This wave of market is not making money, it's not that you can't, but the market's "play" has completely changed.
Many people feel that the market is rising, and hotspots are constantly appearing, but they lose money as soon as they take action, ultimately turning into paying transaction fees to the exchange.
Understand these five points to adapt to the new market:
1. Forget about get-rich-quick stories
Don't hold onto the stories from the last round where you could double your money by closing your eyes and betting everything. The current market has trends, but the process involves high-frequency fluctuations and fierce washouts. If you still think you can soar straight to the sky, you're likely to get stuck halfway up the mountain and repeatedly harvested.
2. Learn not to lose first, then learn to earn
The most common mistake new investors make is mistaking luck for skill. The first lesson in investing is to protect your principal: avoid going all-in, stay away from high leverage and high margin at the same time, and don't make decisions when emotions are running high. Controlling drawdown is more important than pursuing high profits; survive first.
3. Only buy what you understand
The biggest risk in the cryptocurrency world is "not knowing what you are buying." If you can't clearly explain why a coin is rising and what the logic is, then your investment is like making a donation. When in doubt, stick to mainstream coins for safety.
4. Don't chase trending hotspots
Sectors rotate very quickly, and when a certain hotspot (like AI or the SOL ecosystem) is being talked about in all communities, it is often the most dangerous time, as major players may be preparing to retreat. A prudent approach is to hold mainstream coins as a base and only use spare cash in small positions to participate in altcoins you have truly researched.
5. Information disparity determines life and death
In this round of market, first-hand information is overseas. Domestic news is often severely delayed. Important policies, institutional trends, and ETF fund flows all happen overseas first. Relying on second-hand translated information is always a step behind, making it easy to become a bag holder.
In this round, it's not about courage, but about cognition, speed of information, and discipline. Only those who survive to the end can reap the rewards.
