I have been trading cryptocurrencies for 5 years and have earned nearly 10 million. If you want to change your fate, you must try the cryptocurrency circle. If you can't make money in this circle, ordinary people will have no chance in their lifetime. Below, I share the 10 rules I have figured out over the years:
1. Investment should consider the 'real' rate of return: When conducting long-term investment plans, one should focus on the 'real rate of return', because the true rate of return is what remains after deducting 'inflation' and 'taxes' from investment gains. If investors ignore the impact of inflation and taxes, the journey of long-term investment will be arduous.
2. Investment strategies should remain flexible at all times: Investors should keep an open and flexible mindset, courageously absorbing various new investment knowledge, rather than being fixated on a single financial asset.
3. Never follow the crowd, understand contrarian trading: If you buy the same cryptocurrency as others, your performance will be the same as theirs; unless you are different from the majority, it is impossible to achieve outstanding performance. You need to buy when others are disappointed and sell when others are greedy, which requires the greatest perseverance but can yield the greatest rewards.
4. The world is ever-changing: Bear markets are always relatively short-lived, and so are bull markets. Cryptocurrency prices usually rise from one month to one year before the economic cycle hits the bottom, and reverse and fall from one month to one year before reaching the peak; if a mainstream currency is welcomed by investors, the time of popularity is always quite short, and after losing investors' favor, the price will find it hard to return to its original level within two years, like BTC.
5. Avoid trends: When any method of selecting cryptocurrencies becomes popular, investors should switch to less popular methods.
6. Learn from your own mistakes: 'This time is different' is the most costly phrase in history. Some people believe that 'the only way to avoid making investment mistakes is to never invest again!' In fact, this pessimistic thought is the biggest mistake! Investors should learn lessons from mistakes and become a key factor in winning future investment and financial management.
7. Buy when the market is pessimistic: Bull markets are born in pessimism, grow in doubt, mature in optimism, and die in ecstasy; the most pessimistic time is the best buying opportunity, and the most optimistic time is the best selling opportunity.
8. Globalized investment: Avoid putting all your eggs in one basket; the best way is to invest in popular cryptocurrencies (such as BTC, ETH, EOS, etc.), which not only allows you to find more and better profit opportunities but also diversifies the risk of market fluctuations.
9. Carefully select cryptocurrencies for value investment: Investment should consider the value of the cryptocurrency rather than market prospects or economic trends. Because the performance of the cryptocurrency will determine the fluctuations of the market, not the market trend determining the price of the cryptocurrency, even in a bear market, there are still cryptocurrencies that rise against the trend. Choosing undervalued cryptocurrencies for long-term investment and patiently waiting for the market to return to reasonable value can enable us to earn excess profits.
10. No one knows the affairs of the world: In this era of constant innovation in financial products and information explosion, no one can grasp all financial information, and no one can always accurately judge market prospects. We should maintain a humble attitude and continuously learn new knowledge, because successful investors are always looking for new answers to new questions.
Currently, the market is turbulent, walking alone is lonely, follow me for daily potential layouts and bull market strategies. Leave 168 to layout the magic order together!
