🤔 Hi, today I will tell you about the way of investment: protect capital first, and win in stability
In cryptocurrency investment, the most important principle is to preserve the principal, because the principal is the basis for us to earn more profits. Even in the crypto world that pursues high returns, rational stop loss is required to ensure financial stability.
The philosophy of famous investor Buffett is a good reference: he emphasizes long-term benefits, and preserving capital is the cornerstone of this process.
Buffett does not view each investment as an independent event, but focuses on the overall investment process and internalizes capital preservation as the basis for every decision he makes.
He may not always think first about how to preserve capital when making investment decisions, but this principle always runs through his investment approach.
In the cryptocurrency world, the principle of capital preservation does not mean no risk at all. Profits and losses are interrelated, and never taking risks means never having the opportunity to make money.
Wanting to make money does not mean you will definitely make money. You must do the right thing at the right time, and the "right thing" is to protect your capital first. On the basis of protecting your capital, you can then consider how to achieve profit.
The definition of investment is to protect the principal first, and then make a profit. Otherwise, once the principal is lost, even if you encounter a good investment opportunity tomorrow, you will be powerless. The advice of experts in the cryptocurrency circle is without exception: try to protect your principal and win in a stable way, so that you can remain invincible in the ever-changing market.
