Nine Key Points for Making Money in the Cryptocurrency Market
Here are my insights from over 10 years of achieving financial freedom: Nine key points for making money in the cryptocurrency market
1. Don't Rely on Luck If you make money more often than you lose, and your account is slowly growing, it means your method is correct. But if you made money nine times and lost everything once with a heavy investment, be cautious. Avoid going all-in casually; if you're wrong, cut your losses promptly and adjust your strategy.
2. Trust Your Judgment Sometimes you might be right, but after listening to others, you change your mind and end up losing. Investments require your own opinions; the ones who make money in the market are often the minority.
3. Learn to Spot Trends The cryptocurrency market has ups and downs; following the trend makes it easier to make money, and operating against the trend carries significant risk. Learn technical analysis to improve your market judgment skills.
4. Control Risk The cryptocurrency market is highly volatile; don't go all in at once. Start with a small position to test the waters, and increase your position only if the trend is right. Set stop-losses for every trade, avoid greed, and don't hesitate.
5. Be Patient for Opportunities Don't rush to buy just because prices have risen; find the right entry point. It’s better to miss out than to make a mistake.
6. Exit When Necessary Take profits when your target is reached; don’t aim for more, as it may lead to losses. Be decisive in cutting losses as well; don’t fantasize about breaking even; preserving your capital is essential to continue trading.
7. Maintain a Good Mindset Investing is not a one-day affair; it’s normal to have both gains and losses. Regardless of whether you’re making money or losing, stay calm, summarize your experiences, and over the long term, you'll achieve stable profits.
8. Pay Attention to News and Technology Sometimes a significant piece of news can drastically change the market, so don't just focus on technicals; keep an eye on market dynamics as well.
9. Only Invest Spare Money Borrowing money to trade cryptocurrencies adds pressure and can lead to chaotic trading. It's best to use money that doesn't affect your living expenses to trade, as this keeps your mindset stable and your operations more flexible.
