After years of experience in the cryptocurrency market, I have summarized a set of effective investment strategies. These iron rules apply not only to beginners but also help seasoned investors maintain clarity and achieve stable returns in a complex market environment. Here are the eight iron rules revered in the crypto circle:
1. Capital management: act within your means, diversify risks. Within 100,000, focus on holding one coin: when funds are limited, concentrate on holding one potential coin, deeply researching its fundamentals and technical aspects. 200,000 to 300,000, play with two coins: when funds are slightly more, you can diversify into two coins to reduce risks of a single coin. Within 500,000, three to four coins are enough: as funds increase further, hold a maximum of three to four coins to avoid excessive diversification. No matter how much capital, do not exceed five coins: regardless of funds, the number of coins held should not be too many to avoid management difficulties. Concentrate firepower in a bull market, respond lightly in a bear market: in a bull market, concentrate funds on the most potential coins; when the market is poor, operate lightly to reduce losses and withdraw in time even if losing.
2. Trend is king: follow the market, do not go against the trend. Watch the news, learn techniques: understand market dynamics and technical indicators to improve investment success rates. Downward rebounds are often traps, upward corrections may also be traps: do not blindly catch bottoms or chase highs, operate according to the trend. Do not guess the intentions of major players: the operations of market leaders are difficult to predict, focus on your own investment strategy.
3. Only act when the market is lively, respond flexibly. Act when the market is active: when market sentiment is high, investors are more proactive and can seize opportunities more easily. Operate flexibly, avoid rigidity: adjust strategies promptly according to market changes, do not stubbornly stick to old methods.
4. Stop Loss and Take Profit: Protect principal, lock in profits. Set fixed stop-loss points: stop losses promptly when losing to avoid larger losses. Gradually raise selling prices: when profitable, gradually increase selling prices to ensure profits are not lost.
5. Buy quickly and sell decisively: make quick decisions to avoid hesitation. Buy quickly: decisively buy when opportunities arise to avoid missing out. Sell decisively: sell promptly when reaching expected goals or when the market turns to avoid losses caused by greed.
6. Think carefully before increasing positions. Ask yourself: before increasing positions, consider whether you are willing to invest new funds in the current situation. If the answer is affirmative, then consider increasing positions.
7. Focus on long-term, supplement with short-term. Avoid frequent short-term speculation: short-term operations can easily lead to confusion and affect mindset. Follow the trend: large amounts of money should follow the market trend, holding potential coins for the long term.
8. Do not blindly try to catch the bottom, treat market declines rationally. A large market drop does not mean the bottom has been reached: blindly trying to catch the bottom may lead to further losses. Few people make money in the market: only a small number of people can truly make money, stay rational, and do not follow the crowd blindly.
Investors in the crypto circle, whether beginners or experts, gain not only financial returns but also growth in investment knowledge and experience.
In the investment process of all loyal fans, we will not only provide investors with analytical ideas, basic knowledge of market observation, and methods for using various investment tools, but also bring exciting fundamental interpretations, sorting out the chaotic international situation, and distinguishing various investment influences.
Make you both a winner and an expert in your investments!