How can beginners become stronger in the crypto circle?
If you don’t have much and want to invest in crypto, there’s a simple method that can help you continuously.
As long as you master this method, the subsequent #traders can earn 3%-10% more.
Below, I will share the lessons I’ve learned over the years with you.
1. Don’t be greedy, start with one or two coins. The #crypto market has plenty of virtual currencies like stars, with dozens to hundreds available, but we small retail investors have limited energy and money. Don't think about trying everything; it’s best to focus on 1-2 coins, a maximum of 3.
2. When prices are skyrocketing or plummeting, don’t act rashly. When the market is surging, do you feel like this coin will double, and all you think about is quickly investing more? Conversely, during a market crash, you feel like it’s over and sell quickly! In such times, it’s easy to make foolish decisions when panicking. I suggest that when the fluctuations are extreme, don’t act, calm down and assess the situation again.
3. Don’t invest all your money at once; keep your mindset stable. It’s best to keep 30%-50% of your capital on hand. This way, if prices drop, you can buy more, and if they rise, you can also add to your holdings. If you invest too much, you’ll be happy when prices rise but panic when they fall. When your mindset collapses, your decisions will become distorted. Leave yourself some room to maneuver.
4. Take your profits and run, don’t be greedy, accept losses. When trading crypto, set a target for yourself, such as selling after a 20% gain, regardless of whether prices continue to rise afterward. Many people want to earn just a bit more and end up losing everything. Greed is human nature, and you must control yourself. The same applies during losses; set a bottom line, such as cutting losses at 10%. Don’t hold on stubbornly; many trading platforms allow you to set automatic buy/sell orders. Set the price and let the computer handle it; don’t rely on yourself to make decisions in a moment of panic.
5. Learn some technical skills; don’t rely entirely on others. Many people in the crypto circle do not have a financial background; they might be programmers or homebodies who want to earn some money but understand very little. Rather than listening to others’ blind hype, spend a few days learning technical analysis, such as reading candlestick charts and moving averages. Having your own understanding is better than anything else.
6. Take your time; don’t go all in or liquidate everything at once. Whether buying or selling, don’t do it all at once. For example, if you want to buy 10 bitcoins, spread it over 5 transactions, completed in an hour or over a few days. This reduces risk and prevents you from crashing due to impulsive decisions. Steady and gradual is the way to long-term success.
In conclusion: Bitcoin is most afraid of being driven by emotions. Making decisions with your own mind is the key to making money.
