In fact, Bitcoin and altcoins are still profitable, but most people can't make a living from it. Don't look at other great people making 10x or 20x returns. Many people are eager to try, but after looking at a bunch of indicators and parameters, they still don't know how to start. Some people go astray and play with leverage and contracts, and end up ruining their lives.
In fact, this is the same principle as doing stocks and futures. Even if you understand some of the golden section, wave theory, volume-price relationship, and entanglement theory (let me say here: I often use a combination of wave and entanglement theory)
When you are doing simulation trading, you will find that what you have learned and understood can be used, but when you actually use real money to trade, you will find that all the theories are invalid, leading to investment failure.
In fact, investment failure is not because you are really stupid, but because you don’t have a good method system to learn.
Because this is all my "blood and tears history", I know very well that the cryptocurrency circle is not friendly to novices, and I have also come from a newbie. It is not easy to grasp the trend and make several times the profit, and use money to make money.
Digital currency became popular in 2017, but it has always been a niche field. Some people say that they missed Bitcoin in 2013 and 2015, so Bitcoin is no longer profitable.
In fact, what I want to say is: digital currency has always made money, but there are not many opportunities for huge surges like from 2013 to 2020. But this does not mean that digital currency has declined. On the contrary, it is still in a bonus period.
The risk of cryptocurrency investment is relatively high compared to funds and stocks. It may fluctuate by more than 30 points in a day, but it is precisely because of this that "smart" investors can earn high returns. (It is recommended that novices learn the knowledge first and then try it out with a small cost)
The contract is a casino, and the cryptocurrency world is a place with insufficient supervision, so many exchanges will cheat. Sometimes your network is stuck and you can’t log in...it’s because the exchange wants to blow up your position, and in the end you will be left with nothing.
So, we really can't afford it, so the suggestion is: just play with spot goods.
Another point is to invest your spare money.
You should know that if you are a newbie and have no one to guide you, you are likely to be trapped, and once you sell, you will face losses. If this money is your emergency money or money to buy a house, it is really a loss, so you must invest your spare money and keep defensive funds for emergencies.
Also, never take out a loan or borrow money to invest. Again, don't do this unless you are 100% sure that you can make a profit.
Someone might say, I am investing my spare money, I don’t have much principal, and my returns are not much, so why should I spend so much energy on this?
In fact, when our capital is not above 500,000 yuan, I don’t think we can use it as a livelihood, so why should we get involved in investment and financial management?
Because you need to plan ahead, you must understand the skill of making money from money. Remember, this is a skill that can earn you a high rate of return with your strength.
So if you wait until you are 30 years old, when you have mastered this skill and your capital starts to increase, you can manage other investments, just because you have been exposed to investment early.
It’s that simple. Because you have been exposed to investment early, you have a sense of the market and prices. You have a deeper understanding of the market sentiment and the lives of coin investors/stock investors, and you will become different.
You have a scale in your heart, you know what investment is suitable for you, and you know when you can enter the market.
There are many small exchanges now that ask you to trade on their platforms. Everyone understands their purpose. So we are determined not to play with small exchanges.
Reduce your risk of going back to zero. The principal of the investment market is very important, and you must understand position management, but many people start the journey of recovering their capital as soon as they enter the cryptocurrency circle, and the further they get from recovering their capital.
Then some friends will ask which coin is the most stable investment?
My personal suggestion is not to invest in some altcoins. Investing directly in Bitcoin is the most stable method. Even if you make a fixed investment or build a position in batches, it is the most stable compared to other currencies.
Because Bitcoin has the strongest consensus, its price is difficult to be completely manipulated (note: it can be manipulated but not completely).
There are more than 2,000 addresses with more than 1,000 bitcoins. The current price of 1,000 bitcoins is 26 million US dollars. Each of them can easily become a banker in the Chinese stock market, but is it possible to become a banker in Bitcoin? Can you smash the market with 1,000 bitcoins?
It is impossible to smash it. Could it be that the Bitcoin bosses in more than 200 countries and regions around the world can collude with each other and work together to become the market maker?
The market value of junk coins is very low, perhaps only a few hundred thousand dollars, so it is easy for market makers to drive up prices and reap the benefits of retail investors.
Therefore, buying Bitcoin is the safest choice. Unless the currency circle returns to zero, Bitcoin will always exist.
Secondly, there is the mainstream currency. How did the name mainstream currency come about? What is a mainstream currency?
In the private sector, mainstream currencies are ranked according to market value, which means that you can invest in the top 10 currencies (except USDT).
If your funds are less than 100,000 yuan, I suggest that you buy no more than two currencies (Bitcoin + mainstream currencies), and Bitcoin must be one of them.
We all know that value determines its price. Bitcoin is valuable only when someone uses it. The more people use Bitcoin, the higher its value. If all mankind uses Bitcoin, the total market value of Bitcoin may be comparable to that of gold.
The supply of Bitcoin is completely fixed. The supply is elastic, and the higher the price of any physical commodity, the greater the supply.
This is very easy to understand. As commodity prices rise, profit margins expand, which will naturally encourage more people to invest in production, and the increased supply will curb the surge in commodity prices.
Including gold, when the price rises, it will lead to an increase in supply. In economic terms, this is called the price elasticity of supply, which refers to the change in the supply of a commodity caused by a price change.
However, the price elasticity of Bitcoin supply is completely zero, that is, no matter how the price rises, the total amount of 21 million remains unchanged. This is one of the abnormal parts, and it is much more abnormal than gold!
Secondly, the demand for Bitcoin is even more abnormal. For any commodity, the higher the price, the smaller the demand. This is also easy to understand. The increase in commodity prices will force people to look for alternative commodities.
Let me give you a very simple example: if the price of pork rises sharply and is almost the same as that of beef, you will change your habits and eat fish every other day instead of eating more meat, so your overall demand for pork will decrease.
This is also described by an economic term, called: price elasticity of demand.
However, the demand for Bitcoin is actually negative, that is, the higher the price of Bitcoin, the greater the demand, because the larger the plate, the more suitable it is for storing value!
If you are a firm believer in Bitcoin and other cryptocurrencies, then you don’t have to care about the price fluctuations, just hold on to the coins in your hands. (This is actually very difficult to do.)
If you are a rational investor, you can start to withdraw some funds appropriately and keep a certain amount of funds for continued observation.
If you are a speculator, please use reasonable funds to follow the market and avoid using leverage.
When you are always in the market, you should always put risk first. How can you avoid being left out every time? The world of blockchain has just begun. A wise saying should always be kept in our hearts: I am afraid when others are greedy, and I am greedy when others are afraid.