1. The safety of the principal is the top priority
No matter how enticing the market is, losing all your principal means the game is over. It is essential to manage risk properly and avoid blindly leveraging or heavily betting. It is recommended to only invest money that you can afford to lose.
2. Do thorough learning and research
The cryptocurrency space changes rapidly, with numerous projects and varying quality of information. Learn to discern the authenticity of projects, focusing on fundamentals such as team background, technical strength, community activity, and partners. Do not blindly follow trends or trust 'insider information'.
3. Control emotions and avoid chasing highs or panic selling
Market fluctuations are often accompanied by emotional swings. Avoid being greedy and chasing highs or panicking and selling. Establish clear buying and selling rules, maintain calm and patience, and avoid becoming a slave to emotions.
4. Diversify investments to reduce risk
Do not put all your funds into a single cryptocurrency or project. Reasonable diversification can reduce risk to some extent and improve the overall stability of returns.
5. Hold long-term and wait for value to be released
The cryptocurrency market has significant short-term fluctuations, and frequent trading can easily lead to losses from high-frequency traders. For quality assets with potential, it is advisable to hold long-term and wait for the gradual release of value.
6. Establish a scientific trading system
Trading is not just based on intuition; establishing a trading strategy and stop-loss/stop-profit mechanisms that suit you can help reduce losses from blind operations. Continuously summarizing and optimizing your trading system is a necessary path to advancement.
7. Beware of scams and protect asset safety
Scams in the cryptocurrency space are rampant, from phishing sites to Ponzi schemes. Always use official channels for buying and trading, enable multi-factor authentication, be cautious of private key leaks, and protect your digital assets well.