How can novices avoid traps when entering the cryptocurrency circle?
Nine pieces of advice for novices in the cryptocurrency circle
1. Stay away from leveraged contracts!
Whether you are a novice, an old bird, or even an expert, many people have fallen into leveraged contracts. For novices, the safest way is to do spot trading and hold it for a long time.
2. Invest cautiously in small currencies
Many small currencies in the cryptocurrency circle are used to cut leeks. Once they fall, they may directly return to zero, and the decline may even exceed 99%. Try to avoid investing in currencies with small market capitalization and low popularity. It is safer to choose mainstream currencies.
3. Choose a formal exchange
Small exchanges have the risk of running away or unplugging the network cable. Once a problem occurs, the funds may not be withdrawn. It is recommended to choose a formal and mainstream exchange, or to disperse the funds in multiple mainstream exchanges.
4. Lower the expectation of income
The high-yield era of the cryptocurrency circle has passed. Now that institutions and large funds have entered the market, it has become more difficult to obtain high returns. Novices who can do without losing money have surpassed 90% of people.
5. Choose a well-known wallet
If the amount of funds is large, it is recommended to store it in a wallet, because exchanges also have risks. But you must choose a well-known wallet and avoid using a small wallet to avoid the risk of running away.
6. Avoid frequent transactions
The price of the currency circle fluctuates greatly. It is also common for Bitcoin to fall by 20% in a day, and the altcoin may be directly cut in half. Short-term transactions are difficult to control. It is recommended to hold the currency in your hand for a long time.
7. Set stop loss and take profit points
Set clear stop loss and take profit points for yourself, and execute them resolutely once the goal is reached. Many people lose money in the bull market because they don’t stop profit in time.
8. Reasonable allocation of funds
The currency circle is risky, and there are risks in both deposits and withdrawals. It is recommended to practice with your own spare money and small funds first, and don’t invest all your funds in the currency circle.
9. Continue to learn and improve cognition
People’s wealth is often limited by their own cognitive level. Even if you make a lot of money at the beginning, if your cognitive level can’t keep up, you will lose it back quickly. Therefore, you must continue to learn and improve your cognitive level.
