There are too many spam messages on the square, which is really unfriendly to newcomers. I want to say something to new friends. If you are a novice in the cryptocurrency circle, please read it patiently.
First of all, it is a cliché, please do spot trading. Of course, I know you can't help it. After all, it is a bull market now, so leverage can be added, but please set a time limit.
If you spend one hour a day in the cryptocurrency market, the average profit you get in this hour should exceed your real-life job remuneration (hourly wage quick calculation: hourly wage = monthly salary/22 working days/8 hours). So if you don’t have much starting capital, leverage can help you grow your principal faster in a bull market. Until you find that the average profit of spot trading can cover your time cost, then from this point on, please gradually deleverage - you didn’t feel bad if you lost money before, but you shouldn’t take this risk in the future.
I don’t want you to call yourself a leek, this is just the self-mockery of the old leeks. In the eight years since you were away, the blockchain industry has been in a stage of numerous dangers and many losses.
Realists come here, hoist a big banner, and put forward a concept. Even if they know nothing about the technical details and are indifferent to the practical significance, it does not prevent them from wanting to take advantage of the trend to make some money.
This situation still occurs today, but the situation has visibly improved. Conservatives have to face up to cryptocurrencies, regulatory mechanisms are becoming more mature, and technology is in full bloom. RWA links blockchain and real assets, and one day it will get rid of banks and intermediaries, reducing costs and increasing efficiency for ordinary people's financing.
Countless talented engineers will sooner or later solve the asynchronous response defects of blockchain. At that breakthrough moment, Game-Fi will be widely stationed in online games and even the AI-driven metaverse. It will sooner or later appear beside you. You see, all these popular concepts are actually used to solve real problems. So please don’t regard this as a casino for making quick money. I really think that the cryptocurrency circle is suitable for making money for buying a house, but not for buying food.
What I want to say is that we have been here for too long, and we have all forgotten why we embraced blockchain in the first place, because many times, experience only brings fear and prejudice to people. My new friend, I hope you can keep your spirit. To be realistic, only when you have spirit can you dare to believe in the future and not sell out (selling out means selling a certain coin on the eve of a surge). So the first step is to start with "don't call yourself a leek".
The second step is to make your own independent judgment, regardless of whether it is accurate or not. You will see many so-called KOLs on Binance, Twitter, and Telegram. You don’t need to read a word they say, because everyone has already identified it for you.
For example, Binance’s market information KOLs are just middlemen of information, including half of the so-called institutional accounts. Odaily is criticized by name here. Looking at the plagiarism methods and writing style between the lines, it can be determined that they themselves do not understand the practical significance of what they post, and are merely parroting others.
Half of the KOLs who shout orders (referring to publishing some so-called good news and recommending you to buy certain coins) have heavy positions at high prices and ask you to buy them, and the other half will follow the trend and publish some outdated second-hand news to gain fame. Just like the barefoot doctor in the village who treats infertility, he charges money if the baby is born, and does not charge money if the baby is not born. Naturally, half of the people regard him as a famous doctor.
Except for the official account of the project, all other Twitter accounts can be blocked directly. Please remember that the good news that retail investors can know has already passed the time limit. Of course, it is not ruled out that some meme coins will indeed soar all the way because of the shouting of a big shot, but to be honest, it is difficult to catch up. Most people who want to chase this kind of hot spot are stuck at a high position.
Your independent judgment should be based on, and only on, the white paper and current market value.
Please calm down and read a white paper carefully. It is very convenient to use Google Translate. You don’t have to fully understand it the first time you read it. Focus on the same section and read several more. For those recurring terms, go to B station and search. Most of them have very popular explanations.
Focus on technical innovation and feasibility (please study it yourself before making a judgment), current progress (what step has been achieved), team background, partners, community size, compliance audit and supervision system. These are what we call project narratives. Here, the quality of project narratives is the core basis for the valuation of a currency.
Then you can compare it with the leader in its sector. If you think it is good and the technological innovation has indeed solved the current pain points, then you have a coin that you are optimistic about. Then you can check the highest market value of similar projects in the current sector, and this is your target price. Remember, the value of cryptocurrency is meaningless.
We talked about pain points before. Pain points refer to understanding the ultimate goal of a sector and clarifying what technical problems need to be solved and what infrastructure needs to be built in order to achieve the goal. In this analysis step, you will gradually understand what is the main chain, what is the side chain, what is a dApp, what is an oracle, etc. Please try to understand and remember, you will need it.
You may hear something like "this is an emotion-driven market", but don't take it to heart. There are two types of people who say this. One type of people did suffer from value investing during the eight-year war of resistance against Japan. There is no way, any innovation is likely to fail, but as I said, please protect your spirit. The other type of people are gamblers who are too lazy to read, don't understand, and have to treat this as a casino, after all, the gambling threshold is lower. What you want to earn is actually their money. Emotions are fuel, a rotten stone, even if you pour a ton of wax on it, it won't burn.
Please remember that your means are spot trading. Leverage can only be used during the start-up period, and contract trading is not allowed. With the mentality and risk management skills of most people, no matter how many times you win, you will lose everything at once. Losing money is a small matter, but once you have touched contracts, you will feel that any stable investment strategy is too slow to make money, and eventually return to contracts, and then leave the market with a margin call. I hope you can protect your trading life, protect your intelligence, and protect your spirit.
