Investment advice from a veteran player: don’t be highly leveraged

I hope readers who have the opportunity to read this will take these suggestions to heart and keep honing and improving themselves in practice, especially in the rapidly iterating field of cryptocurrency, where opportunities are always available.

Investment advice from a veteran player: don't be highly leveraged

Today I share with you the last two suggestions of this series. I have mentioned these two pieces of advice repeatedly in my articles before, but it is never too much to share them with you again, because it is always advice that every one of us investors should keep in mind.

“Don’t operate with high leverage.”

As mentioned in the previous two articles, investors who feel they are “too late to the game” are prone to find ways to get rich quick by finding 100x coins or 1000x coins, and another type of investor is prone to high leverage.

Some people think: I missed $200 to $2,000 in ethereum? I missed out on $5,000 to $50,000 in Bitcoin? That’s fine, let’s use a 10x leverage and get $20,000 from $2,000, isn’t that the same as if we bought Ether at $200 and got $2,000?

Big mistake.

While leverage can allow us to make excessive gains, it can also easily lead us into the abyss of ruin.

In my opinion, the first rule to remember for ultimate success in digital currency investing is that we should never do operations that could get us out of the game completely, but keep our positions healthy so that we can stay here and have a chance to find our own opportunities.

High leverage can easily keep us from ever turning around.

“Must know what I’m buying myself.”

One of the major reasons why a small investor can easily lose his chips is that he does not know what he is buying, that is, he does not know the true value of the chips he is holding.

It takes conviction, confidence and a heartfelt understanding and belief in digital currencies and the industry to be able to take it easy when the market is down 20%, 30% or even 40%, and to believe that tomorrow will be bright when the bear market lasts for one, two, three or more years.

This is the hardest part.

How can we improve our knowledge and deepen our understanding? We need to drill down and we need to learn.

Only when we establish an “intimate relationship” with our investments and understand what we are buying can we weather the storm, withstand the volatility, restrain our fears, fearlessly doubt, and see through all the “uncertainty” that permeates the market.

When senior players say: Well, that coin can go up 100 times. Do you know why it can go up 100 times? Do you yourself believe it can go up 100 times? Can you believe it will still go up 100 times when it drops 50%? These are the questions that test our own soul to see if we really understand a species.

When you can answer these questions yourself, you will no longer ask others: Can XX coin still be held, can XX coin still rise, is XX coin no longer viable?

When we think clearly about these questions, we can go to sleep quietly and will not be disturbed by market emotions.

When I read the above two paragraphs of the author, I couldn’t help but think of the person I used to be, and the various past events and investors I’ve encountered in the process of writing articles over the years.

I hope readers who have the chance to read them will take these suggestions to heart and keep honing themselves and improving themselves in practice, especially in this fast iterating field of the cryptocurrency world, where opportunities are always available.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/investment-advice-from-a-veteran-player-dont-be-highly-leveraged/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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