Only by taking from the Tao can one have peace of mind
Recently, I really feel that the cryptocurrency world is like a year in the real world. There are many opportunities and information. I am buried in various information every day to see what this big V says and what that big V recommends. From time to time, I check the price list to see which coin has increased by how much!
Today, I saw more than a dozen people in our group mention CFX, and they always fantasize about how great it would be if they could buy it. Is this the case for you? [Can you hold on to it if you buy it?]
For some people who have the ability and methods, the clarity of blockchain lies in the fact that good projects can be seen without much effort. By seeing the bottom layer and the source code, combined with the current popularity, direction, and sector, you can make your own plan.
Most retail investors do not have these abilities. All they can do is learn from others to download Twitter, Telegram, and Weibo to see what the bulls and horses say, and then buy if they think it’s okay.
People who are losing money always ask those who are making money if they have any secrets. This is a very normal mentality. People always hope that there is a so-called secret that can make them easily gain. However, the more basic rule in life is: there is no secret in life. Only if you work hard and use the right methods can you receive some joy from life. Success is so difficult, no matter what industry you are in.
So the cryptocurrency world really lives up to the saying that the strong will always be strong, and the weak will become weaker [the richer you are, the easier it is to make money]
So if you want to make money, please put away your restless heart! Otherwise, you will definitely make money by luck and lose money by strength.
I like money, but it must be obtained in the right way, only then can I feel at peace. It will be much easier to find your own way!
About finding valuable targets!
Let me use a person as an example. I am a bit stupid and I am used to using some stupid methods to find value targets. Whether it is long-term or short-term, I follow the following points:
When judging the quality and investment value of a currency, it involves:
1. Ecosystem [Development space in the market]
2. Fundamental trends and chip situation [determine the timing of entry]
3. Project team, investment lineup, market evaluation [own strength]
4. The role of blockchain, can it become a rigid demand [determine whether it is worth investing]
5. Investor Psychology Analysis and Institutional Nature [Knowing the cruelty of the market and being able to face it calmly]
one
To determine the ecosystem, I usually open a non-small account and directly view the currency profile, then check its website, Twitter, and white paper to make simple notes, and at the same time compare it with the leading currencies in the same ecosystem.
two
The fundamental trend can be found through the previous market's chip platform and the fundamental trend to find a relatively low entry point [a good entry point will determine your profit margin, carrying space, and profit and loss ratio will be more cost-effective] The target selection is also based on this method [after making a reasonable target position to reduce holdings and clear positions, you don't have to suffer from the market, which is the best way to prevent more losses than profits]
three
Through the official website of the project party, some articles by big Vs who specialize in this project, and information resources in the circle, we can understand the project party team and the lineup of investors to a certain extent. In this way, we can roughly understand the strength of the project party itself. Only strength can have a more stable development space.
Four
The positioning of the project itself will divide the project into serving the blockchain/being served by the blockchain
This is critical. Projects that serve the blockchain have rigid market demands and are more likely to create their own hematopoietic function. They will not rely on market-assisted development [similar to cross-chain, oracle, and basic protocol].
Projects served by blockchain technology often rely on market heat and hype to develop. [Such as Lianyou Metaverse, these are all served by blockchain technology. Because their own hematopoietic function is very poor and they cannot make sustainable profits, they often find it difficult to have long-term development.]
five
Market investor mentality and institutional nature
The project itself is based on development and is also the main tool for profit. The rise in the market is a game between investors and institutions in many processes. Avoid the same mentality as most investors. From the perspective of institutions, you will see many danger signals.
These are the most basic points to understand the project itself. It requires accumulated experience. Don't be impetuous. It doesn't matter if you are slow. Only by making progress every day can you slowly become a player who understands blockchain.
A reasonable blockchain player operation
1) 10% rule
You should aim to earn 10% from your portfolio every time so you never have to worry about running out of money.
For example: If you hope to have 600,000 yuan for living expenses each time you invest, then you should first accumulate an investment principal of 6 million yuan.
Some people say it should be 30%, others say it is 20%, but the current mainstream calculation is 10%.
2) Rule of 10
If you invest 1 million yuan now, how long will it take to double it? "10 times principal doubled".
3) 5-year rule
If you want to be conservative, don't use money you expect to need in the next 5 years.
If you want to be more aggressive, don't invest money that you will need in the next 2 years.
4) Maintain the average return rate of the stock market
On average, the currency market has a solid annual return rate of about 150%-220% during its life cycle.
If you prefer an aggressive investment profile, aim for 300%; if you want to be more conservative, book at 80%; and don’t forget to account for the impact of inflation.
5) 5% rule
Please do not let any one currency account for more than 20% of your investment portfolio. It is risky to tie your net worth too much to a single currency.
Please limit hedging risk to less than 15% of your portfolio.
6) 50/30/20 rule
The long-term average return rate of long-term, band ambush and current hot spots can be targeted according to the following position allocation.
– Long-term: 50% – Band: 30% – Heat: 20%
Although the above rate of return is easy to achieve in the cryptocurrency world, we must also correctly examine the market risks and maintain a respectful heart to avoid making mistakes. #防骗小技巧
Correctly examine market risks and make profits with minimal risk