Survival guide for newcomers to the cryptocurrency world
1. Rationally view profit expectations
The cryptocurrency market today has long since bid farewell to the wild era and is developing towards standardization and institutionalization. The past myth of 'hitting it big with a single coin' is almost impossible to replicate now. Even when a bull market arrives, there are very few coins that can achieve a more than 50-fold increase. Do not enter the market with unrealistic fantasies of getting rich.
2. Beware of the risk traps in the primary market
Participating in the primary market may seem like a low-cost, high-return venture, but it hides crises. The vast majority of projects will ultimately head towards zero, and those who recommend your participation often won’t tell you this harsh truth. Moreover, even if a project successfully lists on a small exchange, some so-called industry leaders may still persuade you to hold on while they offload their tokens.
3. The correct way to engage in contract trading
In contract trading, using full margin and high leverage can indeed bring huge profits, but it also comes with devastating risks. The core of trading coins lies in the reasonable use of rolling strategies to gradually accumulate profits, rather than pursuing exorbitant profits from a single trade.
4. Stay away from the late-stage frenzy of market speculation
When a large number of people in the market enthusiastically recommend a certain coin, it often signals the impending end of that trend. If you already hold that coin, consider cashing out; if you haven't entered yet, doing so now might mean becoming a high-priced buyer, so proceed with caution.
5. Personal development takes precedence over trading cryptocurrencies
For college students and young people, academic studies, self-improvement, and stable career development should be the primary tasks, with trading cryptocurrencies as a side job. Trading is a long-term battle, and having a stable source of income outside of trading can provide ongoing financial support for investments and increase the chances of success.
6. Maintain a calm trading mindset
Wealth does not favor those who lack virtue and are eager for quick success. In trading, whether in profit or loss, one must maintain a calm mindset and deeply understand the principle of 'profit and loss originating from the same source.' After each trade, one should carefully summarize experiences and lessons to avoid being swayed by emotions in trading decisions.
7. Be cautious of others' 'money-making recommendations'
Opportunities that can truly make money are not easily shared by others. If someone confidently guarantees that investing in a certain coin will make you rich, be very cautious; it's likely that they are eyeing your funds.
8. Don't easily trust displayed returns
Those who showcase high returns on their positions may only selectively display the profitable parts, and the overall returns might not be ideal. They do this often to gain your trust and achieve their ulterior motives.
9. High-risk warning for contract trading
The risk of total loss in contract trading is extremely high, and human desires are infinite. Few people can completely overcome their gambling tendencies and rationally control each trade. A single uncontrolled trade can wipe out all previous profits and principal.
10. Establish your own trading system
In trading, one must have the ability to think independently and not blindly follow others' opinions. Others' successful experiences can serve as references, but only by combining them with one's own circumstances and exploring a suitable trading strategy can one achieve stable profits.
11. Learn from the experiences of veterans in the cryptocurrency circle
Engage more with experienced individuals in the cryptocurrency circle, even if their trading results are not ideal. By observing and analyzing the reasons for their failures, one can timely avoid potential risks in their own trading; sometimes, counter-trading can lead to finding profitable paths.