Before doing anything, first understand yourself, then decide whether to enter the market. This is especially true in the cryptocurrency world; it never favors impulsive people, only those who remain clear-headed.
Many people rush in wanting to make money without even understanding what blockchain is, how wallets work, or what Gas is for. In the eyes of others, you are just a walking liquidity. Don’t be easily swayed by phrases like 'rush in with me' or 'bet it all with your eyes closed'; first, solidify your foundations. Learn as much as you can about tutorials, market logic, and on-chain common sense. How far you can go in the cryptocurrency world depends on how much knowledge you have.
There are many ways to play—spot trading, contracts, dollar-cost averaging, arbitrage—but the key is never which one is the most profitable, but which one you can handle. Those who are impatient may chase highs in spot trading, while those with unstable mindsets may get wiped out in contracts. First, understand how much volatility you can withstand, then choose your path. If the path is wrong, the more you struggle, the faster you will lose.
Losing money is mostly because of a lack of planning. Before entering the market, you must be clear about why you are buying, how long you plan to hold, where you must set stop losses if it drops, and where you must take profits if it rises. If you don’t have these in mind, the market will arrange it for you, and the outcome is usually not pretty.
Another particularly important point is whether you can hold on to your position; this is truly the dividing line between seasoned players and retail investors. It’s quite normal to have a 40-point rise today and a 30-point pullback tomorrow. The more you stare at the screen, the easier it is for your emotions to lead you, making it harder to make big money. True big market movements are prepared for those who can understand trends and hold positions.
Lastly, let’s talk about risk management; this is not advice, it’s the bottom line. Don’t go all in, don’t put all your eggs in one basket, and don’t use living expenses to gamble. Keep the bulk in mainstream assets, and cautiously explore smaller caps with small positions. The money at home shouldn’t be touched, and borrowed money should be avoided altogether. What keeps you at the table is always risk management.
One last very realistic statement: the cryptocurrency world is a place of high volatility, high risk, and high information asymmetry. If you want to make money, you first need to learn to stand firm. To stand firm, you must learn not to lose everything. Only those who can survive have the right to talk about making money; the rest mostly just pay tuition to the market.
I am Lao Zhang, skilled in mid-to-short-term contracts and mid-to-long-term spot layouts, sharing investment tips and detailed strategy teaching points daily. Friends who don’t understand can always reach out to me for communication!
