The path in the cryptocurrency space is fraught with thorns. Many newcomers step in full of hope but end up failing in confusion; many veterans and experts may also capsize due to a moment of carelessness in perilous waters like contracts. Here, I outline ten key points for survival in the cryptocurrency space, hoping to assist you in navigating this path steadily.
1. Stay away from contract traps
Contract trading is like the Bermuda Triangle of the cryptocurrency space. Newcomers are often deceived by its high leverage and high returns, while veterans and experts may also fall into it due to overconfidence. Once market trends diverge from expectations, the risk of liquidation follows closely, and countless fortunes can vanish in an instant. Newcomers must stick to spot trading, select quality cryptocurrencies, and hold firmly, which is the prudent way.
2. Avoid risks from small cryptocurrencies
Small cryptocurrencies in the cryptocurrency space are like shooting stars in the dark night; they may seem brilliant, but they are actually fraught with crisis. Most of these cryptocurrencies lack solid value support and widespread market recognition; issuers often attract investors through speculation and manipulation, only to exit after harvesting profits. A price drop of 99% or even going to zero is not uncommon. Therefore, it is wise to only choose mainstream cryptocurrencies with large market capitalization, high recognition, and strong liquidity.
3. Choose exchanges carefully
Small exchanges are like small boats in a storm, which can capsize at any time due to a broken capital chain, technical failure, or malicious exit. Once faced with such situations, investors' funds will be ruthlessly frozen, leading to total loss. Therefore, priority should be given to mainstream exchanges at the industry's forefront, and funds can be diversified across several mainstream platforms to reduce risk.
4. Abandon fantasies of getting rich quickly
The myths of tenfold or hundredfold returns in the cryptocurrency space have gradually faded with market maturation and institutional entry. Nowadays, market competition is increasingly fierce, with major institutions and elites all making moves, making it difficult for ordinary investors to achieve exorbitant profits. Doubling one's capital is already quite an achievement; if a novice can avoid losses in the early stages, they have already surpassed over 90% of their peers.
5. Beware of wallet risks
While wallets are important tools for storing digital assets, they are not absolutely safe. Unknown small wallets may have technical vulnerabilities, fund misappropriation, or even exit risks. If holding a large sum of money, it is advisable to use well-known wallets and properly safeguard private keys and mnemonic phrases; even for small amounts, one should not be careless and should try to choose wallet products with good reputations and large user bases.
6. Focus on long-term investment
The cryptocurrency market changes rapidly, with shocking volatility. It is not uncommon for Bitcoin to drop 20% in a day or for altcoins to halve instantly. Ultra-short-term trading requires investors to have extremely high market sensitivity, precise technical analysis skills, and decisive execution capabilities, which most ordinary investors find difficult to achieve. Therefore, long-term investment is more suitable; after selecting promising cryptocurrencies, holding them patiently is the way to hope for the roses of time.
7. Strictly adhere to stop-loss and take-profit disciplines
In cryptocurrency investment, setting clear stop-loss and take-profit targets is crucial. Market trends are unpredictable; when the price drops to the preset stop-loss level, one should decisively sell to control losses; when the price rises to the take-profit target, one must overcome greed and firmly sell to lock in profits. The root cause of many investors' losses in bull markets is their failure to take profits in time, ultimately ending up empty-handed when the market reverses.
8. Reasonably control the scale of funds
The risks in the cryptocurrency space are unpredictable; it is certainly not a place for borrowing and investing. Do not use your entire fortune, and definitely do not borrow money to enter the market. It is recommended to only invest a small portion of idle funds in the cryptocurrency space, accumulating experience and exploring market rules under the premise of controllable risk. In this way, even if losses are incurred, it will not affect personal financial status and quality of life.
9. Keep learning to enhance your knowledge
Wealth and knowledge go hand in hand; one cannot earn wealth beyond their knowledge. The cryptocurrency space is a new field where technology iterates rapidly, market rules change frequently, and information is complex and hard to discern. Investors need to continuously learn about blockchain technology principles, market analysis methods, risk management strategies, and other knowledge to constantly broaden and deepen their cognitive boundaries, so they can seize opportunities and face challenges in the ever-changing cryptocurrency market.
10. Seek guidance from good mentors
The cryptocurrency space is full of traps; statistics show that over 90% of investors incur losses here. Finding an experienced and trustworthy guide is crucial. A good mentor can not only impart practical experience and investment skills but also help investors identify and avoid various traps. However, one must stay away from those so-called 'teachers' who induce contract trading and lead operations, as such individuals often have ulterior motives and will only lead investors deeper into the abyss.
By following the above cryptocurrency survival guide, while it may not ensure you will get rich overnight, it will help you move steadily in this field filled with opportunities and challenges, reduce risks, and improve the probability of long-term survival and profit. May all investors cherish their journey in the cryptocurrency space and reap their own wealth and growth.
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