Newbies blindly following trends in the cryptocurrency market can easily incur losses. To escape the fate of being a 'retail investor', one must establish their own investment system. This system mainly includes the following four aspects:

Step 1: Choose the right targets

Choosing coins determines returns, and junk projects should be avoided. Quality projects should be evaluated on three points:

1. Technical strength: Understand technological innovations and team backgrounds through white papers, avoiding purely imitative projects.

2. Application scenarios: Projects should have real implementation scenarios that can solve actual problems; beware of purely conceptual coins.

3. Ecological development: Check on-chain data (user numbers, transaction volumes, etc.) to assess the project's real popularity and development potential.

Step 2: Manage funds well

Fund management is key to avoiding losses:

· Invest only with spare money; it is recommended not to exceed 10%-20% of disposable income.

· Diversify allocations based on risk levels (such as core assets, potential assets, risk assets).

· Control positions; core assets can be slightly heavier, while potential and risk assets should be light.

Step 3: Strictly control risks

Set clear stop-loss and take-profit mechanisms:

· Stop-loss: Set stop-loss lines based on asset types (core assets 20%-30%, potential assets 30%-40%, risk assets 40%-50%); exit decisively if breached.

· Take-profit: Set reasonable take-profit targets (like core assets 50%-100%); after reaching the target, profits can be locked in batches.

· Review: Summarize operations regularly and optimize strategies.

Step 4: Stabilize mindset

Mindset is the key to long-term profitability:

· Stay rational, avoid chasing highs and panic selling; conduct research before buying and selling.

· Be patient; investing is a marathon, reject fantasies of getting rich overnight.

· Overcome greed and fear; know when to take profits and cut losses.

Building an investment system requires continuous learning and practice. Do not be eager for quick results; accumulate experience step by step. Later, Sister Lin will share more practical tips to help you stay away from being a 'retail investor' and achieve stable profits. #加密市场观察 #加密市场反弹