1. Investment in the cryptocurrency market is not as simple and easy as many people imagine; it requires spending more time and energy on research. Investing is a mentally demanding activity, regardless of which cryptocurrency you are dealing with.
Investment in the cryptocurrency market emphasizes technical analysis: cryptocurrency technical analysis is a method of predicting price changes and future market trends by studying past market behaviors. Technical analysis includes hundreds of technical indicators and trading tools, making it difficult for traders to use all trading tools; they can only flexibly master based on actual situations. There is no method that is foolproof, and even the same method can be interpreted differently by different investors.
2. Investment in the cryptocurrency market has certain regularities. What entry-level investors in the cryptocurrency market need to do is to clearly understand and master these regularities and use them to gain profits. Therefore, in daily cryptocurrency trading, one must look for the existence of such regularities. I have summarized two key trading regularities in the cryptocurrency market:
1. Trends and cyclicality. Over a certain period, prices have certain structural trends. For example: long-term trends, medium-term trends, and short-term trends. Trends across different time structures can influence and constrain each other. In cryptocurrency trading, due to different trading cycles chosen by investors, the importance of trends across different time structures varies for different investors.
2. Market psychological characteristics. The essence of price movement lies in the fluctuating dynamics of supply and demand forces. Psychological analysis is based on the repetition of human behavioral patterns, seeking the recurrence of psychological changes. Modern investment psychology research has found that investor psychological activities exhibit certain fixed patterns, which are reflected in price formations.
3. I believe everyone knows that investment in the cryptocurrency market has high returns; however, relatively speaking, it is also a high-risk investment approach. Although the returns are high, not all investors can be beneficiaries. Therefore, one should never use money needed for living expenses to trade cryptocurrencies, nor should one use essential living funds for cryptocurrency trading.
Regarding the allocation ratio of investment funds, I suggest the following distribution: 40% of funds for investment; 30% for living expenses; 20% for savings; and 10% for purchasing insurance. However, as each family's actual situation varies, and financial needs change over time, this ratio should be taken as a reference for flexible and reasonable allocation.
4. A proper mindset is the most important aspect when starting investment in the cryptocurrency market. Those who are easily emotional and impulsive are not suitable for cryptocurrency trading. In contrast, individuals with a calm, rational, and thoughtful demeanor are fit for investment, as they can view the fluctuations in the trading process, including losses and profits, with a level-headed perspective. The vast majority of novice investors face two serious issues: a lack of necessary foundational knowledge and poor investment mindset. Just like studying for investment, having a good mindset is essential for navigating life successfully.

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