Even when things are going smoothly, you must be cautious. The market is always a risky market. Before virtual currency is converted into cash, it is always just a string of numbers. Any behavior of chasing highs and selling lows is a dead end. There are two types of people who make money in cryptocurrency trading: those who hold it for a long time, have a calm mind, and are not distressed by the rise and fall of a day, and those who are adventurous, have a unique vision, dare to invest in new things, and discover new opportunities; the other type of people lose money: those who chase highs and sell lows, believe in rumors, and have an impetuous mentality, that is, leeks.
Cryptocurrency trading is not as simple as you think. You can't just come in and make a lot of money. A qualified cryptocurrency trader must not only understand economics, follow news hotspots, understand national policies, and care about international situations, but also study the fundamentals and technical aspects of encrypted digital currencies, and constantly fight against his own greed and fear. A big heart is the first prerequisite, which can withstand ups and downs, from nothing to something, from something to nothing, withstand temptation, and endure torture. It can be said that those who can survive in the cryptocurrency circle are basically indomitable, immune to all poisons, and tempered into steel.
Before trading, we need to think about whether we are investing for the long term or doing short-term gambling. Most people buy just to earn money for cigarettes. Once they are trapped, not only will they lose their money for cigarettes, but they will also be trapped deeper and deeper, unable to extricate themselves. They have no choice but to accept long-term investment. Therefore, there is a saying that goes like this: faith is trapped. After the trap is released, the faith is gone. In this way, they are perfectly trapped in all bear markets and miss all bull markets.
The cryptocurrency circle is divided into three layers: project parties, channel parties, and leeks.
This is a food chain in the cryptocurrency circle. The three parties involved are actually in a mutually beneficial relationship. In essence, they are all equal, the only difference is information asymmetry. From ancient times to the present, merchants have used information asymmetry to make profits, and the same is true in the cryptocurrency circle. In this food chain, if you can't figure out which level you are at, then most of the time you are at the level of being carried, or in other words: you are either being carried or on the way to being carried.
The channel party cuts the leeks and the project party. The leeks can unite to cut the project party or the channel. Of course, as of now, the project party has the highest probability of cutting the leeks and channels, and the cutting is also at a higher level.
Keep a steady mindset and manage your positions.
This involves personal financial situation. Don't borrow money to sell your house to gamble. This kind of play will definitely make you lose your mind. As long as the market drops for a few days in a row, your mind will explode. You can't sleep at night and you are always worried about it during work. When you are smoking, you take a look at the market, "Ahh! It's dropped by 10% again!" "I lost so much money in just two days! I wouldn't have traded in cryptocurrencies if I had known!" "Damn it! I'm risking my life!" I can't even go to work.
So don't have a gambler's mentality, take out money that does not affect your life, manage your positions, and set a stop loss. If you really can't do it yourself, learn more in a group, follow the teacher, and watch the text live broadcast of Guibi.com at any time without wasting time. Don't fantasize about buying at the bottom and selling at the top, build positions in batches, and ship in batches.
Summarize your investment strategy.
After each operation, record the reason for the transaction, what currency was bought and sold at what time and how much money, why the operation was made, what the market sentiment was at the time, what news was available, and what your own estimates were. Then constantly adjust your trading strategy based on the results.
Get information and analyze it.
We need to find out whether it is listed on any major exchange, which investment institutions have invested in this project, how many times the current price is the crowdfunding price, etc.
What matters in cryptocurrency trading is mentality
Cryptocurrency trading is a psychological game, a contest of intelligence among millions of people, and a fierce psychological battle. The fluctuations in the cryptocurrency market reflect the psychological changes of both parties to the transaction to a certain extent. To a certain extent, cryptocurrency trading is all about psychological quality. In the long run, most of the ultimate winners in the cryptocurrency market are those with higher psychological quality and a calmer mentality.
At the beginning, cryptocurrency speculation was all about curiosity and interest, then it was about technology, then it was about unexpectedness, unique vision, judgment, wisdom, and finally it was about mentality and realm.
As the proverb in the cryptocurrency circle says, "The most important thing in cryptocurrency trading is mentality, mentality, and mentality."
Success is in the mindset, and failure is also in the mindset. In a certain period of time, the emotions, madness and rationality of the participants will play a decisive role in the buying and selling of the currency market. Without good psychological quality and a peaceful mindset, it is difficult to become a big winner in the end.
Cryptocurrency trading is all about mentality. Mentality determines your destiny, attitude determines depth, and the cryptocurrency trading mentality determines success or failure.
In a sense, investment is anti-human. The more noisy and noisy the place is, the more calm and rational it is needed. For blockchain and digital currency investment, here are three suggestions:
First, only choose projects with clear application scenarios and sufficient future potential. As an investment, don’t be fooled by white papers. You must clearly analyze whether the project has found the right application scenario, whether the application scenario really has pain points that blockchain technology or other technologies can solve, and whether the future potential is large enough. Is the market space worth tens of billions, hundreds of billions, or trillions of dollars?
Second, only select projects with strong technical teams and excellent management teams. Does the project party have an excellent technical team, or whether it has the ability to build a strong technical R&D team, whether the management team has a deep enough industry background and resources, and whether it has established a good corporate organizational system.
Third, only choose projects with clear and solid profit models. Does the project have a clear business model, rather than just issuing digital currency for speculation without earning profits from customers? A good business model is one that can definitely earn more and more free cash flow in the future.
From experience, in a 3-5 year cycle, if the project you choose is good enough, it is possible to achieve a return of dozens of times. However, don't dream of getting rich overnight. Although the myth of super returns of 10,000 times exists, it is definitely not what a normal person pursues.
Only when you are calm can you calmly deal with the impetuousness of the market; only when you are calm can you calmly recognize the essence behind the disturbing appearances. Don't be proud of your profits; learn lessons from your losses. After you truly treat everything calmly, your investment and even worldviews can be sublimated. The power accumulated in calmness is a kind of power that keeps running towards success. In order to better adapt to trading and better improve your personality, you must gradually understand and master your own psychological characteristics, learn the ability to adjust your psychology, self-regulation methods, and adjust your emotions, thinking, will and other psychology at any time. Character determines destiny. A good attitude and a kind character will definitely make you gain something in the currency market.
All the above information does not constitute investment advice and is for reference only. There are risks in the cryptocurrency circle and investment should be cautious!
