In 2013, I stepped into the cryptocurrency world, starting my trading journey under the guidance of my mentor. During the first six months, I was quite clueless, operating with a capital of 100,000, following my mentor's instructions. I managed to make some profits daily, gradually accumulating my capital to 600,000. However, once I couldn't hold back and started making trades on my own, losses came one after another, earning little and losing much, with my account at one point shrinking by half. At that time, I barely understood the basic terminology and trading rules of the cryptocurrency world, and was completely confused when facing candlestick charts.
I didn't want to rely on my mentor forever, so I asked him how to become an independent investor and how to improve myself. Seeing my sincere intention, my mentor agreed to clarify my doubts. He took a sip of red tea and earnestly said: 'Haste makes waste; you must first lay a solid foundation.' He then introduced the key question of cryptocurrency trading: what influences the price of coins? Who are the manipulators behind it? What are their intentions? What do investors care about most: when will it rise, and by how much? In fact, from the perspective of economics, prices fluctuate around value, and in the long run, most cryptocurrencies have little value and will ultimately go to zero. My mentor asserted that as long as I summarize my own methods and execute them strictly, turning things around wouldn't be difficult. Now, I will share my insights on cryptocurrency trading.
First, cultivate a good investment mindset. After spending a long time in the cryptocurrency world, many people initially invest 2000 to test the waters, but then they get deeper and deeper, using credit cards and loans. I was once like this, even feeling it was a pity to leave my credit card limit unused and buying cryptocurrencies instead. This is a huge mistake; this is no longer investment, but gambling. The cryptocurrency market may be full of twists and turns, similar to a casino, but remember: small bets are for enjoyment, while big bets can be harmful. Don't envy others' hundred or thousand times returns; those are just a minority. The right path is to consolidate steadily, wait for a 1.5 times return before waiting for it to double. Also, don't keep your eyes glued to price charts, blindly chasing after rises and falls. If newcomers do this, they will be quickly eliminated by the market, after all, life is not just about cryptocurrency, there are also family and friends.
Second, plan reasonable finances. I suggest beginners only invest one-tenth of their funds, with a maximum of 20,000. First, reserve 30% as bottom-fishing capital; this is essential. Distribute the remaining funds and select about five types of cryptocurrencies to place orders, then don't pay attention to them anymore; focus on learning and improving. Don't underestimate this 20,000; in my QQ group, there are two people who entered with this amount, one of whom now has a coin value exceeding 3 million, and during good market conditions, over 6 million. The key is to enter early and have the right strategy.
Third, build a scientific allocation. Some ask which coins to choose; my principle is to avoid platform coins and forked coins. Platform coins are subject to trading restrictions, and if there are changes on the platform, the value of the coins is concerning; forked coins raise technical doubts; if a team has the capability, why fork? They can simply create a new public chain. My advice for beginners is to never go all-in; focus on gradually building positions in five types of coins, reserving 30% of the funds to buy a certain coin. If it rises, you profit; if it drops, then buy in three stages when the timing is right, after all, funds are limited. In summary, finding the right rhythm and strictly adhering to the strategy will allow you to carve out a niche in the cryptocurrency world.
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