The coin circle is not a casino to get rich overnight, but a proving ground for cognitive realization. Those veterans who have lived through three rounds of bulls and bears rely not on luck, but on the awe of risk and iron-like discipline. Remember: In the coin circle, living long is more important than earning fast
As a newcomer to the coin circle, what should you pay attention to in the process of trading coins? This year, the cryptocurrency market is getting better, and many newcomers are beginning to emerge in cryptocurrency, but the gameplay of the cryptocurrency market is not simple. If you don't understand cryptocurrency clearly, it is easy to lose all your money. So, how should novices participate in cryptocurrency investment? What should novices pay attention to when trading coins? Below, the script home editor will give you a detailed introduction to the precautions for novices to trade coins!
Frequent losses and being trapped, have you found the reason behind it?
No matter how many points you are trapped, you can solve it reasonably, choose a suitable point to enter the market to make up for the loss, and turn passive into active.
The first is to make the following judgment based on the holdings in hand
(1】Investors who are lightly trapped can use the rebound market to unlock and exit the market, or reduce their positions at a high level
[2】Investors who are trapped at a high level can also make operations to reduce their positions at a high level, so that they can occupy the initiative in terms of psychology and funds in the next wave of the market. The first is to make the following judgment based on the technical state
[1] If you are trapped at a high level, you must stop the loss immediately. [2] If you are trapped in the middle, you can temporarily wait and see according to the situation at that time to seek to unlock and leave the market or reduce your positions at a high level to reduce losses [3] If you are in a low position, there is no need to rush to stop the loss. You should dare to replenish your positions at a low level after the species you bought falls and stabilizes at important support levels, spread the cost, and rescue the positions trapped at a high level together in the upcoming rebound market.
The third is to make the following judgment based on the trend state [1] If it is in an upward trend, there is no need to stop the loss. Hold it patiently for a period of time, and it will inevitably be unlocked, and there may even be a greater profit. [2] If it is in a balanced and oscillating trend, there is no need to stop the loss immediately. Wait patiently for the coin to enter the oscillating cycle high. Once it is unlocked or the loss is very small, immediately leave the market decisively.
3】If it is in a downward trend, once it is confirmed that the downward trend has formed, stop the loss immediately, and never be concerned about gains and losses and have illusions. Any hesitation and hesitation may be exchanged for a deep trap that is difficult to extricate yourself from.
For reducing or cutting losses after being trapped, investors must be ruthless and decisive when doing such operations, especially in a downward trend. Many investors have this kind of operating experience. After being trapped, they look forward to unlocking every day. Finally, when they wait until one day to unlock, they are not reconciled: I have held it for so many days, how can I earn some money? .吉果 missed the best opportunity to close the position, and when the market re-entered the decline, it was trapped again. In the end, they were completely desperate, lost confidence, and cut their losses and exited the market. This is the most taboo in a downward trend.
After being trapped, no matter what, it is a passive operation. Although unlocking is a basic skill that investors must master, investors should focus more on before being trapped and try to improve their analysis skills and operating level to minimize the number of times they are trapped and always occupy the initiative in terms of funds and mentality. This is the most important thing.
Coin circle investment essentials: 10 practical experiences to help you avoid 90% of risks
Rule 1: Learn to "afford to lose" before thinking about "getting it"
Always remember: Only invest money that will not affect your life if it is lost!
Wrong example: Mortgaging a house to speculate in altcoins, borrowing to leverage to gamble on contracts.
Correct operation: Divide the investment amount into 10 parts and invest regularly every month. Be happy when it rises and add positions when it falls.
The truth: The volatility of the coin circle is 10 times that of the stock market! In the past 5 years, more than 300 "star projects" have gone to zero, including the former "coin circle Moutai" Luna.
Rule 2: Block out noise and focus on value information
99% of group messages are poison
: Bookmakers fishing, KOL shouting orders, fake news flying around.
1% of key information to see these
Project whitepaper (focus on token distribution and economic model) GitHub code update frequency (directly blacklist zombie projects) On-chain data (transaction volume, position distribution)
Rule 3: Don't be a gambler! Be an asset allocation master
Iron law
"Holdings of a single coin ≤ 15%, BTC/ETH ratio z50%!
Data
In 2023, the loss rate of contract users is 97%, and 83% of spot long-term holders are profitable.
Tool recommendation
: Use Portfolio Tracker to manage positions and set dynamic take profit and stop loss lines,
Rule 4: Contract = legal gambling, newcomers die upon touching it
Bloody data:
The average survival cycle of Binance contract users is <45 days, and 85% of those who liquidate their positions lose more than 3 times their principal! Alternative:
Play spot grid trading in the bear market
DeFi stream currency holding is short of names and the ratio of Dingri is lower than t Loss)
Rule 5: Beware of the "Local Dog Trap"! You are staring at the interest, and others want the principal
Typical routines:
False publicity "XX VC investment"
Robot brushing volume to create heat
Sudden pull to attract takers, withdraw the pool and run away within 30 seconds!
Avoidance guide:
. Directly ignore new coins with a market value <50 million US dollars
. Blacklist projects with anonymous teams/no GitHub
Sudden "airdrop" and "lock-up return" activities must be pits!
Rule 6: Regularly invest in the bear market and harvest in the bull market - you can only win if you go against human nature
Historical iron law:
. People who regularly invest in BTC in the 2018 bull market will have a rate of return of 4200% in 2021!
85% of retail investors take over in the late stage of the bull market, eventually losing more than 60%!
Practical strategy:
Regularly invest 5%-10% of your salary in the bear market
· Take profit in 3 batches in the bull market (increase of 50%, 100%, 300%)
Rule 7: Luck ≠ strength! Survivor bias kills people
Classic case:
In 2021, someone bought SHIB for 500 yuan and turned it into 500,000, and in 2022, All in Luna was destroyed...
A trader made 10 consecutive profitable contracts, and the 11th liquidation resulted in a debt of 800,000!
Sober knowledge:
Pigs can fly in the bull market, but 90% will fall to their deaths when the wind stops!
Forcefully withdraw 50% of the principal to the cold wallet after each profit!
Rule 8: Frequent trading = working for the exchange!
Amazing data:
The average trading frequency of retail investors in the coin circle is 18 times that of institutions, but the rate of return is 72% lower!
Transaction fees + slippage may swallow 30%-50% of profits!
Solution:
堎琼誣須袜鬯趣笮賤鐨犍佶凰船置“30-day cooling-off period” (write it down first when you want to trade, and look at it again after 30 days)
Use DCA (Dollar Cost Averaging) strategy
Rule 9: The real wealth password: hold Bitcoin!
Historical iron law:
In each round of bull market, the BTC increase has never been less than 10 times!
90% of altcoins cannot beat BTC!
Data:
From 2013 to 2023, the annualized rate of return for holding BTC is 234%!
S&P 500 only 12% during the same period!
Rule 10: Always respect the market! Continuously evolve cognition!
Cruel truth:
There are no ever-victorious generals in the coin circle! CZ and SBF have both overturned!
Black swan always exists: exchange thunderstorms, policy changes, technical loopholes... Finally, a word:
The coin circle is not a casino to get rich overnight, but a proving ground for cognitive realization.
Those veterans who have lived through three rounds of bull and bear markets rely not on luck, but on the awe of risk and iron-like discipline.
Remember: In the coin circle, living long is more important than earning fast!
I have been trading coins for 10 years, from big losses to big gains, and summarized 10 iron rules
1. The hottest coins in the bull market fall the fastest
Those coins that are hyped up, especially projects with serious control, often have bubbles that burst quickly. The more coins that attract a large number of retail investors to chase the rise, the greater the risk. Like blowing a balloon, the bigger it is blown, the faster it breaks. Popular coins in the bull market are often the favorites of short-term speculators, but they are also the easiest traps to lose all your money.
Recommendation: Don't blindly chase the rise, especially those coins that have risen sharply in a short period of time. Stay calm and avoid becoming a "taker"
2. The routines of altcoins are almost the same. The gameplay of altcoins is usually to smash the market first, create panic, then slowly pull up to attract retail investors to enter the market, and finally change the way to continue harvesting. This routine works repeatedly, and novices are easily cut off. Recommendation: For altcoins, you must be psychologically prepared, don't be fooled by short-term gains, and don't
Easy to overweight. 3. The long-term trend of the market is upward. Although the short-term fluctuations in the coin circle are violent, if you look at the long time line, the overall trend is upward. The historical trend of mainstream coins such as Bitcoin and Ethereum has proven this. Recommendation: If you are a long-term investor, don't be scared by short-term ups and downs, hold high-quality assets patiently, and time will give you back
Report.
4. Coins with potential are not hyped. Truly potential coins are often unknown at the bottom, and few people mention them. And those coins that are crazily hyped are often tools used by bookmakers to harvest. Low-key coins may suddenly explode at some point. Recommendation: Pay more attention to projects with solid technology and reliable teams that have not yet been hyped by the market. They may be future dark horses.
5. Be careful of newly launched coins. Newly launched coins on the exchange, especially those that rise and fall sharply, are often traps designed by bookmakers. These coins usually have no actual value support and are purely for harvesting leeks. Recommendation: For new coins, especially those with huge fluctuations in the early stage of launch, be vigilant and don't easily enter the market.
6. Ups and downs are normal. It is normal for the price to fall after buying and rise after selling in the coin circle. The market volatility is extremely high, and short-term ups and downs cannot fully reflect the value of a project. Recommendation: Maintain a good attitude, don't panic because of short-term fluctuations. Develop your own investment strategy and implement it strictly.
7. The most fierce rebound does not represent potential. The coins that rebound the most fiercely are often not the ones with real potential, but the speculative disks that are hyped up. The rise of this kind of coin usually lacks fundamental support, and it rises quickly and falls quickly. Recommendation: Don't be fooled by short-term surges. Truly potential coins usually fluctuate relatively smoothly and have a long-term upward trend.
8. Be careful of being cut off by sudden callbacks. If the price of a coin you bought suddenly callbacks after rising, this may be a signal that the bookmaker is starting to ship. Bookmakers usually attract retail investors to enter the market by raising prices, and then sell at high levels. It is recommended that you take profits or stop losses in time when you encounter sudden callbacks to avoid becoming the bookmaker's "taker"
9. Coins that explode in the second half of the bull market. In the bull market, coins that perform generally in the early stage may explode several times or even more in the second half. These coins are like marathon runners, accumulating strength in the early stage and exerting strength in the later stage. Recommendation: Don't ignore those projects with solid fundamentals that have not been hyped by the market in the early stage. They may be dark horses in the later stage of the bull market.
10. Coins that have been consolidating for months may explode. In the bull market, some coins may consolidate for months after experiencing several times their gains. This consolidation is usually the bookmaker accumulating strength, waiting for the opportunity to explode in the next wave. Recommendation: Pay attention to coins that have been consolidating for a long time, they may be the protagonists of the next round of market.
Finally, to summarize: the two key points for survival in the coin circle
If you feel confused or at a loss during the operation, remember the following two points:
1. Strong action: Opportunities are fleeting, and decisive action can seize opportunities.
2. Stay online: Coin circle information is changing rapidly, and it is important to get the latest news and react in time. The coin circle is a challenging market, but as long as you master these iron laws and stay calm and rational, you can find your own opportunities in this market. Remember, investing is a marathon, not a sprint. Patience and strategy are the keys to success!
A ten-year player in the coin circle finally speaks out, how to judge which projects are Ponzi schemes and air coins?
More and more people are choosing to invest in digital currencies now, but many people who invest in digital currencies will lose all their money. Why is this? A big reason is that all the money is invested in air coins. Therefore, in the investment of digital currencies, we must always be highly vigilant and be able to distinguish which are air coins and avoid stepping on pitfalls. So, what are these so-called air coins?
Air coins:
1. Use the founder's background and other achievements to prove the success of this project
2. The project does not focus on technology, but conducts vigorous marketing and puts publicity first
3. The project white paper does not have any technical explanations, all are project future plans
4. The coin price is the only standard for measuring this project
5. Use many marketing methods to increase the coin price, instead of overcoming technical difficulties
Go and see those air coins on the market, and you will find that they have common characteristics, that is, they all have direct referral rewards, as well as pyramid-like hierarchical rewards, so people call this kind of air coin a MLM coin. The purpose of these air coins is to harvest the money in the hands of players. As long as the money is deposited, there is basically no possibility of successful withdrawal.
How do we distinguish which are high-quality blockchain coins and which are air coins? We can look at it from these aspects: Project itself attributes:
Digital currencies can be divided into two types. One is the coin issued by the basic chain project, such as ETH. The other is the coin issued by the on-chain application project developed based on the basic chain, such as the coin issued by the project party on the ETH chain. For these two types of digital currencies, you can check the number of issues, the amount in circulation, and transfer or transaction records, etc. However, you basically cannot find the above points for those air coins. Since the data information itself is extremely opaque, it can be issued indefinitely, which only requires those project parties to move their fingers to complete.
Issuance method,
Digital currencies are mainly traded in two ways. The first is when the project is first issued and publicly sold to the public, and the second is between coin players through exchanges. Air coins mainly obtain rewards by pulling people and developing downlines. Does it look like a pyramid scheme? Or through recharging members of different levels and purchasing different levels of virtual mining rights, you can get them. If you don't give the project team money, the project team won't give you coins, and everything has to be purchased from the project team.
3. Whether to guarantee returns:
The digital currency market has no rules and is very risky because no one can accurately predict whether the price will rise or fall tomorrow, by how much it will rise, or by how much it will fall. Therefore, if the project team says that the price of their coin will only rise but not fall, and will rise to a certain amount in the future, surpassing Bitcoin and creating the first myth in the coin circle; or if you hold a certain amount of coins, you can regularly get dividends from the project team, giving you a certain amount of coins every month, just like depositing money in a bank and giving you interest, then this is very likely to be an air coin.
4. Trading method:
As we all know, digital currencies can be freely traded on exchanges, and exchanges support depositing coins, withdrawing coins, and point-to-point transfers at any time. Therefore, if you find a project that can only be traded on the platform designated by the project party, then be careful. This may be an exchange developed by the project party itself. This kind of exchange created by the project party only has a few coins that you have never heard of, which may be issued by the project party itself. These exchanges that you have never heard of may not be able to withdraw coins, and it is easy to lose all your money.
When is the time to buy and when is the time to sell coins?
Principles for judging the timing of cryptocurrency trading:
Buying timing:
1. Bottom of the fall;
2. Oversold technical indicators;
3. Market sentiment turns good;
4. Buy low;
5. Low-cost dollar averaging method.
Selling timing:
1. Peak of rise;
2. Overbought technical indicators;
3. The market is dominated by whirlpools, and the second book of marriage is equipped with more than 20 lectures. The rhyme but the nickname is the thief, the preface, the Xu Qian ointment, and the window is poor;
4. Profit target;
5. Stop-loss strategy.
Coin trading buying and selling timing:
In the coin trading market, grasping the timing of buying and selling is crucial. Here are some guidelines to help you determine the ideal trading time:
Buying timing:
Bottom of the fall: After a substantial drop in the price of a coin, reaching a support level or forming a reversal pattern such as a double bottom, it is usually a time to buy. Oversold technical indicators: When technical indicators such as the Relative Strength Index (RSI) and Stochastic Oscillator fall to the oversold zone, it indicates that the coin price may have bottomed out.
Market sentiment turns good: Pay close attention to market sentiment. When market sentiment turns from fear to optimism, it may indicate a rebound
Buy low: Buy in batches at lower prices regularly, and reduce risks through the average cost method.
. Low-cost dollar averaging method: Buy at a fixed time or amount when the coin price falls to reduce the average cost. Selling timing:
Peak of rise: After a substantial increase in the price of a coin, reaching a resistance level or forming reversal patterns such as a double top, it is usually a time to sell. Overbought technical indicators: When technical indicators such as RSI and Stochastic rise to the overbought zone, it indicates that the coin price may have peaked. Deteriorating market sentiment: Pay close attention to market sentiment. When market sentiment turns from optimistic to pessimistic, it may indicate a decline. Profit target: Set a reasonable profit target in advance, and sell in time after reaching the target to lock in profits. Stop-loss strategy: Develop a stop-loss strategy and automatically sell when the coin price falls to a specific level to limit losses. Other notes:
Don't blindly chase the rise and kill the fall: Don't be swayed by market sentiment and make reckless decisions to buy or sell
Thorough research: Before trading, conduct thorough research on the project, market, and technical indicators.
Risk management: Never invest more than you can afford, and diversify your portfolio to reduce risk
Patience and discipline: Trading coins requires patience and discipline. Don't rush to make profits or avoid losses.
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