Crypto Survival Guide: How to Stay Safe and Succeed! 🧠📉
In the crypto market, making money isn't everything; managing your funds properly and avoiding risks are equally important. If you want to stay in this market for the long term and achieve success, always remember these key points: Golden Rules for Survival: Invest All Your Money at Once? Use DCA(: Meaning: Never invest all your funds at one time. Why? The market fluctuates rapidly. If you invest gradually at different times using )Dollar-Cost Averaging - DCA(, your average purchase price improves, and you can avoid significant losses. Tip: Invest a fixed amount weekly or monthly, regardless of whether the market is up or down. Always Keep Stablecoin Reserves: Meaning: Keep some of your funds )that you have invested in crypto( in stablecoins like USDT, USDC). Why? When the market crashes or dips, your stablecoin reserve gives you the opportunity to buy good coins at lower prices. It acts as an emergency fund. Avoid FOMO and Hype Trades: Meaning: "Fear Of Missing Out" (FOMO), meaning when a coin's price is rapidly rising, avoid buying out of fear. Don’t rely on every news or social media hype. Why? Often, when a coin surges quickly, it’s driven only by hype and can fall just as fast. Entering such trades often results in losses. Choose Projects with Strong Fundamentals: Meaning: Invest in coins with good technology, real-world utility (utility), and a strong team. Why? Coins that only follow hype rarely last long. Those with solid (fundamentals) stand firm during tough times and offer better returns in the future. Risk Management is Most Important (Set a Stop-Loss): Meaning: Decide beforehand how much loss (loss) you can tolerate in each trade. Use a "stop-loss." Why? A stop-loss is a tool that automatically sells your coin if its price reaches your predetermined loss limit. It helps protect you from major losses. Setting a stop-loss is not a sign of weakness; it’s a sign of smart trading.
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Crypto Survival Guide: How to Stay Safe and Succeed! 🧠📉
In the crypto market, making money isn't everything; managing your funds properly and avoiding risks are equally important. If you want to stay in this market for the long term and achieve success, always remember these key points:
Golden Rules for Survival:
Invest All Your Money at Once? Use DCA(:
Meaning: Never invest all your funds at one time.
Why? The market fluctuates rapidly. If you invest gradually at different times using )Dollar-Cost Averaging - DCA(, your average purchase price improves, and you can avoid significant losses.
Tip: Invest a fixed amount weekly or monthly, regardless of whether the market is up or down.
Always Keep Stablecoin Reserves:
Meaning: Keep some of your funds )that you have invested in crypto( in stablecoins like USDT, USDC).
Why? When the market crashes or dips, your stablecoin reserve gives you the opportunity to buy good coins at lower prices. It acts as an emergency fund.
Avoid FOMO and Hype Trades:
Meaning: "Fear Of Missing Out" (FOMO), meaning when a coin's price is rapidly rising, avoid buying out of fear. Don’t rely on every news or social media hype.
Why? Often, when a coin surges quickly, it’s driven only by hype and can fall just as fast. Entering such trades often results in losses.
Choose Projects with Strong Fundamentals:
Meaning: Invest in coins with good technology, real-world utility (utility), and a strong team.
Why? Coins that only follow hype rarely last long. Those with solid (fundamentals) stand firm during tough times and offer better returns in the future.
Risk Management is Most Important (Set a Stop-Loss):
Meaning: Decide beforehand how much loss (loss) you can tolerate in each trade. Use a "stop-loss."
Why? A stop-loss is a tool that automatically sells your coin if its price reaches your predetermined loss limit. It helps protect you from major losses. Setting a stop-loss is not a sign of weakness; it’s a sign of smart trading.