How can beginners avoid pitfalls when entering the cryptocurrency space? Here are 8 valuable points summarized for you! Take 1 minute to read carefully, and you’ll walk a smoother path!
1. Do not touch contracts!!! The cryptocurrency space has not only beginners but also many experienced traders! Many experts have lost money in contracts. Beginners should focus on spot trading and hold their positions.
2. Do not play with small altcoins. Most small altcoins are designed to exploit investors, often dropping to zero or losing over 99%. Avoid playing with low market cap coins that you haven't heard of, and choose mainstream cryptocurrencies instead!
3. Do not use small exchanges. Small exchanges can have withdrawal risks at any time, or they might suddenly go offline, making it impossible to withdraw your funds. It is advisable to use mainstream exchanges or to distribute your funds across mainstream exchanges.
4. Do not have overly high expectations. The days of making tenfold or hundredfold profits in cryptocurrency are over. Now that major institutions and elites have entered the market, the big bonuses are gone. Achieving a doubling of your investment is already quite good; for beginners, breaking even means you have already outperformed over 90% of people.
5. Do not store money in unknown wallets. If you have a large amount of funds, it is advisable to keep them in a secure wallet, as exchanges also carry risks. If you use a small wallet, there is also a risk of it being compromised.
6. Do not engage in ultra-short-term trading. The cryptocurrency market is very volatile; it's common for Bitcoin to drop 20% in a single day, and altcoins can be halved instantly. Short-term trading is hard to control, so hold onto the coins you have.
7. Set stop-loss and take-profit levels. Set a target for yourself; if the price drops to a certain level, execute your exit plan decisively. If it rises to a certain level, sell without worrying about how much it might rise afterward. Many people lose in bull markets because they don’t stop-loss in time.
8. Continuously learn. People cannot earn money beyond their understanding. Even if you make a lot initially, if your understanding is insufficient, you will soon lose it back, and it could lead to significant losses. Keep learning and improve your understanding!
Additionally, a reminder! The cryptocurrency market is full of uncertainty and challenges, but it also contains potential opportunities. Investors should fully understand the related risks when participating in cryptocurrency investments, remain calm and rational, and adopt a prudent strategy to respond to market changes!!
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