A reminder for everyone, especially for newcomers. Cryptocurrency investing may seem full of opportunities, but the risks are much greater than you think. Many people only focus on how much they can make but ignore the possibility of losses. This is something you must think through before entering.
First, the money you invest must be idle funds—money you can afford to lose entirely. This is the first line of defense and the most important one.
After entering the market, there's a common pitfall—don't think about constantly adding to your position to lower your average cost. When the market drops, it's easy to lose your composure, and throwing more money in often leads to worse results. Resisting this impulse is crucial.
Regarding take-profit strategies, my advice is this: when profits exceed 30%, sell a portion to recover your principal. This way, even if there's a loss later, the money you earned is protected. It will give you peace of mind. If the market performs exceptionally well and profits surpass 50%, then it's time to consider taking profits and securing your gains. Wait for a clear entry signal for the next position.
One last point—don't celebrate excessively when making money, and learn to accept losses. Staying clear-headed and not being driven by emotions is the key to surviving long-term in this market.
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RektHunter
· 3h ago
Well said. I've stepped into that trap during rebalancing, a painful lesson learned.
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AirdropHermit
· 4h ago
That's right, 30% should be when you take half off. I'm the kind of person who can't resist, always wanting to squeeze out a little more each time.
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PortfolioAlert
· 4h ago
That's true, but very few people can actually do it. I have a bunch of lessons learned from previous experiences around me.
As for adding to your position, it's the easiest way to trap yourself. Greed is the original sin.
When it reaches 30%, you should sell half. This trick is indeed brilliant.
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LiquidationOracle
· 4h ago
That's true, but among ten people who can actually do it, at most two have the right mindset. The mindset is the hardest part.
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DeadTrades_Walking
· 4h ago
There's nothing wrong with that, but the number of people who can truly do it is painfully few.
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potentially_notable
· 4h ago
That's right, I've stepped into that trap of adding to my position before, and going all-in in one shot really ends badly.
A reminder for everyone, especially for newcomers. Cryptocurrency investing may seem full of opportunities, but the risks are much greater than you think. Many people only focus on how much they can make but ignore the possibility of losses. This is something you must think through before entering.
First, the money you invest must be idle funds—money you can afford to lose entirely. This is the first line of defense and the most important one.
After entering the market, there's a common pitfall—don't think about constantly adding to your position to lower your average cost. When the market drops, it's easy to lose your composure, and throwing more money in often leads to worse results. Resisting this impulse is crucial.
Regarding take-profit strategies, my advice is this: when profits exceed 30%, sell a portion to recover your principal. This way, even if there's a loss later, the money you earned is protected. It will give you peace of mind. If the market performs exceptionally well and profits surpass 50%, then it's time to consider taking profits and securing your gains. Wait for a clear entry signal for the next position.
One last point—don't celebrate excessively when making money, and learn to accept losses. Staying clear-headed and not being driven by emotions is the key to surviving long-term in this market.