There are two key points to pay attention to now. The first is that Bitcoin is now consolidating at a high level, but altcoins are falling secretly, which is a risk. The second is that good news before and after the production cut may push up prices in the short term, but it is also possible that the market will adjust when the production cut is approaching because the good news has been digested.
The so-called production cut means that at a certain point in time, the output of Bitcoin will decrease, which usually drives the price up. This rise can occur both before the production cut because of expectations and after the production cut actually occurs. But from this round of bull market, due to the expectations of ETFs and interest rate cuts, the price of Bitcoin has been pushed to a record high. Although Bitcoin is now sideways, altcoins are falling, and the sharp drop last night not only caused many people to blow up their positions, but also put great psychological pressure on those who operate with full positions.
In the middle of the bull market, although everyone knows that there may be more crazy gains in the future, it is also difficult to accept if the profit retracement is as high as last night. So Dong Ge has always emphasized that our investment should be kept within a reasonable range at all times. If it exceeds your ability to bear, you may panic and sell in a plunge like last night. We should maintain a reasonable position and reserve some funds to cope with this sharp drop.
The reserved funds can be used for Bian mining, Ouyi financial management, or participate in the pledge activities of some large projects. Although the profits of these methods are not as high as buying coins directly, they are safer and can prevent us from always operating with full positions due to greed. For large funds, we always have to pursue the best configuration. Whether it is Bitcoin, Ethereum or BN mining, we should not ignore the safety of the principal because of the pursuit of short-term high returns. It is usually safe to participate in the primary market and pledge on large exchanges, but if you pledge on other platforms, you need to carefully consider the background of the platform, investors and other factors.
