Friends who have just entered the cryptocurrency circle must be careful to avoid these "minefields" and avoid unnecessary mistakes:
1. Carefully select currencies: Most small currencies are "leek harvesters". It is not uncommon for them to plummet to almost zero and drop by more than 99%. Those with low market value and no reputation should not be touched. Give priority to mainstream currencies.
2. Lower expectations: The myth of getting rich in the cryptocurrency circle is difficult to reproduce. Now institutions and elites have entered the market, and the era of huge profits is gone. It is quite impressive for a novice to double his income. If he can avoid losing money, he has surpassed 90% of novice players.
3. Wallet identification: If you have a large amount of funds and want to put it in your wallet, you must be careful to choose. Small wallets have a high risk of running away, and exchanges are also unsafe.
4. Give up ultra-short speculation: The cryptocurrency market is like a roller coaster. It is common for BTC to fall 20% a day, and it is not uncommon for altcoins to be cut in half. Ultra-short-term operations are extremely difficult. It is better to hold the coins in your hands steadily.
5. Set the bottom line of profit and loss: set an "exit line" for yourself, and stop loss decisively when the price drops to the preset point; when the price rises and reaches the target, stop profit resolutely, and don't be greedy for the subsequent increase. You should know that many people lose money in the bull market, and many of them do not know how to stop profit in time.
6. Control the entry funds: The risk of the currency circle is extremely high, and there are hidden risks in both the entry and exit of funds. Don't bet all your wealth in it. Use idle funds to test the waters in a small amount and get familiar with the environment first.
7. Keep learning: cognition determines the boundary of wealth. Money earned by luck will sooner or later be lost by ability, and even go into debt. Only by continuously learning about the currency circle and improving cognition can you gain a firm foothold in the market.