Investors are prone to losses after entering the circle, revealing the three core reasons
Many investors often find themselves in a state of loss after entering the cryptocurrency circle. There are three main core reasons behind this:
1. Blindly selecting coins and lacking in-depth understanding
In this round of bull market, although altcoins are not without opportunities, only a few of the hundreds of thousands of coins can really rise. When investors lack understanding of industry development and lack of cognition, it is easy to blindly follow the trend and choose coins that do not have potential. Even if you are lucky enough to buy a coin with a large increase, you may miss most of the gains because you don't understand it and only dare to hold a small position.
2. Improper grasp of buying timing
In addition to selecting coins, buying timing is also a key factor in determining the success or failure of an investment. When investors lack understanding of the fundamentals of the selected coin, at least they can use technical analysis to assist decision-making, increase the probability of winning, and reduce the risk of loss. However, when many investors see a coin rising well, they are often eager to chase the rise, resulting in too high a purchase price and difficulty in making profits in the future.
3. Knowing how to buy but not selling, missing opportunities
In the cryptocurrency market, there are few coins that can rise. Even if some investors are lucky and buy currencies with large gains, they may miss the opportunity because they don't know how to sell. Some investors are eager to leave the market after making a little money, missing the subsequent larger gains; some investors are too greedy and still refuse to let go when the market reaches its peak, which eventually leads to losses.
In this market, although the market appearance is ever-changing, the essence of finance and human nature will never change. This year's altcoin market may be particularly cruel, and you can't just rely on luck if you want to turn over. Because in this market, too many people are counting on luck. Even if God gives you a good luck, you need to have enough strength to take over this good luck. Therefore, in the investment process, investors should not only pay attention to the selection of coins and the timing of buying, but also learn how to sell to maximize their own profits.
If this article is helpful to you, you might as well pay attention to Laolang. Introduction to the cooking industry, no threshold to get on the bus!
