What is the one thing you absolutely cannot do in the cryptocurrency world?
The most challenging aspect of trading in the cryptocurrency world is not selecting coins or buying and selling, but waiting.
Trading is actually quite simple; it's about seeing the direction clearly and patiently waiting for the trend. Only by catching the trend can you make big money.
That is, in the cryptocurrency world, seeing the direction clearly and then waiting for the right moment to enter a position or, once you have a position, holding it without action is what every trader should do.
Moreover, what you should absolutely not do in the cryptocurrency world is to buy and sell frequently, chasing highs and selling lows.
Among those who invest in cryptocurrencies, there’s often a joke: “You’re manipulating the market! Every time you dive in, it drops, and every time you exit, it rises.” In fact, these individuals feel frustrated, as if the market has its eyes on their little bit of money.
Such people often make predictions about the market, guessing how it will move tomorrow or next month, and then try to profit from every fluctuation, leading to frequent buying and selling, chasing highs and selling lows, which ultimately results in physical and mental exhaustion, with poor outcomes.
But the reality is, short-term market fluctuations are unpredictable; only the gods can foresee them. In the short term, the factors causing price fluctuations are very complex and difficult to grasp, including policy changes, industry developments, capital allocation, market sentiment, etc.;
In the long term, the price of the asset tends to revert to its value. Instead of worrying about these unpredictable fluctuations, it’s better to conduct more research on the asset and upgrade your understanding of the investment market.
Another major downside of frequent trading is the transaction fees. Every time they charge you 1/1000 in fees, after 10 transactions, you have lost 1% of your money. The reason why platform coins have performed well in recent months is closely related to the significant transaction fees in the cryptocurrency world; these fees are all from cryptocurrency investors.
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