.How to avoid:- Convert the profit to hard assets, if the profit is enough big.- Withdraw the profit periodically, only trade with the initial capital. We can review and reinvest into the capital every month/year.4. Recency Bias: People analyze a stock that has good fundamentals, and now has a low valuation, but the market trend over the last few weeks is down. Most of them will be more inclined to the negative side and think that this is no longer an attractive investment. However, with experienced analysts, they will see the other long-term factors and see the decline as a temporary correction, even an opportunity to buy shares cheaply.How to avoid: Let's see things from a wider perspective.5. Herd Mentality:- FOMO: Fear of missing out when seeing nearby someone get a lot of money.- Be panicked when the market sharply decreases.How to avoid:- For short-term trading, be patient, do not chase the price. There are a lot of chances for the next trading.- For long-term trading, make out some major support areas, and early enter orders with sufficient volume in order to avoid FOMO.- For the problem of strongly competing for sales in the plunging market, stay away from illiquid assets.6. Loss Aversion: Loss aversion refers to people’s tendency to prefer suffering huge losses with the expectation that the price will come back.How to avoid: Make a plan for managing the capital. Everything is just probability, don't hesitate to cut your losses when guessing wrong.Leave room for mistakes.7. Overconfidence: The psychological problem occurs when an investor wins continuously, they will be more subjective and less disciplined.How to avoid: Always keep a balanced mind!For example, a good psychological investor usually set minimum and maximum profit targets by period (week, month, year). If the lowest goal hasn't been reached, confidence is superfluous. If the highest goal has been reached, the rest should be taken into account. Of course, goal setting must be consistent with the strategy and not overwhelming, it is impossible to set a 100% profit in a week...$BTC $ETH $BNB

Cryptocurrencies: What are they?Cryptocurrencies are virtual currencies that use cryptography to ensure the security of transactions carried out over the Internet.Basically, cryptography works like the serial numbers or signs used on banknotes to prevent counterfeiting, for example.In the case of cryptocurrencies, these hidden signs are codes that are very difficult to crack. This is possible thanks to blockchain, a technology that works like a big ledger.Multiple transactions and logs are recorded, spread across multiple computers. All transactions are blocked by cryptography, which guarantees the anonymity of those who carry them out.Banks and financial institutions around the world, including the Central Bank of Spain and Latin American countries, have shown interest in using blockchain in interbank transfers, for example.Despite having this differentiated technology, in practice, cryptocurrencies are used for the same purpose as any other.This means that they buy both goods and services on the Internet. As they are not considered official currencies, they are not subject to market devaluation or inflation.In addition, they are exchangeable for traditional -or official- money and vice versa... Pay Id 235119828

$BTC $ETH $BNB Fiat Money ! Fiat is a Latin word that means “by decree”. Meaning the dollars, or euros or any other currency for that matter have value because the government orders it to. It’s what is known as “legal tender” coins or banknotes that must be accepted if offered as payment.So the value of today’s money actually comes from a legal status given to it by a central authority, in this case, the government. And so the trust model has changed, from trusting something to trusting someONE (in this case, the government...1- It is centralized – You have a central authority that controls and issues it. In this case the government or central bank... 2- It is not limited by quantity – The government or central bank can print as much as they want whenever needed and inflate the money supply on the market. The problem with printing money is that because you’re flooding the market with more money the value of each dollar drops, so your own money is worth less. When you see prices rising throughout the years it’s not necessarily that prices are rising as much as that the purchasing power of your money is dropping. You need more dollars to buy something that used to “cost less”...Pay Id: 235119828

$BTC $ETH $SOL Paper Money!! Up until a hundred years ago or so we always trusted in someTHING to represent money. However something happened along the way and we’ve changed our trust model from trusting someTHING to trusting in someONE.Let me explain.Over time, people found it too cumbersome to walk around the world carrying bars of gold or other forms of money, so paper money was invented.Here’s how it worked: a bank or government would offer to take possession of your bar of gold; let’s say worth $1000, and in return, that bank would give you receipt certificates, which we call bills, amounting to $1000.Not only were these pieces of paper much easier to carry, but you could spend a dollar on a cup of coffee and not have to cut your gold bar into a thousand pieces. And if you wanted your gold back, you simply took $1000 in bills back to the bank to redeem them for the actual form of money, in this case that gold bar, whenever you needed…And so, paper began its use as money as an instrument of practicality and convenience.However as time progressed, and due to macroeconomic changes, this bond between the paper receipt and the gold it stands for was broken.Now, to explain the path that led us away from the gold standard is extremely complex, but suffice to say that governments told their people that the government itself would be liable for the value of that paper money. Basically we all said “let’s just forget about gold and trade paper instead”.So people continued to trade with receipts that are backed by nothing but the government’s promise. And why did it continue to work? Well, because of trust. Even though there is no actual commodity backing paper money, people trusted the government and that’s how fiat money was created....

$BTC $ETH $BNB What is money exactly?At its core, money represents value. If I do some work for you, you give me money in exchange for the value I gave you. I can then use that money to get something of value from someone else in the future. Throughout history, value has taken many forms and people used a lot of different materials to represent money. Salt, wheat, shells and of course gold have all been used as a medium of exchange.However, in order for something to represent value, people have to trust that it is indeed valuable and will stay valuable long enough for them to redeem that value in the future...