In the cryptocurrency world, especially in a bull market, many people are easily misled by the market's noise, chasing highs and selling lows, ultimately becoming 'retail investors'.
Here are 10 practical experiences in cryptocurrency investment to help you avoid traps and seize real opportunities:
1. Hot coins drop quickly too. In a bull market, the hotter the coin (usually accompanied by high control), the faster it rises and falls. The market maker raises the price to attract retail investors; once the unloading is complete, the coin price will collapse rapidly.
2. True potential coins are often low-key. True potential coins and bottom coins rarely receive extensive promotion. Only at the bottom will a small number of people occasionally mention them (like the former LINK, THT, SOL). If you find a coin suddenly being wildly promoted, you should be cautious.
3. The trend in the cryptocurrency market is always a smooth curve. From a broader perspective, the trend in the cryptocurrency market is always a smooth curve, not a straight line of rise or plummet. Short-term surges and drops are merely fluctuations of market sentiment; the long-term trend is the true direction.
4. Market makers' methods for pumping altcoins. The methods used by market makers for pumping altcoins are largely similar: aggressive dumping followed by slow lifting. They first create panic through dumping, attracting retail investors to cut losses, then slowly lift the price to attract more people to take over. If you see a coin suddenly plummet, don't rush to bottom fish; the market maker may be setting up.
5. Traps of new coins on exchanges. New coins on exchanges that first surge and then plummet should definitely be avoided. These coins are often tools used by market makers to harvest retail investors; the surge is to attract attention, while the plummet is to offload.
6. Buying leads to drops, selling leads to rises is normal. In the cryptocurrency world, it's quite normal for buying to lead to drops and selling to lead to rises. If you can't withstand this level of volatility, it indicates that your mindset still needs refinement. Investment requires patience, not being led by short-term fluctuations.
7. A pullback after profit is a signal. When you buy in and the coin price does not drop but rises, but suddenly starts to pull back after you have made a profit of 5%-20%, this is often a signal that the market maker is starting to harvest. At this time, timely profit-taking is key.
8. The strongest rebounds often come from retail investor pools. The coins that rebound the most in price are often not potential coins, but rather retail investor pools. Market makers attract retail investors with a rapid price increase and then quickly dump, completing the harvest.
9. The rhythm of potential coins. In a bull market, some potential coins perform mediocre in the first half, but often start to rise several times in the second half. Be patient and hold on to true potential coins, rather than frequently changing positions.
10. Coins that remain stagnant may be potential coins. In a bull market, if a coin has experienced several times of increase but can still remain stagnant for months, it is likely a potential coin. Stagnation is the market maker's way of washing and absorbing, preparing for the next wave of increase. The market is always right; the problem lies with yourself. Don't complain about the market, but reflect on your strategy and mindset.