IMPORTANT ADVICE for newcomers to the market:
The cryptocurrency market is highly risky but also full of opportunities. If you want to participate or are trading, here are some important tips:
1. Manage risk closely
- No all-in: Divide your capital, do not put everything into one order.
- Set stop-loss: Always have a clear stop-loss point to avoid significant losses.
- Take profits in parts: Don't be greedy, take profits at each price level.
2. Determine your trading strategy
- Scalping/Day Trading: If you have time to closely monitor the market, take advantage of small fluctuations.
- Swing Trading: Buy when there is a clear upward trend, sell when there are signs of reversal.
- Long-term investing (Hodling): Only apply to coins with good fundamentals like BTC, ETH.
3. Follow news and technical analysis
- Strongly influential news: Decisions from the FED, legal policies, whale buying/selling will significantly impact prices.
- Technical indicators: Learn to use RSI, MACD, EMA, Bollinger Bands to identify reasonable entry points.
4. Control your psychology
- No fomo (fear of missing out): Don't buy at the peak due to hype news.
- No panic selling: When prices drop sharply, consider whether it is a buying opportunity.
- Trading discipline: Always adhere to your plan, do not trade based on emotions.
5. Choose an exchange and secure your account
- Use reputable exchanges: Binance, Coinbase, OKX, Bybit... avoid less transparent exchanges.
- Two-factor authentication (2FA): Always enable two-factor authentication to protect your account.
- Do not keep coins on exchanges for long: If investing long-term, withdraw to a hardware wallet (Ledger, Trezor) to avoid risks.
Wish you courage and success!