Master low-cost chips, invest steadily, and do not be swayed by market noise. In crypto investment, one must first realize that low-cost chips are hard to come by and should never be easily influenced by market fluctuations. Stay firm in your beliefs, remain calm, and prevent yourself from being disturbed by strategies such as market manipulation or price dumps. Chasing highs and selling lows, and operating with the entire capital are often major investment taboos. If the overall market trend is positive, building positions gradually during a downturn is more effective at controlling risk, lowering costs, and maximizing profit margins. The key lies in reasonably allocating profits and maximizing the vitality of funds, rather than blindly increasing positions.
When the market surges rapidly, first lock in some profits in a timely manner and seek wins steadily; when the market drops sharply, do not rashly withdraw funds, but maintain the main position and stabilize your mindset. Do not engage in opportunistic behavior, do not seek excessive gains too quickly, and do not fear market fluctuations; always maintain a steady mindset to avoid operational mistakes. Early low-price layouts or private placements of low-cost coins stem from market experience and future potential predictions, while gaming in the secondary market relies more on technical and information analysis. Reasonably distinguish between previous and later stages, ensuring that each step has clear logic and direction.
Building positions and selling:
Building positions and selling: layer by layer, controlling risk and profit.
Investment in the crypto space is a complete process from building positions to selling, where layered and segmented operations are particularly crucial. Gradually widening price levels allows for effective control of risk and profit ratios, forming a more flexible operational space. Investors also need to familiarize themselves with the interconnected effects, observing trends across multiple coins. Each coin's performance in the market is interconnected; seemingly independent, they actually influence one another. Reasonably allocate positions between hot coins and value coins to balance investment risks and profit returns; being too conservative may result in missed opportunities, while being too aggressive may face high risks. Value coins tend to be more stable, while hot coins are more volatile with larger fluctuations; appropriate allocation is crucial.
Balance mindset: capital management and risk prevention: balance mindset.
In crypto investment, maintaining account liquidity—having coins on the market, cash in the account, and cash in hand—is an important guarantee against market uncertainty. Absolutely do not go all-in; reasonably allocate funds and master risk control methods. This not only stabilizes the investor's mindset but also effectively controls risks. Using spare money for investment rather than borrowed capital is the foundation of investment. Master basic operation skills and thinking processes, develop a habit of recording and summarizing, treating the highs and lows of each operation's data as valuable experience, and gradually cultivate the ability to filter information and make decisions.
Grasp the elements of successful investment:
1. Investment does not rely on luck.
If your profitable trades exceed your losing trades, and your account value is increasing, it indicates that your investment strategy has become stable. However, if out of ten trades, nine are profitable but one consumes all the gains, resulting in a negative account growth, then you need to reflect. Investment should not be made lightly; if the direction is wrong, decisively cut losses and replan the next steps.
2. Trust yourself, do not be disturbed.
Many times, our initial judgments may be correct, but under the influence of others, we hastily change direction, resulting in missed gains. Investors must have a firm belief; often, the truth is held by a few, and maintaining confidence in oneself is the key to success in the market.
3. Master trading skills.
The crypto market has unique rules; following the trend is the basic principle, while operating against the trend often comes at a great cost. Therefore, in trading, one should combine technical analysis and market trends, striving to avoid counter-trend operations. Focus on technical learning to enhance sensitivity to market changes.
4. Strengthen risk control. Investment in the crypto space is high-risk and high-reward; every trade requires proper risk assessment. Entering with a light position and adding to it in the direction of the trend is essential, while blindly going in heavy is to be avoided. Set stop-loss and take-profit levels for each trade to avoid greed or hesitation, thus maintaining investment flexibility and risk control.
5. Grasp the timing of entering the market. Many investors are easily attracted by market fluctuations and rush to enter, but if the entry point is not suitable, it can easily lead to losses. It is more important to wait appropriately and choose the right opportunity to enter. Patiently wait for a good market condition, and do not rush in due to a moment of impatience.
6. Decisively exit to avoid hesitation. Hesitation when exiting can lead to significant losses for investors. When profits reach the expected target, exiting in a timely manner is more rational than blindly pursuing higher returns. Avoid letting greed turn profits into losses. At the same time, promptly cut losses when in the red, abandoning temporary lucky thoughts to prevent further losses and leave more capital for subsequent operations.
7. Maintain a stable mindset and eliminate impatience. Investment is a long-term process, and gains and losses are normal phenomena. Regardless of current success or failure, maintaining a good mindset helps better face future fluctuations. The market is unpredictable; no one can always maintain accurate judgments. In the face of failure, summarize lessons, adjust your state, and continuously optimize strategies to ultimately achieve stable profits.
8. Pay attention to news and combine it with technical analysis. News has a significant impact on market conditions; often, a major piece of news can overturn existing technical formations. Therefore, when making trades, it is necessary to combine news and technical aspects for a more comprehensive judgment.
9. Maintain sufficient funds and use them wisely. If the source of investment funds is borrowed, the mindset will become impatient and operations will be limited. Crypto investment should be conducted with spare funds, which can stabilize the mindset and allow for more flexible position building and locking operations.
Core elements of successful investment: steady operation and team support.
For investors unable to filter quality coins, it is advisable to pay attention to professionals with mature strategies and solid experience. Whether in spot investment or futures contracts, a slight entry at the right time can suffice. Opportunities are fleeting, and seizing the rhythm is more important. Crypto investment requires an understanding of the situation, selecting the right timing to enter and exit. Successful investment relies not only on luck; choice is greater than effort, and the circle determines destiny. Paying attention to powerful teams and following experienced guides can undoubtedly help you navigate the crypto space more efficiently and seize greater opportunities.
Investment in crypto is full of opportunities and challenges; there is potential for stable profit but also considerable risk. Thus, staying calm, understanding the rules, and learning analytical tools is the essential path to success.
Summarizing the experiences of crypto experts over the years.
A true expert is not necessarily someone with exceptional skills; more importantly, it is a profound insight into market rules and strict adherence to them.
Rising does not imply a peak, and falling does not imply a bottom.
The market trend often exceeds most people's imaginations. Take Bitcoin as an example; many did not believe it could reach a high of $150,000 as its price gradually climbed. They were limited by their fixed perceptions, thinking the price had risen absurdly and could not go higher. However, they overlooked the market's crazy power—once a bull market comes, the room for price increase is immeasurable.
Similarly, during a downturn, people often misjudge. When Bitcoin was at $68,000, many investors thought that was the bottom and prepared to buy in. However, the market ruthlessly continued to decline, and when it dropped to $62,000, panic began to set in among these investors.
What’s even more unexpected is that the price experienced a spike, directly reaching $56,000. This situation caused heavy losses for those blindly guessing the bottom. It's like someone groping in the dark, thinking they found a safe landing spot, unaware that they were stepping into a deeper abyss. This teaches us not to rely on subjective assumptions to guess the market's top and bottom, as market changes are endless and will not operate according to our expectations.
Each trade should ideally not exceed 5%.
Capital management is crucial in crypto investment. Especially for investors with small amounts of capital, they often feel the need to go all-in to achieve high returns, but this approach often backfires. True experts build positions in batches according to a proportion of five percent.
For example, an investor with 1 million funds only invests 50,000 each time he builds a position. The benefits of this approach are evident. First, it greatly increases the opportunities for trial and error. Suppose that after his first position, the market trends contrary to his expectations, his loss is only 5% of the total funds, leaving enough capital for subsequent operations.
If you invest a large amount of money at once, a misjudgment may lead to severe losses or even total loss of capital. Moreover, this method of gradually building positions can continuously optimize costs. As market prices fluctuate, subsequent positions may be built at lower prices, thus reducing overall costs. It's like building blocks; piece by piece, you gradually construct a stable investment portfolio.
Those who fear heights are doomed to suffer.
In the crypto space, behind every coin, there are major players at work. The cost incurred by these major players to promote a coin's development is extremely high. From initial promotion costs to acquiring chips, and developing related technologies and applications, these add up to a colossal number. This is not simply a 20% - 50% cost ratio; it could be several times or even dozens of times what we imagine.
For emerging coins, in order to stand out in a competitive market, they need to conduct large-scale promotion globally, and the associated costs such as advertising expenses and salaries for marketing personnel are significant.
To control price movements, major players may need to buy large amounts in the market, further increasing costs. Therefore, when we see a coin's price continuously rising, we should not shy away just because the price is high. Behind that price is solid value support; major players need higher prices to realize profits, which provides opportunities for us investors to follow and profit.
The bull market is the only opportunity to turn around.
The legendary investor Warren Buffett, whose investment strategy is largely based on long-term value investing, relies on a relatively stable market environment in the U.S. stock market. However, even investment masters like Buffett must face losses if they encounter a bear market. He chooses to remain steadfast in the U.S. stock market and stay in Omaha because the market environment there suits his investment style. In the crypto space, the situation is more complex and extreme.
In a bear market, almost all coins are falling, market sentiment is extremely pessimistic, and investors find it difficult to profit. The bull market is completely different; in a bull market, a large influx of capital into the crypto space causes various coin prices to soar. Just like the tide, the power of a bull market can lift all boats. At this time, as long as investors choose relatively quality coins, there is a significant opportunity for substantial asset appreciation. Therefore, for crypto investors, seizing the opportunities of a bull market is key to turning around.
The lagging nature of technical indicators.
Technical indicators are tools that many investors rely on in crypto investment, but we must clearly recognize their limitations. Technical indicators are often calculated and generated based on historical data, leading to their lagging nature. For example, when coin prices are strongly rising, we will find some commonly used technical indicators, like MACD, also starting to show positive trends.
At this point, the coin price had already increased significantly. Many investors, seeing positive technical indicators, blindly chased the rise, often ending up trapped at high positions. Take the MACD indicator, for example; it often shows a golden cross on the same day, and investors joyfully believe an upward trend is coming, only for it to turn into a death cross the next day, with the market plummeting. Such situations are common, indicating that we should not rely solely on technical indicators as the main basis for buying and selling, but rather use them as a reference, analyzing multiple factors such as market fundamentals and capital flows to make more rational investment decisions.
Firmly believe that you will ultimately conquer the market.
In the challenging realm of crypto, confidence is key to success. Every successful figure in the crypto space is filled with confidence. They do not have a smooth journey in investments and have all experienced losses. However, they have never been defeated by these setbacks. They believe in their judgments, trust their understanding of the market, and consistently adhere to their investment strategies. Just like travelers moving through darkness, they have a guiding light in their confidence.
If an investor does not even believe in their ability to make money in the crypto space, then when facing market fluctuations and various complexities, they can easily waver and make wrong decisions. This confidence is not blind arrogance but is built on in-depth learning of market rules, continuous improvement of one's investment strategy, and summarizing past experiences.
Using just one strategy: a visual explanation of trading volume strategy - EMV indicator, let me share my recent experiences and insights. At the end of last year, I entered the crypto market with 200,000, initially just with a try-it-out mindset. I didn't blindly follow the trend but deeply studied the EMV indicator. When the coin price was at the market peak, I noticed a very obvious phenomenon: once there is a large trading volume, the EMV value reacts in advance. It begins to decline and gradually approaches the zero line.
This process is like the calm before a storm; the market may still be bustling with trading on the surface, but danger is quietly approaching. When the EMV value turns from positive to negative, it is a clear signal that the market is about to reverse and enter a downtrend. Based on this signal, I decisively sold my holdings. It is precisely due to the precise application of this indicator that my assets have grown like a snowball.
Through repeated buying and selling operations, I continuously accumulated profits, and now my assets have reached 20 million, effortlessly achieving a hundredfold return. This deeply taught me how important it is to master an effective analysis method in the crypto space; it is like a key that opens the door to wealth, allowing me to find my path to success in this market full of opportunities and risks.
If you don't have a good circle and first-hand news in the crypto space, I suggest you follow me; I'll help you get on the right track. Welcome to join the team!
#NewHighOfProfitableBTCWallets #USGDPDataOnChain #BinanceHODLerDOLO
