Every bull market is a time to get rich, but it's easy to lose it all quickly because of an overconfident mentality. Here are my modifications to these ten strategies to help you keep your profits and stay competitive in the market:
1. Smart Diversification
The cryptocurrency field is full of risks. Don't bet on a single or very few currencies. Even projects that were once ranked in the top ten, such as LUNA, may go to zero overnight. Building a reasonable investment portfolio and ensuring weak correlation is the key to maintaining a balanced position. Determine the investment portfolio and quantity limit based on the amount of funds and risk tolerance: 50,000 to 500,000 US dollars, about 10 currencies;
500,000-5,000,000 USD in about 20 currencies;
Over 5 million USD, in about 30 currencies.
At the same time, focus on areas you are familiar with and the core narratives of each cycle, such as the core narratives for 2023-2025: AI, RWA, DEPIN, GAMEFI, SOL, MEME.
2. Regular portfolio rebalancing
Cryptocurrency investing is challenging, fast-changing, and full of risks. It is essential to regularly track your holdings and rebalance your portfolio. Monitor your holdings through the dashboard, and follow the official Twitter and community for the latest updates. Adjust your positions with higher returns, balance your overall portfolio, and seize market rotation opportunities.
3. Effective risk management
Develop a feasible risk control strategy with Bitcoin as the main benchmark. Set a retracement threshold for the overall position to prevent excessive losses. Risk control managers, traders or researchers should be independent of each other, or use computers to automatically execute to avoid emotional interference.
4. Be cautious when facing greed and fear
The market is often affected by FOMO (fear of missing out) and FUD (fear, uncertainty, doubt). This is especially true for the cryptocurrency market, where the development of social media has led to an endless stream of voices. Investment requires rational thinking, taking into account the macro, micro, data and funds, and making a comprehensive market judgment.
5. Pay attention to market sentiment
Investors often profit from market sentiment. It is crucial to identify the end and detonation point of track rotation. Track search index, Twitter discussion heat and smart money trends to adjust investment strategies in a timely manner.
6. Keep learning
It is important to focus on the areas you are interested in. Everyone has limited energy and cannot cover all areas. Build a team or seek organizational cooperation to share resources and learn from each other.
7. Protect asset security
Safety is always the top priority. Users holding more than $100,000 are advised to use cold wallets to store their assets. Cold wallets can minimize exchange risks and ensure asset safety.
8. Take profits at the right time
Make plans and predict market trends, and plan profit-taking strategies in advance. In the market, sprints and pauses are equally important.
9. Be patient
Investing is a long-term business. Extend the time dimension and think and invest like Buffett. Remember the importance of earning cyclical returns, which is the key to staying competitive.
10. Maintain a healthy mindset. Technology and knowledge can be learned, but the right mindset is crucial. Investment success depends not only on technology and knowledge, but also on a stable and healthy mindset. Investing is a mental training that requires constant improvement and adjustment.
As an investor who has been in the cryptocurrency world for many years, I am happy to share my experience and insights with you. If you are interested in the cryptocurrency world but don't know how to get started, you may want to follow my homepage. There, we can explore the mysteries of the cryptocurrency world and future possibilities together. Click on my avatar to learn more about me. Looking forward to communicating with you!