In the field of cryptocurrency investment, an experienced content creator shares his investment screening and operational framework accumulated over eight years, aimed at helping investors, especially beginners, make better investment decisions. He summarizes five important investment rules, which are both the experiences that have led to his profits and the lessons learned from his losses.
First, he advises investors to prioritize selecting 'old coins,' which are those that have been around for several years and have gone through complete bull and bear cycles. Old coins are usually listed on multiple well-known exchanges, have higher market recognition, and larger trading volumes. In contrast, new coins often come with many uncertainties. For example, some new coins may have a very high price upon issuance, but over time and with market dilution, the price may drop significantly, making it difficult for investors to recover. Therefore, choosing old coins can effectively reduce this risk.
Second, he emphasizes the importance of entering the market at historical lows. By analyzing historical price trends, investors can buy at relatively low prices, thus avoiding buying in at highs. He takes the APT project as an example, pointing out that investors who buy at historical highs often find themselves stuck, while those who patiently wait for prices to pull back to historical lows have a higher chance of achieving substantial gains.
The third rule is to accumulate positions in a diversified manner. Investors should not invest all their funds at once but should gradually buy in batches. This can effectively lower the average cost and reduce risks from market fluctuations. He shares his experience of accumulating positions in Polkadot at ten dollars and five dollars, noting that even when he was unable to timely take profits later, the strategy of diversified accumulation helped him avoid significant losses.
The fourth rule is diversification of the investment portfolio. Investors should not concentrate their funds in a single cryptocurrency but should build a diversified portfolio. This can balance the risks and returns of different cryptocurrencies, while appropriately adjusting the proportions of cryptocurrencies in the portfolio according to market heat and price trends. For example, when a cryptocurrency rises to its median price due to increased interest, it can be appropriate to reduce holdings and transfer funds to other cryptocurrencies with greater potential.
Finally, he reminds investors to take profits reasonably. During the investment process, do not try to earn the last penny, but timely realize profits within an appropriate price range. He shares his experience of buying ABX at eight dollars and taking profits at twenty dollars, pointing out that although it later rose to fifty dollars, he still feels satisfied with his actions because he bought at a historical low and took profits at a reasonable position.
The experiences shared by this content creator provide valuable references for investors. He advises investors to carefully study these rules before investing and to continuously summarize experiences in practice to improve the success rate of investments. At the same time, he also reminds everyone to pay attention to the dynamics of the cryptocurrency market, making wiser investment decisions by combining fundamental and technical analysis.
