In the cryptocurrency world, for newcomers to stand out, there is only one goal: making money.
But to truly make money in this highly volatile, information asymmetrical market, the first step is to enhance your cognitive ability.
As an experienced player in the cryptocurrency world, I have summarized a few points for your reference.
One, improve your understanding before making money.
In any industry, understanding determines profits. This is especially true in the cryptocurrency world.
Many people rush in because they see the blockchain opportunity. But you must understand that this is not a guaranteed profit game, but a competition of understanding. During bull markets, I have seen that those who made money are almost always those willing to spend time learning and researching. Conversely, those who made money by luck often lose it back through luck.
If you are willing to take the time to read white papers, study technology and project logic, then your winning rate will be much higher than those who only focus on candlestick charts and group messages.
Two, beginners must invest with spare money.
Investing with spare money is not an empty phrase, but a bloody lesson summary.
If losing money affects your life, it means you have invested too much. The core of investing is emotional management, and financial pressure is the biggest source of emotional destruction.
For beginners, dollar-cost averaging is the safest method. Choose high-quality mainstream coins, set a fixed amount and time for weekly investments, watch the market less, and stay away from anxiety.
Three, you must do your homework when choosing coins.
Don't follow the crowd to buy coins just because of a KOL or group message. You need to conduct due diligence like an investor.
Does this project have a clear business logic? Is the technology feasible? Is the team background reliable? For foreign projects, you can search for information on Reddit, Twitter, LinkedIn; for domestic ones, you can check Qichacha and Tianyancha.
It is extremely irresponsible to allocate a heavy investment into a coin you do not understand.
Four, have a clear buying and selling plan.
Many people know they should take profits and cut losses, but few can actually do it.
Once the price approaches the set target, greed and fear begin to take hold. As a result, what was originally a short position turns into a long one, and what was once a long-term belief is sold off during a downturn.
Remember: making money relies on planning, while losing money relies on feelings. Set clear goals, execute strictly, don’t cling to battles, and don’t look back.
Five, beginners should be cautious with short-term trading.
Short-term trading is not impossible, but it requires a high level of expertise.
In the cryptocurrency world, there are many tricks, information asymmetry is severe, and market sentiment is highly volatile.
If you don't understand technical analysis, can't read market changes, and have no news channels, then short-term trading is just paying tuition to the market. It is recommended to keep short-term funds within 20% of your total position and to focus on medium to long-term layouts for most positions.
Six, recognize reality: this is not an amusement park.
The cryptocurrency world is not a place where everyone can become rich.
This is a typical zero-sum game market; every penny you earn is lost by someone else.
Price fluctuations are severe, and the factors affecting them are complex. You must establish clear psychological expectations before participating. Don't expect to rely on luck to navigate the cycles.
Seven, understand yourself and find the right method.
What type of investor are you suited for? Are you a stable long-term holder or a risk-taker willing to seize short-term opportunities?
There is no unified answer; the key is to have a clear understanding of yourself.
You cannot simply copy the successful experiences of others; you need to find a rhythm and strategy that suits you.
If you are just entering the market, you can contact me; I will teach you to learn while practicing.
If you are stuck or confused, you can also come to me; I will provide customized suggestions based on your entry points and personal style.
Everyone can find their own way to survive in the cryptocurrency world as long as they are willing to learn, face reality, avoid blind following, and stay ahead of most people.
