Richard Teng, the CEO of Binance, revealed three fundamental principles he sees as essential for success in the field of cryptocurrency investment.
These tips came through a post he made on platform X, addressing an audience of traders and investors, highlighting the importance of mental and strategic discipline in a highly volatile market.
The first of these principles is 'setting the rules.'
Teng urged investors to establish clear guidelines before entering any deal, including setting risk limits, timing for profit-taking, and identifying points at which to reduce losses.
He emphasized that making these decisions in advance spares investors from falling into the trap of emotional decisions that have led many of them to significant losses.
Secondly, he stressed the need for continuous improvement of strategies.
Given the rapidly changing nature of the market, keeping up with developments and regulatory or technical adjustments is crucial.
Teng noted that ignoring important notifications, such as decisions to delist trading pairs, could lead to irreversible asset loss.
The third principle is to keep emotions out of investment decisions.
Teng warned against falling prey to impulse or fear of missing out (FOMO), emphasizing that these emotions often lead to uncalculated investment decisions that end in losses.
Although there is no direct reason for the timing of these guidelines' publication, the overall context indicates increasing concern about the impact of regional disruptions and sharp market fluctuations, which recently led to a 1.24% decline in the total market capitalization of cryptocurrencies.
In such periods, the role of leadership and guidance becomes crucial in calming the markets and enhancing investor awareness.