How to Avoid Pitfalls as a Newcomer in the Cryptocurrency World?
1. Don't Play with Small Coins
Most small coins in the cryptocurrency world are designed to take your money. They can drop to zero, falling by over 99%. If the market cap is small and you haven't heard of it, don't invest; stick to mainstream coins.
2. Don't Have Unrealistic Expectations
The days of tenfold or hundredfold gains in the cryptocurrency world are over. With major institutions and elite investors entering the market, those big profits are no longer available. If you can double your investment, that's already quite good; if you can avoid losing money, you've already outperformed over 90% of people.
3. Set Stop-Loss and Take-Profit Targets
Set goals for yourself. If the price drops to a certain level, execute your exit strategy decisively. If it rises to a certain point, sell without worrying about how much more it might rise afterward. Many people lose money in a bull market simply because they don't take profits in time.
4. Don't Bring All Your Funds into Cryptocurrency
The risks in the cryptocurrency market are too high. There are risks associated with both entering and exiting the market. It's advisable to use only your spare money for small investments at first to practice.
5. Keep Learning
People cannot earn money beyond their understanding. Even if you make a lot at the beginning, if your understanding doesn't keep pace, you'll quickly lose it all. You might also incur significant losses, so it's essential to keep learning and improving your knowledge.
6. Find an Experienced and Reliable Mentor
There are many pitfalls in the cryptocurrency world, with over 99% of participants losing money. Find a trustworthy and experienced mentor from whom you can learn. They might not guarantee profits, but at least they can help you avoid many pitfalls.