Position and timing are more important than what coin to buy!
Importance of position
Example:
The coin has increased 100 times, but the position is small:
You chose the right coin, it has increased 100 times, but you only invested 100 yuan and finally made 10,000 yuan. Although the rate of return is high, the absolute return is not large due to the small amount of initial investment.
The same coin, large position investment:
If you invested 1 million in the same coin, it increased 100 times, and you made 100 million. This income far exceeds the investment of a small position, and you can achieve financial freedom.
Position management:
Heavy position investment: With confidence and certainty, heavy positions can bring huge returns. Risk control: When investing heavily, you should also pay attention to risk control and set a stop loss point to prevent unbearable losses.
Importance of timing
Example:
Buy at a high point, experience a decline and sideways:
Suppose you buy at the high point of the coin, and then the coin price plummets 50% and goes sideways for three months. After experiencing a 50% loss and a long period of sideways trading, you may have sold your shares because of an unstable mentality or loss of confidence in the project. In the end, the price of the currency rose 100 times, but you may have missed this opportunity because you had sold it during the plunge or sideways trading.
Buy at a low point and hold to the end:
If you buy at a relatively low price, even if you experience short-term fluctuations, you still believe in the value of the project and hold to the end. In this case, you can enjoy a 100-fold increase and ultimately gain huge profits.
Timing selection:
Low-level layout: Buying at a low market can reduce the possibility of losses and increase confidence in holding. Trend following: Following the general trend when the market trend is clear can help avoid large fluctuations and uncertainties.
Summary: Three steps to freedom
Choose the right currency: Choose a currency with potential and good prospects, which is the basis. Large position: When the currency is determined and sure, invest heavily to magnify the income. Hold: Have enough understanding and confidence in the project, be able to hold it in the fluctuations, and finally enjoy long-term benefits.
This method can indeed help achieve financial freedom, but it requires investors to have strong project research capabilities and market judgment, as well as a good mentality and risk control ability.I hope these understandings and strategies can help you invest in the cryptocurrency world.