How to Survive Safely in the Cryptocurrency World
Regarding position management, I suggest everyone: allocate large positions to mainstream coins and small positions to smaller coins.
The former leans towards value investing; if you hold long, you can outperform the market, enjoying the dividends of continuous industry development. More importantly, during bear markets or when major negative news occurs, they often decline the least, showing high resistance to downturns. Even if they drop, they rebound quickly, have high liquidity, and there are no concerns about liquidation issues.
The latter leans towards speculation and gambling, betting on those explosive coins that can multiply tenfold or a hundredfold; finding a thousandfold is rare. Treat that money as if you bought it and lost it, don’t shuffle your positions around, instead, enjoy the dividends of industry explosions. You can cast a wide net here, buying several varieties with smaller amounts, but you need to set goals: how many times to exit the principal, how many times to exit a certain proportion, and execute firmly. These coins, once they grow, become mainstream coins; if they don't grow, they remain trash. Case in point: a fan of Bitcoin Era bought $100 of each coin with closed eyes, and a year later had over $500,000, hitting on a thousandfold coin like Ripple, and a bunch of hundredfold coins...
Why take such positions?
1. This position configuration may not be the best, but I believe it is a good way to achieve the highest profits under relatively controlled risk. Avoid greed; prioritize safety. A more prudent approach is to withdraw part of your principal after the coin doubles, gradually reclaiming your capital and letting profits grow on their own. Especially with smaller coins, cashing out during a bear market can be challenging, so prepare an umbrella for stormy weather when the sun is shining.
Regarding position switching, in a bull market, grasping 1-2 coins can be sufficient; this earns you more than constantly searching for new coins and frequently switching positions.
For building positions, I suggest beginners carefully research the top 50 coins by market capitalization. You will have your own judgment without needing to listen to news or be swayed by recommendations... it’s that simple and effective. Building positions is also quite nuanced, and I could elaborate for several days, but I won’t go into detail here. Some principles include:
1. Don’t touch what you don’t understand
2. Plan ahead
3. Be cautious in chasing highs
4. Don’t listen to the news
If you reverse these four points, there’s a 99% chance of failure.
All of the above is based on the premise of capital safety. Without capital safety, everything is empty talk. Choosing a reliable trading platform is especially crucial. Seasoned investors know which platforms have dark histories and what kinds of teams they involve, but new investors often don’t understand or know.