Advice for Newcomers to the Crypto World! Avoid Pitfalls in the Crypto Space! Carefully read to avoid unnecessary detours!!
1. Do not invest in small cryptocurrencies. Most small cryptocurrencies are just schemes, and they can drop to zero, with declines of over 99%. Avoid those with small market caps that you have never heard of; choose mainstream cryptocurrencies instead.
2. Do not have overly high expectations. The era of tenfold or hundredfold returns is over. Now, major institutions and elites are entering the market, and large profits are no longer available. Achieving a double return is already quite good; if a newcomer can avoid losses, they have already outperformed over 90% of people.
3. Do not store money in unknown wallets. For large amounts, it is recommended to use wallets, as exchanges also carry risks. Even small wallets can have the risk of scams.
4. Do not engage in ultra-short-term trading. The fluctuations in the crypto market are significant; it is common for Bitcoin to drop 20% in a day, and altcoins can halve in value. Short-term trading is very hard to control, so hold onto the cryptocurrencies you own.
5. Set stop-loss and take-profit levels. Set targets for yourself; if the price drops to a certain level, exit decisively. If it rises to a certain level, sell without worrying about how much it might increase afterward. Many people lose in a bull market simply because they do not take profits in time.
6. Do not invest all your funds in the crypto market. The risks are too high, and there are risks involved in both depositing and withdrawing funds. It is advisable to use your spare money or a small amount to practice in the crypto market first. 7. Keep learning continuously. People cannot earn money beyond their understanding. Even if you make a lot of money initially, if your understanding does not improve, you will quickly lose it back, and you may end up with heavy losses. Keep learning to enhance your understanding.
The crypto market is full of uncertainties and challenges, but it also contains potential opportunities. Investors should fully understand the associated risks when participating in crypto investments, remain calm and rational, and respond to market changes with a sound strategy!!!
