Provide the following five pieces of advice for newcomers in the cryptocurrency space: prioritize risks and strictly control funds: fully assess your own risk tolerance before entering the market, allocate funds reasonably, avoid going all-in, and consider a phased investment strategy to reduce risk. For example, divide funds into multiple portions and gradually buy at different price levels to avoid over-investing at once and becoming passive.
Understand the cycles and act accordingly: conduct in-depth research on market cycles (such as bull and bear transitions), actively position during bull markets to seize profit opportunities; remain cautious during bear markets and control your positions. Use weekly and daily charts to judge trends and avoid counter-trend operations, such as buying on dips in an upward trend or shorting or observing on peaks in a downward trend.
Technical analysis, multidimensional integration: do not rely on a single technical indicator; comprehensively use moving averages, MACD, KDJ, etc., to improve decision-making accuracy through multi-indicator resonance. At the same time, pay attention to volume-price relationships (for example, if an increase is accompanied by high volume, the momentum is strong; if volume decreases, be cautious of adjustments) and chart patterns (such as head and shoulders indicating trend reversals).
Research the fundamentals to grasp the core: gain a deep understanding of project team backgrounds, technical strengths, application scenarios, and other fundamental information, while paying attention to industry policies and major players' movements. For example, when favorable policies apply to certain digital currencies, you can explore related quality projects; at the same time, assess community activity levels and governance to judge long-term project potential.
Maintain a steady mindset and overcome greed and fear: keep a calm attitude, do not be arrogant when making profits, take profits in time, do not panic when facing losses, and decisively cut losses. Overcome greed (do not blindly pursue excessive profits) and fear (not daring to buy at the bottom or sell at the top), insist on independent thinking, do not be influenced by market noise or others' opinions, and trade according to your established strategy.
Prioritize mental preparation for trading; avoiding arrogance and impatience is the most important.