How to Avoid the "Herd Effect" Trap in the Crypto World?
In the crypto world, the herd effect is everywhere—everyone rushes to buy a certain coin, and the price skyrockets; then everyone rushes to sell, and the price plummets. Newcomers are often swayed by this emotion, blindly following the trend, resulting in significant losses.
Experienced investors know how to identify and avoid the herd effect trap. They do not easily follow the crowd's emotions; instead, they independently analyze project value and market conditions, calmly judging the timing for buying and selling.
They understand that the essence of the herd effect is an extreme reaction of market sentiment, usually accompanied by irrational price fluctuations.
Avoid becoming a "follower"; cultivating independent thinking skills is the key to successful investment in the crypto world.
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