In the crypto circle, those who over-speculate often fail, while those who only seek ordinary returns may become wealthy.
Generally, chives have two ways to trade coins:
Short-term trading: Use a larger amount of capital to trade active coins, using stop-loss orders to protect capital and predict coin price trends. If the prediction is correct, wait for the right time to sell. If wrong, sell at the stop-loss point.
However, this approach can lead to psychological issues when encountering sudden drops or missing stop-loss points, causing them to choose to cut losses after being stuck, and potentially resulting in repeated losses after a market rebound. Additionally, it is necessary to determine whether to stop-loss based on different cycle trends (such as weekly, monthly); if not judged scientifically, it may lead to erroneous operations.
So what is value investment: We need to consider the overall direction of the coin's operation, the relationship between coin price and value, and have confidence in the coin's value in the coming months. Correct value investment should be done in batches, without being misled by short-term price increases.
Short-term and long-term investors have different visions and mindsets. Short-term investors are easily influenced by market conditions and have unstable emotions; long-term investors just need to enter during relative bottoms in bull markets, strategically laying out potential coins and patiently waiting for the bull market to peak and cash out.
Retail investors in the market are influenced by major players, forming a mindset of 'chives'. When there are greedy thoughts about making quick profits, one must consider their own capabilities. The financial market follows the 80/20 rule; investors looking to change their fate need to think about how to become part of that 20%.
In a bull market, the number of long positions taken is greater than the number of short positions, while in a bear market, the opposite is true, and generally, one will not incur losses. It's normal to get stuck in trades, and being stuck doesn't mean being harvested. In the crypto circle, people are often unwilling to retreat, but it is necessary to withdraw at the right time and accept the cycle of gains and losses.
Whether for short-term or long-term investment, defense (building positions in batches) is more important than offense.
There are always only two types of people who make money in the crypto circle:
1. Experts who wait for the right moment to act.
They are not the type to rush into the market as soon as they see some minor market movements. On the contrary, they can remain calm and patiently wait when they are in cash. They will prepare in advance, adding the promising coins they have to their watchlist and keeping a close eye on the market. When the price of Bitcoin drops significantly, they seize the opportunity to buy in fully, thereby earning substantial profits. This kind of patience and vision is not something just anyone can possess!
2. Smart people who firmly believe in 'value investment'.
In their eyes, a bear market is a good time to buy. They will carefully select those promising quality coins during this period and hold them long-term, unwavering. They will also invest regularly, continuously reinvesting, using the power of compound interest to let their funds grow larger like a snowball. This investment strategy, although seemingly simple, requires immense willpower and wisdom.
To be honest, as long as you can do either of the two points above, you can easily outperform 90% of the chives in the crypto circle who only know how to chase highs and sell lows. Moreover, doing so can save you worry and effort, so if you want to make money in the crypto circle, you must learn to patiently wait and invest in value; that's the way to go!
