Do you really understand your risk tolerance?
The high volatility in the crypto world makes it difficult for many to withstand the test. Investing more than your psychological limits will lead to panic selling when prices drop, and could even result in a mental breakdown. Before investing, understanding and accepting your own risk tolerance is key to formulating strategies.
Blindly following trends with large positions will ultimately lead to being taken advantage of by the market. Only by adjusting your positions according to your psychological tolerance and setting stop-losses can you avoid losing control of your emotions.
Investing is not only a technical endeavor but also a mental one. Understanding yourself is the first step; rationally planning your capital allocation will help you avoid being caught off guard by the market's ups and downs.
Learn to coexist peacefully with yourself, recognize that losses are normal, and your tolerance will determine your survival space.
