Lessons not to be missed in the upcoming #crytocoin cycle
The #Crypto market is preparing to enter a new uptrend season, equipping yourself with the necessary knowledge and skills to optimize profits and limit risks is extremely important.
Here are 10 lessons that Lyn thinks every investor should keep in mind before facing market fluctuations.
1. Liquidity is the key
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In every investment decision, understanding and taking advantage of market liquidity is the deciding factor. The greater the liquidity, the stronger the token's price momentum.
High liquidity: When a particular market or coin has high liquidity, this means that there are many buyers and sellers participating, helping to stabilize prices. Trading is done smoothly, without causing large price fluctuations when there are large buy or sell orders.
Low liquidity: This means that few people participate in buying and selling, leading to a large buy or sell order that can cause significant price fluctuations, making the market unstable and difficult to predict.
2. Altcoin prices: up the stairs, down the elevator
The coins #altcoin often have strong fluctuations during the uptrend season, but also easily lose value in a short period of time.
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Panic Sell-Off: When there is negative news or the general market corrects, investors tend to quickly sell off altcoins due to fear of losing value, leading to a sharp drop in price in a short period of time.
