Share a few practical tips for trading cryptocurrencies to help you avoid detours:
1. Invest only with spare money: This is a hard rule. Cryptocurrency trading is risky, so do not use essential living funds. If you lose, it won't affect your life, and your mindset will remain stable.
2. Don't blindly chase highs: When a coin surges, don't act impulsively. After a surge, there is often a correction. It's easy to get trapped by chasing highs, so wait for a correction before reassessing.
3. Learn to read charts: Master candlestick charts, understand support and resistance levels. Technical analysis can assist in judging the timing for buying and selling.
4. Control your position and enter in batches: Don't invest your entire capital at once. Buying in batches can diversify risk and allow for flexible adjustments to reduce the chance of being trapped.
5. Set stop-loss points: No matter how optimistic you are, you must set stop-loss points. This is key to protecting your principal. Sell decisively if the stop-loss is triggered.
6. Do your homework: Understand the project's background, team, and technology. Having sufficient information enables rational decision-making.
7. Maintain patience: Trading cryptocurrencies is not a way to get rich overnight. Avoid frequent trading; holding quality coins for the long term is more likely to yield good returns.