Points that novice retail investors must pay attention to! ⚠️
Newbies entering the cryptocurrency world, pay attention! Today, I am sharing some super practical advice to help you avoid detours👇
Morning trends are crucial
Every morning when you wake up, take a look at the cryptocurrency market trends. Just like the sun at eight or nine in the morning, the direction of the market at this time is significant for the whole day. If mainstream coins like Bitcoin steadily rise after the opening, the market sentiment for that day may be relatively optimistic, and other coins may also benefit. But if the market drops continuously after opening, you need to be cautious and not blindly follow the trend. It’s like checking the weather before going out; when it’s sunny, you can play with ease, but on a rainy day, you need to bring rain gear.
Diversify investments, don’t put all eggs in one basket
Never dive headfirst into a single coin. Mainstream coins like Bitcoin and Ethereum can serve as a stable foundation; they are like the “anchor” in the investment world with relatively small fluctuations. Pair them with some potential emerging coins, but don’t invest too heavily, just like having a meal: fill up on the main dish and try out the side dishes. Diversifying your investments can help you reduce risks; even if one coin “crashes,” others can still hold the fort.
Learn technical analysis, but don’t trust it completely
K-line charts, MACD, KDJ, and other technical indicators should be learned; they are your little assistants in understanding the market. K-lines can tell you past price trends, and MACD can help judge buy and sell signals. However, technical analysis is not infallible; the cryptocurrency market changes rapidly, and sudden news or policy changes can break existing trends, so you can’t rely on them entirely; they should only be used as a reference.
Maintain a stable mindset, don’t be swayed by emotions
In the cryptocurrency world, a day is like a year in the human world; this saying is truly not false! Price surges and drops are too common. When you see prices rise, don’t get carried away and chase after the highs; when prices drop, don’t panic and sell at a loss😞. Maintain a calm mindset and treat investment as a long-distance run, not a sprint. For example, during the initial outbreak of the pandemic in 2020, Bitcoin’s price fell significantly in a short time, and many investors rushed to sell out of fear. However, those who remained calm and stable were able to analyze the macroeconomic situation and not only avoided panic selling but also seized the opportunity to buy at lower prices😉.
😨 There are risks in the cryptocurrency world; invest with caution. Newbies should take their time, learn more, and accumulate knowledge. I wish you a smooth investment journey in the cryptocurrency world😎!
