Xiao Bai enters the cryptocurrency world to make a profit
If you don't have much capital and want to make money in the crypto world, there is a simple method that can let you earn continuously.
As long as you master this method, you can earn an extra 3%-10% on subsequent trades.
Below, I will share my experiences from these years of trial and error.
1. Don't be greedy, start with one or two coins
There are as many cryptocurrencies as stars in the sky, with dozens or even hundreds of types available. However, as small retail investors, our energy is limited and we don't have much money. Never think about trading everything; it's best to focus on 1-2 coins, maximum 3.
2. When prices skyrocket or plummet, don't act rashly
When the market is soaring, do you feel like this coin is going to double, and all you can think about is quickly charging money to buy buy buy? Conversely, when the market is crashing, you might feel like it's all over and rush to sell! In such times, being flustered can lead to foolish actions. I suggest that when the fluctuations are too wild, don't act; calm down and take another look.
3. Don't put all your money in, maintain a stable mindset
When trading cryptocurrencies, don’t go all in. It's best to keep 30%-50% of your money on hand. This way, if the price drops, you can average down, and if it rises, you can add a bit more. If you invest too much, you’ll be happy when it rises, but panic when it falls. If your mindset collapses, all your decisions will go awry. Leave yourself some room.
4. Take your profits and run, don’t be greedy, and accept losses
Set a target for yourself when trading, for example, sell when you've made a 20% profit, regardless of whether it continues to rise. Many people want to make a little more and end up getting trapped. Greed is human nature; you have to control yourself. The same goes for losses: set a bottom line, for example, cut losses at 10%. Don’t stubbornly hold on; many trading platforms allow you to set automatic buy/sell orders. Set your prices and leave it to the computer; don’t make decisions based on your shaky hands at that moment.
5. Learn some skills, don’t rely entirely on others
Many people in the crypto world do not come from a financial background; they might be programmers or homebodies who want to make some money but know nothing. Instead of listening to others’ nonsense, it’s better to spend a few days learning technical analysis, such as reading candlestick charts and moving averages. Having your own knowledge is more valuable than anything.
6. Take your time, don’t go all in or liquidate everything
Whether buying or selling, don’t do it all at once. For example, if you want to buy 10 bitcoins, split it into 5 purchases, finishing in an hour, or spread it over a few days. This way, the risk is smaller, and you won't be ruined by a moment of impulse. Steady progress is the way to long-term success.
Finally: The biggest fear in trading is being driven by emotions. Making decisions with your own mind is the key to making money.
