In a recent trade, I gained some new insights. First, for retail investors who are used to participating in a Zero-sum Game, projects with a market capitalization of tens of millions of dollars often exceed their comfort zone. Even if they buy in on the trend, they are likely to sell too early due to psychological pressure.



Secondly, it is crucial to maintain independent thinking in the cryptocurrency market. I have found that it is often not my ideas that bring me profits, but rather the decision to hold on to my investments that ultimately yields substantial returns.

Thirdly, the capital allocation strategy also needs to be adjusted. I believe that the majority of funds should be invested in projects with clear prospects, while a small portion should be used for high-risk, high-reward short-term trading.

Fourth, engaging in short-term operations on an asset that is continuously reaching new highs is extremely dangerous. This approach is likely to miss out on major trends, resulting in potential loss of profits.

Finally, if you want to achieve relatively stable returns in the cryptocurrency market, you should invest your time and energy in researching projects with solid backgrounds and development potential, rather than overly focusing on short-term on-chain data analysis and quick trading.

These lessons remind us that in the cryptocurrency market, long-term value investment strategies may be more beneficial for the steady growth of assets than frequent short-term trading.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 7
  • Repost
  • Share
Comment
0/400
TokenEconomistvip
· 17h ago
actually, this is a classic case of prospect theory in crypto markets... the fear coefficient > rational valuation
Reply0
MentalWealthHarvestervip
· 08-19 06:51
You lose when you act, you earn by doing nothing.
View OriginalReply0
DataBartendervip
· 08-19 06:49
I’m numb from the losses.
View OriginalReply0
RamenDeFiSurvivorvip
· 08-19 06:48
Move a small stool to eat with Large Investors!
View OriginalReply0
AirdropHunter007vip
· 08-19 06:26
You hit the nail on the head, I sold too early.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)