I copied this from a follower, I thought it was pretty cool.
Lesson 3 - CHOOSING COINS
I see many newcomers sharing their wallets, and when I look, there are 10, 15 different coins. This is a common mistake among beginners. If you still DO NOT know how to analyze a single chart, identify supports and resistances, how do you plan to track 10 different projects?! Think about it!
———SO, LET'S TAKE NOTES (tips for newcomers)👇🏽🥷
1. CHOOSE A FEW COINS AND STUDY:
Avoid excessive diversification; three well-chosen coins are enough to start. Option:
✅ #BTC – The most solid asset in the market, with a history of appreciation and global acceptance.
✅ Two consolidated coins – Well-established projects, with solid structure and good acceptance.
HOW TO CHOOSE???
• PROJECT - What problem does it solve? Does it really have utility?
• PARTNERS - Who is behind the development? Are there big companies supporting it?
• APPRECIATION POTENTIAL - Does the asset already have a history of growth or is it still in the early stages?
• MARKETING AND DEVELOPERS - Is the development team active? Are there new updates being released?
AVOID MEME COINS AND LAUNCH COINS IF YOU ARE A NOVICE AND DO NOT KNOW RISK MANAGEMENT.
‼️ REMINDER: the final decision is yours! Your money, your wallet, your responsibility. The role of an analyst is to provide information and insights, but the one who decides where to invest is you. ‼️
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2. ONLY INVEST WHAT YOU CAN LEAVE IDLE:
Another common mistake is investing money from your accounts. Cryptocurrencies are high-risk, high-volatility assets. That is, just as they can appreciate a lot, they can also go through strong drops before rising again.
🚩 Never invest money from your monthly accounts (rent, food, debts).
🚩 Use only a percentage of your available capital - A good strategy for beginners is to invest between 5% and 10% of your free capital.
🚩 Be patient - The return can come quickly or take months or years. Invest only what you can leave idle without anxiety.
EXAMPLE:
- You have $10,000 available (outside of your expenses).
- Decides to invest 10% in cryptocurrencies = $1,000. Distributes this amount between BTC and two other solid coins.
- The rest of your capital you keep for occasions like unforeseen events.
- WAIT! The market always seeks a drop or enters a long correction period... This will be an opportunity to position yourself! PATIENCE!
- Now, let the market work! No panic to sell at the first drop.
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3. THE PROBLEM OF HAVING TOO MANY COINS
‼️ If your capital is small, you may end up NOT having a significant volume in any consolidated asset.
‼️ The profit from one coin can be consumed by the losses of others.
‼️ It becomes impossible to track so many charts and news at the same time.
‼️ You increase the chances of making poor decisions due to panic or lack of information.
Now, imagine that you concentrate your $1,000 in just three well-chosen coins. You will have stronger positions, be able to better track the assets, and make decisions with more confidence.
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4. MEDIUM AND LONG-TERM THINKING
With a well-structured portfolio, your money starts to work for you. In the beginning, there will be fluctuations and even drops. BUT over time, if you are well positioned, you will see the assets appreciating more and more.
Be patient and disciplined – Great appreciations happen for those who have a long-term vision.
The more strategy and less impulsiveness, the better your results will be. FOR THOSE WHO HAVE BEEN in this market FOR A DECADE, stay calm with your sea of coins... This lesson is just for the newcomers... hahaha
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1. Like and share with those who are new to this market! 👊🏽🥷🚀
2. Click on the yellows to strengthen the post!