Rule 1: Test with small amounts, do not go all in. This market is different from traditional investment fields; its extreme volatility means that the risk of going all in is very high, and projects going to zero is not uncommon. Small investments are significant; even if a project 'explodes,' the losses are still manageable. In the market, reserving a 'backup' is the core of protecting the principal, demonstrating respect for market risks.
Rule 2: Decisively act, make quick decisions. In the cryptocurrency market, the timeliness of information is vital. Seize the opportunity and follow up immediately without hesitation. The market is unpredictable, and a moment's hesitation may cause you to miss out on high-yield projects. Acting decisively is not about blindly following trends, but rather based on precise evaluation of the project and keen insight into market dynamics. Each choice must be accountable to one's own judgment; after making a decision, act quickly to gain an advantage in a chaotic market.
Rule 3: Withdraw principal once it doubles, realize profits in batches. In the market, setting a reasonable exit strategy and profit targets is crucial. My principle is to withdraw the principal once the project doubles its returns; thus, subsequent market fluctuations will not affect the locked-in profits, ensuring the safety of the principal. If the project continues to rise, you can gradually offload and realize profits in batches. This strategy effectively addresses market uncertainty. Given the volatile nature of the cryptocurrency market, once a project retracts, both principal and profits face risks; therefore, achieving profit targets and withdrawing the principal in time is key to risk control. Note that for projects not specifically marked, it is recommended to exit according to target profits to ensure locked-in gains.
Rule 4: Diversify investments to reduce overall risk. In high-risk markets, diversifying investments is a good strategy to avoid concentrated risks. For example, if planning to invest 500 USDT/10 SOL/1 ETH, it can be spread across 10 projects, investing 50 each. This way, even if a single project fails, the overall impact on funds is limited, and losses can be easily absorbed. Many projects in the cryptocurrency market have zero-risk threats, and diversified investments can effectively control overall risk. If you can select projects across different industries and types of cryptocurrencies, it can further reduce the risk of a single project failure. Regardless of market trends, diversifying investments is a wise approach to deal with fluctuations.
Rule 5: Stay calm, do not seek quick gains. In the market, a calm and patient mindset is key to success. Although there are many opportunities in the cryptocurrency market, good chances do not arise daily. Learn to discern and select, waiting for the right moment is far better than blindly rushing in. Many investors lose their capital due to an unbalanced mindset, attempting to get rich quickly, only to end up with nothing due to impatience. Market opportunities are hard to find, but with patience, suitable projects will eventually come along. Avoiding impatience keeps investment thinking clear and helps you steer clear of the 'greed trap.' Always remember: The 'myth' of getting rich quickly in the cryptocurrency market is often a hype illusion; staying calm and patient is the right path.
In addition, there are several tips to help you avoid operational pitfalls:
4. Be cautious when bottom fishing: The characteristics of the market projects dictate that you must not recklessly bottom fish, especially for projects that have significantly risen and then retraced, as they often plummet to zero. Maintain precise judgment of trends and do not impulsively bottom fish just because prices seem low, which only increases risks.
5. Familiarize with the process: Before entering, investors must be well-versed in the process and must not follow the crowd blindly. Internal operations are particularly unique and require extra caution.
6. Monitor dynamics: Closely watch market changes and withdraw principal at the right time. Make good use of the trading platform's 'double your principal' feature to safeguard your capital. The legends of 'diamond hands' getting rich are often the result of market manipulators; do not be easily deceived. Manipulators often adjust their strategies based on retail investors' behaviors, so investors must remain vigilant and not be fooled by 'small investments, large returns' stories.
Every investor has their unique operational ideas; if you choose to join our team, please follow my suggestions. These five rules have been tested in the market and can help you navigate the cryptocurrency market steadily. In market operations, discipline is paramount; follow the rules and do not let emotions take control. The right mindset and decisive execution are the keys to success.
In summary, I hope these 5 golden rules and 3 market suggestions can safeguard your investment journey. The cryptocurrency market is filled with both opportunities and risks; proceeding cautiously, strictly controlling risks, and adhering to discipline is the way to keep pace and seize opportunities in this high-volatility market. Let us explore treasures in the cryptocurrency realm together, avoid risks, and partake in the wealth-making endeavor. Trading and gaining insights is largely like this; from seven losses and two breakevens to one profit, only by focusing wholeheartedly, discarding complicated profit models, and adhering to a single trading system can this system become your wealth code over time.
