After 10 years of trading coins, I have gone from being deeply in debt to being very wealthy, and I have learned 9 rules of the crypto world. The content is not extensive but highly valuable. Today I share them with you; if you understand a few of these rules, things will get smoother.
1. Capital management: Act according to your means, diversify risks
Focus on holding one coin within 100,000: When funds are limited, concentrate on holding a single promising coin, and conduct in-depth research on its fundamentals and technical aspects.
With 200,000 to 300,000, play with two coins: When funds are slightly more, you can diversify into two coins to reduce the risk of a single coin.
Within 500,000, three to four coins are enough: When funds increase further, hold at most three to four coins to avoid excessive diversification.
No matter how much capital you have, do not hold more than five coins: Regardless of how much capital you possess, the number of coins held should not be excessive to avoid management difficulties. Focus in a bull market, be light in a bear market: In a bull market, concentrate funds on the most promising coins; in poor market conditions, operate with a light position to reduce losses and exit in a timely manner if you incur losses.
2. Trend is king: Follow the market, do not go against the trend.
Follow the news, learn technology: Understand market trends and technical indicators to improve investment success rates.
Downward rebounds are often traps; upward corrections may be pitfalls: Do not blindly catch the bottom or chase highs; operate according to the trend.
Do not guess the intentions of major players: The operations of major market players are difficult to predict; focus on your own investment strategy.
3. Only take action when the market is bustling; respond flexibly.
Take action when the market is active: When market enthusiasm is high, investor sentiment is positive, making it easier to seize opportunities.
Operate flexibly, do not be rigid: Adjust strategies in a timely manner according to market changes, and do not stick to old models.
4. Stop-loss and take-profit: Protect capital and lock in profits.
Set fixed stop-loss points: Cut losses in a timely manner to avoid greater losses.
Gradually raise selling prices: When profitable, gradually increase selling prices to ensure profits are not lost.
5. Buy quickly and sell decisively: Make prompt decisions and avoid hesitation.
Buy quickly: Buy decisively when opportunities arise to avoid missing out.
Sell decisively: Sell decisively when reaching your target or when the market turns, avoiding losses caused by greed.
6. Think carefully before increasing your position.
Ask yourself: Before increasing your position, consider whether you are willing to invest new funds in the current situation. If the answer is yes, then consider adding to your position.
7. Focus on long-term, with short-term as a supplement.
Avoid frequent short-term speculation: Short-term operations can easily lead to losing direction and affect your mentality.
Follow the trend: Large investments should follow the major market trends and hold potentially valuable coins for the long term.
8. Do not blindly catch the bottom; treat the market rationally.
A large drop does not mean you can catch the bottom: A significant market decline does not necessarily mean the bottom has been reached; blindly trying to catch the bottom may lead to further losses.
Few people make money in the market: Only a small number of people can truly make money in the market, so remain rational and do not follow the crowd blindly.
Final advice
A bull market is not only a test of market fluctuations but also a test of the investor's mentality. Maintain calmness and follow the above rules to thrive in a bull market.
Steadily move forward during bear market alternations to ultimately achieve wealth growth.
