A must-read for cryptocurrency beginners

清醒sober · 2023-07-11T14:32:57.000Z

No investment market can escape the 28/20 rule, and the same is true in the currency circle. After all, there are only a few people who make money by speculating on currencies, and most investors are the ones being harvested. There are many factors that lead to loss of money in currency speculation, such as: chasing ups and downs, not having a complete investment plan, and lack of knowledge. To sum up, there are nothing more than the following six points; 1. Short-term thinking is serious. Many people are serious about short-term thinking. , in fact, we should take a longer-term view, allocate positions reasonably, focus on the long term, supplemented by the short and medium term, and follow the short-term trend changes that can be seen accurately. 2. Chasing the rise and killing the fall Chasing the rise and killing the fall is a mistake made by almost every investor in the currency circle. When you see a certain coin rising sharply and the whole world is discussing this coin, you follow the trend and buy it. After buying, you will lose 10%. 20% of the time, you are reluctant to cut the meat and wait for the day when the trap is released. When it continues to fall and loses 50% or even 60% or 70%, it feels that the currency is no longer good, so it cuts the flesh to the floor; and then repeats this step again and again. 3. Insufficient knowledge. Many people don’t think at all before investing. Today, a big V said that this coin is good, so they buy it immediately. Tomorrow, XX gossip says that the coin will rise, and they also buy it. As for what is good about this coin, I have no idea why that currency will rise; others are using their own judgment to determine why.

Any investment market cannot escape the 80/20 rule, and the same is true for the cryptocurrency circle. After all, only a few people make money by speculating in cryptocurrency, and most investors are harvested. There are many factors that cause people to lose money by speculating in cryptocurrency, such as: chasing ups and downs, lack of a perfect investment plan, and insufficient cognition. To sum up, it is nothing more than the following six points; 1. Serious short-term thinking Many people have serious short-term thinking. In fact, we should look at the long-term, allocate positions reasonably, focus on the long-term, supplemented by the medium and short-term, and follow the short-term trend changes that we can see. 2. Chasing ups and downs Chasing ups and downs is a mistake that almost every cryptocurrency investor will make. When they see a certain coin soaring and the whole world is discussing this coin, they follow the trend and buy it. After buying it, they lose 10% or 20% and are reluctant to cut their losses. They hold on and wait for the day when they can get out of the trap. When it continues to fall and loses 50% or even 60% or 70%, they think that this coin is not good, and they cut their losses directly to the floor; then repeat this step again and again. 3. Lack of cognition Many people do not think before investing. If a big V says that a coin is good today, they will buy it immediately. If a rumor says that a coin will rise tomorrow, they will also buy it. As for what is good about this coin or why that coin will rise, they have no idea.
4. Too impetuous in the heart Impetuousness seems to have become the norm in the currency circle. Many people enter this market with the mentality of getting rich overnight, but they are not prepared to return to zero in one day, let alone the ability to get rich overnight. After buying a coin, they hope that it will rise after buying it, double in three days, and 10 times in half a month. If the coin they bought does not rise in half a month or even loses money, they will start to find all kinds of excuses for themselves, scolding the project party for not managing the market value, scolding the dog dealer for smashing the market, and blaming the big V for inaccurate predictions. 5. Not learning Some media have done a statistics on investors' understanding of digital currency before. Among the 778 digital asset investors selected at any time, less than 10% can quickly and accurately describe "what is Bitcoin?" and only 17 people can accurately explain "what is blockchain technology?" Although the statistics of this data are small, they are enough to illustrate the current situation of the overall investors in the cryptocurrency circle. How can you have faith if you don’t even know what you are investing in? Without faith, how can you hold on to the lowest-priced chips or the best currencies? Learning is an eternal wealth, and only by continuous learning can you avoid being harvested. 6. Lack of sound investment concepts
Most people do not have a complete investment plan before investing, and they just follow their feelings. This kind of investment method that relies entirely on intuition will definitely lead to a high probability of losing money once you encounter unexpected situations. Only by making a corresponding investment plan before investing, such as: how many currencies to buy? When to buy? How to allocate positions? Should I stop loss or cover the position after the loss after buying? Should I reduce the position in batches or continue to hold after making a profit? Only by summarizing a set of investment strategies that suits us can we deal with various situations, whether it is rising or falling, we can treat it calmly, so that at least our mentality can be invincible and avoid the influence of mentality on making wrong choices.