Brothers! Recently, the funding signals in the cryptocurrency market have exploded, right? Overseas institutional funds are flooding back, and the community is filled with newcomers asking, 'Should we rush in immediately?' 'If we wait, we'll miss a million opportunities.'—Let me pour some cold water: those rushing in are likely to be sending their heads! As an old hand who has been in the crypto space for 5 years, I've seen too many tragedies of retail investors chasing highs and selling lows. Today, I will thoroughly explain the underlying logic and practical strategies of this wave of signals. Newcomers can directly copy the homework after reading, and veterans can also enhance their understanding!
Let me share a bit of my dark history with you. At the end of last year, during that wave of market changes, I impulsively followed the community big shots and went 'ALL IN at the bottom.' As soon as I entered, I encountered a correction and got stuck halfway up the mountain, cutting my losses, losing nearly 20,000 in crypto assets. Since then, I've realized: making money in the crypto space isn't about luck; it's about discipline! This wave of fund inflow looks lively, but while it hides opportunities, it also buries pitfalls. Understand these two points, and you will have beaten 80% of the people.
1. Don’t misinterpret capital signals; these two cores are the only ones that matter.
First, it must be clear: the entry of large overseas funds is definitely a good thing, indicating that the long-term value of crypto assets is recognized, but it does not mean you can just lie back and earn in the short term. I have seen too many beginners treat 'capital inflow' as a charge signal, only to chase at high points and get stuck, crying and asking me if they should cut losses. Here are my two judgment standards; remember them:
1. Look at 'continuity' not 'single quantity': An occasional large capital entry is useless; it may just be institutions testing the waters. Focus on whether there is sustained capital inflow for 3-5 consecutive days, especially directed towards core assets; this is the real trend signal, not short-term speculation.
2. Look at 'support levels' not 'news': A single piece of good news is just fluff; no matter how large the capital, if a core asset cannot hold a key support level, it’s all in vain. For example, for a certain mainstream coin, you need to see if it can stabilize at previous lows after a correction; if it can hold, then consider allocation; if it can’t, don’t get involved even if it’s lively.
2. Three key rules for beginners to watch; I stabilized my profits this way.
After discussing signals, let me give you some solid strategies—three that I am still using, which beginners can follow to avoid 80% of the pitfalls; I’ve tested them effectively!
1. Gradually allocate; blacklist 'all in': My strategy is to select core assets, buy when they retrace 5%-8%, then buy again at another 5% retracement, and do not increase positions when they rise. The benefit of this approach is that even if there are further retracements, your average cost will keep decreasing, and your mindset will remain stable. Last year, I used this method to invest in a mainstream coin, and my cost was 15% lower than those who chased the price at the same time. When the market improved, I made a profit and exited.
2. Focus only on core assets; don't touch niche coins even if they are rising fast: Beginners shouldn't be tempted by the rapid gains of niche coins; those without technology or consensus rise quickly but fall even faster. Institutional funds will not touch them; they are all traps to harvest retail investors. I only focus on three or fewer core mainstream coins, as they have strong risk resistance. Even during corrections, they can hold up, and in the long term, the profit certainty is the highest.
3. Stay away from 'noise' from calls; don’t believe the 'get rich quick' myths in communities: Nowadays, many communities have people shouting 'rush in immediately, or you’ll miss the opportunity' and 'it will definitely surge tonight.' Let me tell you, these people are either traps to harvest retail investors or just making wild guesses. Last year, fans who followed these people in their operations lost about 80%; on the other hand, those who listened to my advice and persisted in gradual allocation or dollar-cost averaging have made quite a bit. Remember: in the crypto world, what can make you money is always discipline, not other people's words.
Lastly, let me tell you honestly: the crypto world is never short of opportunities, but it lacks people who can stay calm. Beginners don’t need to fear missing out on the market, nor should they think about getting rich overnight—invest with spare funds and use disciplined allocation; it is 100 times more reliable than gambling on luck. This wave of capital inflow is a good opportunity, but maintaining a steady pace is much more important than charging ahead blindly.
I break down the capital movements in the crypto market every day, analyze the support levels of core assets and timing for allocation, and I’ve also compiled a (beginner's guide to avoiding pitfalls in crypto investments), which contains all the pitfalls I’ve encountered and practical techniques I’ve summarized. Follow me if you currently feel helpless or confused in trading, want to learn more about the crypto world, and access firsthand cutting-edge information. Follow me @标哥说币 #加密市场观察 $BTC
