Real-world experience in the Crypto market:
- Determine when to take profits: When daily trading volume exceeds market cap, it is often a sign that the upward wave is coming to an end. The market needs to adjust and accumulate before continuing to grow.
- Don't get too attached to a coin: Most altcoins will gradually go to zero, especially when the market is flooded with projects that have high FDV but no liquidity increase.- Avoid shorting small market cap coins: Small coins are easily manipulated by market makers, posing risks for those who short.
- Take a break when losing: When encountering a series of losses, instead of rushing to recover, stop and stay calm. Bottom-fishing when trying to recover often leads to heavier losses.
- Choose promising projects in a downtrend: Projects that grow well often launch during downtrends when valuations are reasonable and developers are still actively working. This creates great opportunities when the market enters a growth phase.
- Investing in new coins is easier: New coins often have high expectations for technology, whereas old coins must continue to build to stay relevant. However, new coins can fall into a "slowrug" phase if FDV is high.
- Diversify your portfolio: Have one coin in each sector of your portfolio to avoid getting distracted when seeing other coins rise while yours remains still.
- Be patient with the accumulation market: About 80% of the time, the market is sideways, so buying today doesn't mean it will rise tomorrow. Patience is key when a good price is available.- Don't be too obsessed with large market caps: If the project has potential, in an uptrend season, market cap can reach tens of billions of USD without difficulty.
- Keep updated with news but don't get swept away: Read the news daily to keep track of market developments, but don't FOMO or worry excessively due to FUD news.
- The market is manipulated and relies on intuition: Often what you see in the market is just what market makers want you to see. Trust your intuition after gaining enough experience.
- Margin/Futures can be addictive: Margin can be tempting due to quick profit numbers, but very few people actually make money from margin, and even fewer can sleep well when participating.
