1. The stop loss line is a lifeline, and emotional management is an oxygen mask.
Stop loss: a hard rule of 3%
Newbies love to hold positions, always thinking "just wait a little longer to break even." But math is cruel: a 50% loss requires doubling to break even, and a 90% loss requires ten times! I've seen people leverage to chase Bitcoin, blowing up over $1 billion in a single day, all bloody lessons. My iron rule is: any position that loses more than 3% is automatically cut. This isn't advice, it's survival—stories of losing tens of millions in the cryptocurrency market unfold daily due to extreme volatility.Feeling down? Stop immediately!
Adding positions when losing is like sending your head to the dealer. True experts are like machines: set alerts when opening positions and close the software when done. Cryptocurrency prices fluctuate wildly and are often used for speculative trading and illegal activities like pyramid schemes, so investors need to stay calm and rational. Remember, those who act on emotions have been eliminated by the market long ago.
Second, don't fall in love with a currency; small positions are the way to go for a long battle.
Treat currency as a tool, not as a 'white moonlight'.
Investing heavily in a certain currency is like falling in love; it won't hurt you when it drops, and it won't remember you when it rises. My rule is: withdraw the principal once profits exceed 20%, and run if the trend breaks. Those projects disguised as 'stablecoins' or 'blockchain' could be illegal fundraising or Ponzi schemes, so be highly vigilant.Leverage is poison, not honey.
Don't believe in 'getting rich overnight with 100x leverage' — I've seen people make money this way, and I've also seen them jump off rooftops. Now, my positions don't exceed 5%. The high leverage and contract trading mechanisms in the virtual asset market make market fluctuations more severe. Ordinary investors lack risk control and tolerance, so they should participate cautiously.
Third, review daily: the market eliminates people every day.
Why no stop-loss? Why chase after gains? Why not follow the plan? These questions should be asked of yourself every day. The market eliminates people without saying goodbye; if it hasn't happened to you today, it's just luck. More reflection can help avoid stepping into the same pitfall. The regulatory framework for virtual currency investment is still not perfect; any small disturbance can affect price fluctuations, and investors need more knowledge and a clear judgment of the industry's prospects.
Risk and opportunity coexist: the cold truth of the cryptocurrency circle.
The cryptocurrency circle is not just about getting rich quickly. Some criminals, under the banner of 'virtual currency can bring windfall profits', lure new users into groups through blockchain virtual currencies and 'risk-free tokens', engaging in illegal activities. Virtual currencies are not issued by monetary authorities, are not legal tender, do not have the same legal status as legal currency, and cannot be circulated as money within our country. The prices of virtual currencies fluctuate wildly; investors should enhance their risk awareness and identification ability and must not participate in activities related to virtual currencies.
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