Over these years of struggling in the cryptocurrency world, my investment strategy has been like a roller coaster, experiencing multiple major shifts. Each change has been accompanied by the ups and downs of the market, deepening my understanding of this unpredictable field.
At first, I dove headfirst into the cryptocurrency world with a vision of financial freedom; at that time, my strategy was simple and crude—investing by following the crowd. Watching Bitcoin's price soar, and seeing many around me making huge profits, I invested a significant amount of money without a second thought. At the same time, I followed the trend of buying various popular altcoins, fantasizing about catching the next hundred-fold coin. The market was in a bull phase, and it seemed that anything bought could make money; this effortless profit made me feel overly confident, as if I had found the key to wealth.
Good times do not last long; the market took a sharp downturn, entering a prolonged bear market. The value of the coins I held plummeted, and my paper losses grew increasingly severe. The harsh reality taught me a lesson, making me realize that blindly following the crowd is not advisable. After reflecting on my pain, I began to study technical analysis, researching various indicators and charts, attempting to predict market trends through technical means. During that period, I spent a lot of time every day monitoring the market, analyzing candlestick charts, MACD, KDJ, and other indicators to make buying and selling decisions based on these analyses.
However, technical analysis is not infallible. The market is full of uncertainties, with black swan events occurring frequently, making it difficult to accurately grasp market changes relying solely on technical indicators. Sometimes, even when technical indicators suggest that the market should rise, it suddenly plummets. After experiencing multiple setbacks, I gradually understood that technical analysis is merely a supplementary tool and cannot be the sole basis for investment decisions.
As I deepened my understanding of the cryptocurrency world, I began to pay attention to the fundamentals of projects, studying project white papers, team backgrounds, technical strengths, application scenarios, and so on. I realized that only truly valuable projects can stand the test of time in the market. Therefore, I turned my attention to blockchain projects with practical application value, investing in those committed to solving real problems, with innovative technologies and strong team support. At the same time, I also began to focus on diversified investments, no longer concentrating all my funds in a few currencies to reduce investment risk.
In addition to fundamental analysis and diversified investment, I have also learned to control my positions and set stop-loss orders. Based on market conditions and my own risk tolerance, I allocate funds reasonably to avoid full-position trading. When the price of a coin drops to a certain level, I decisively cut losses to preserve my capital and prevent further losses.
Looking back at these years in the cryptocurrency world, my investment strategy has evolved from initially following the crowd blindly, to later utilizing technical analysis and fundamental research, and now to a comprehensive application of various methods. Each transition is the result of continuously summarizing experiences and lessons learned through the trials of the market. This process has been filled with hardships, but it has also brought me significant gains. In future cryptocurrency investments, I will continue to maintain a learning and cautious attitude, constantly optimizing my investment strategy to respond to market changes.
