Nine Principles of the Cryptocurrency World: Understanding Them Will Save You Three Years of Mistakes!!!
1. Don't easily be deceived out of low-priced chips; maintain your conviction to prevent manipulation by market makers;
2. Chasing prices and trading all in and out is always a big taboo. When the overall trend is bullish, gradually building positions during dips is safer, with lower costs and greater profits than chasing prices;
3. Distribute profits reasonably to maximize capital release, rather than continuously increasing positions and funding;
4. Take back your investment during sharp rises and hold your coins during sharp declines. Always maintain a positive mindset: avoid speculation, impatience, greed, and fear, and don't fight unprepared battles;
5. The early investments in low-priced coins through private placements rely on experience and betting on the coin's future, while the secondary market's game is a process based on technical and news analysis. Don't lose sight of the fundamentals, or it will end in chaos.
6. Position building and unloading must be layered and segmented, gradually widening the price gaps to effectively control the risk and profit ratio;
7. Be familiar with the correlation effects. Monitor the market trends while keeping an eye on other coins' movements; every coin in the market is not isolated, and despite seeming unconnected, they are intricately linked. Understand the correlation effects and fully utilize consulting tools and apps;
8. Position allocation should be reasonable, with a balanced mix of hot coins and value coins. Pay attention to pressure resistance and profit intake ratios. Being too conservative may lead to missed opportunities, while being too aggressive may bring high risks! The main characteristic of value coins is stability, while hot coins are known for their volatility— they can skyrocket or plummet to zero in one battle.
9. Investing spare cash is fundamental. Having coins in the market, funds in your account, and cash in your pocket is the safest and most reassuring setup. Avoid going all in; managing risk and rational fund allocation are key to maintaining your mindset and determining your success or failure.
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