Does trading cryptocurrencies really earn more than trading stocks?
Many people think this way. I believe that if your capital is below 100,000 and you want to stay stable in the cryptocurrency market without losing or even making a small profit, there's a simple method that can help you keep 'earning.' Don't worry about not being able to learn; if I can seize opportunities, so can you.
I'm not a master; I'm just an ordinary person. Compared to others, I might have just picked up a little trick. As long as you grasp this method, you can earn an additional 3% to 10% profit on subsequent trades. Little by little, it adds up, and it's quite appealing.
1. Don't be greedy; start with one or two coins.
There are so many cryptocurrencies in the market, like stars, with dozens or even hundreds of options. However, as small retail investors, our energy and money are limited, so don't think about trading everything. It's best to focus on 1 to 2 coins, stretching to 3 at most. If you have too many, you won't manage well, and when the market is volatile, your decisions to buy or sell will be based on gut feeling with no time to think, leading to mistakes in panic. It's much better to focus on understanding one or two thoroughly.
2. Don't act recklessly when the market is wildly up or down.
When the market is soaring, do you feel like "this coin is going to double; wealth is just around the corner?" You might have only one thought: "Quick, invest more, buy, buy, buy!" Conversely, when the market crashes, you might think, "It's over, it's going to drop to nothing; sell quickly!" In such times, your heart races, and you're flustered, making it easy to do foolish things. My advice is: when the fluctuations are too wild, just don't act. Calm down and reassess; don’t let emotions lead you.
3. Don't put all your money in; maintain a steady mindset.
When trading cryptocurrencies, avoid going all in (investing your entire capital). It's best to keep half or a third of your money available. This way, if the market drops, you can buy more, and if it rises, you can invest a bit more. If you put too much in, you'll be happy when it rises but panicked when it drops, and if your mindset collapses, all your decisions will become distorted. Leave yourself some room; don’t corner yourself.
4. Once you've made enough profit, run away; don't be greedy, and accept losses.
When trading, set a target for yourself, like selling after a 20% profit, regardless of whether it keeps rising. Many people try to earn just a bit more and end up trapped; greed is human nature, and you need to control yourself. The same goes for losses: set a bottom line, like cutting losses at 10%, and don't hold on stubbornly. Many trading platforms allow you to set automatic buys and sells; set the prices and let the computer handle it instead of relying on your shaky hands to make decisions in the moment.
5. Learn some skills; don't rely solely on what others say.
Many people in the cryptocurrency space aren't from financial backgrounds; they might be programmers or introverts looking to earn some money without understanding much. Instead of listening to others' empty talk, it's better to spend a few days learning technical analysis. For example, understand basics like candlesticks and moving averages; having your own foundation is better than anything else. Relying solely on others' calls will eventually lead to your downfall.
6. Take your time; don’t go all in or clear out your positions at once.
Whether buying or selling, don't go all in at once. For example, if you want to buy 10 bitcoins, do it in 5 increments, completing it in an hour, or spread it over a few days. This way, the risk is lower, and you won't crash due to impulsive decisions. Steady and measured is the way to go for the long term.
7. Trust yourself; don’t let others confuse you.
There are countless analyses online; today someone says it will rise, tomorrow someone says it will fall. If you listen too much, your mind will get scrambled. The market is inherently uncertain; no one can predict the future. Others' opinions differ from yours, so don’t panic; just trust your own judgment. The biggest fear in trading is being led by emotions; making decisions with your own mind is key to making money.
