5 Tips for Beginners:
1. Start with a small amount of capital, and never go all in
Beginners should always start with a small amount of capital when trading cryptocurrencies; never invest a large sum all at once. The volatility of digital currencies is very high, and if the market moves against you, it is easy to face liquidation or get trapped in losses. Start by learning, observing, and practicing, controlling risks first, and gradually accumulating experience.
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2. Only trade coins you understand, and avoid blindly following trends
Newbies should avoid following the crowd and listening to KOLs (Key Opinion Leaders). It is recommended to only operate on coins that you have researched and understood their underlying logic and value. At the very least, know what they do, who is promoting them, and whether there are any unlocking risks; otherwise, you may fall victim to the project teams.
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3. Learn to analyze trends, and avoid frequent trading
Trends are king; trading in a volatile market can lead to losses. Beginners should focus on learning trend analysis, accompanied by simple technical indicators (such as MACD and candlestick patterns). Frequent short-term trading can deplete your capital due to fees and slippage, and it’s also easy to be controlled by emotions.
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4. Set profit and loss limits, and plan your entry and exit
Before making any trade, you should plan: what your target price is, how much you will stop loss, and how much profit you aim to take. Strictly adhere to it and do not change it arbitrarily. This can help avoid emotional trading, reduce drawdowns, and gradually establish a robust trading system.
5. Avoid chasing highs, and allocate positions reasonably
Do not impulsively chase prices when they suddenly spike; many times, it is a trap set by market makers. The ideal approach is to dollar-cost average and position yourself when the market is sluggish, gradually establishing a cost advantage. Also, split your positions and do not buy everything at once, leaving yourself room for adjustments.
Finally, wishing everyone to earn more and find their own goddess $BNB .
