Author Topic: Lessons to be learned from the rising digital currency market in 2017  (Read 8 times)

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1. The digital currency market is not a logical market



The digital currency market, unlike all the markets we have ever seen, operates and we must always wait for unusual and wonderful things in this market. I remember that in those green days of the market, many analysts were analyzing and using logical trading principles and techniques in their analysis, but in the end, their analysis turned out to be wrong.

This means that in the digital currency market, we must always be prepared for the most unpleasant events and always enter the market with capital that we can afford to lose. It is very important to set a limit on losses in digital currency transactions, and naturally, if we are not a vigilant trader, we will lose all our capital over time.

2- Always monitor the actions of experts and prominent people in this field

I remember that in 2017, Charlie Lee, the founder of Litecoin, started selling his Light Coins. He stated that he has donated his LightQueens to the LightQueen Development Foundation and wants to remove his financial incentive from the project. These remarks, while very honorable, are also very interesting. Charlie sold his Light Coins at the peak of his price, and after that, the price of Light Coins gradually went down. This has been a great lesson for me, and since then, I have always tried to carefully consider the actions of crypto experts and celebrities. It often happens that one of these experts buys or sells a particular coin, and other people in the digital currency community immediately follow the behavior of this famous person. This means that the actions of such people affect the market and must be taken into account.

3- If you do not have expertise and skills, do not trade

In that bullish and dreamy market of 2017, unskilled people entered the market, and these people, even in that extraordinary market, did nothing but lose. Trading without specialization and skills is more like gambling and eventually wastes one's capital. To trade in the digital currency market, you have to be trained and entering without training will sooner or later fail.

Many newcomers have heard about the digital currency market and its potential, and think that entering this market means making a profit and making a fortune. In response to these people, we must say that if that were the case, now everyone active in the digital currency market would be billionaires traveling to the Hawaiian Islands and around the world. The truth is that success in this market requires enough experience and knowledge, and in the first stage, we must train ourselves.

4- Harvest your profits step by step and avoid accumulating them

After making a substantial profit, try to withdraw your profits and stay away from things like tax trouble. Many people in the bullish market of 2017 accumulated the profits and finally could not withdraw these profits due to matters such as taxes, hacking, etc.

Withdrawal of initial capital, after making a lot of profit and doubling our capital, seems to many professional traders necessary and must be done. The regret of losing a lot of profit that has been accumulated for a long time is very strong and makes many people depressed.

5- Emotions and emotions are the biggest enemy of the trader

We are all human beings and emotions are in our nature. When the market is bullish and money is involved, these emotions overwhelm us and deprive us of the ability to make rational decisions. In the bullish market of 2017, many people were affected by their emotions and lost the fear of falling behind the caravan. Under the influence of exaggerated propaganda, these people bought various coins and participated in many initial offerings of coins that had no fundamental value, and in the end, the result was nothing but a loss of income.

6- If you are not a professional, avoid daily trading

If you are not a professional trader and do not have enough experience, you should not go for daily and short-term trading. Short-term trading only increases the fear and anxiety of non-professionals, and naturally long-term trading works better for people who are not very professional.

7. You only made a profit when you cashed in on your profit

I remember that in 2017, in a successful trade, I made about 70% profit, but I did not withdraw my capital and profit, and I felt that I could make much more profit. Little by little, the price of the particular digital currency I had bought went down, and I was finally able to exit the trade with a small profit.

8. Bitcoin halving is a very important event in the digital currency market

The Hawing event is an important event, and history has shown that after this event, the price of bitcoin has always been in an upward phase. Bitcoin is the king of digital currencies, and naturally its rise could mean the rise of the entire market. As bitcoin experiences a strong uptrend, Altcoins will follow suit and will experience a much stronger uptrend than bitcoin. So bitcoin moves and important events like Howing should always be considered by digital currency market traders.

9. Never forget diversification

The principle of diversification is very important in investing and should be observed as much as possible. During the bullish market of 2017, we saw many people who had their capital confined to only one particular coin, and their coin did not appear as expected. These people spent a long time looking at that lucrative market, with no money left for them to participate in other projects.

In the digital currency market, it often happens that the analysis does not turn out well and the projects do not appear as expected; This is where diversification helps and allows you to make a profit from other projects. Diversification in such situations reduces the loss of bad positions and allows better use of the market.

10- Increasing scams in ascending markets

What is interesting is that various scams also increase during the bullish markets. In the bullish market of 2017 and after the increase in the value of Bitcoin, the number of hacks and scams also increased. So in bullish markets and at a time when the value of coins in the digital currency market is rising, you should be careful about your assets and choose offline storage as much as possible. As the value of digital assets increases, scammers become more tempted to commit more scams.

11. Optimists and naive people begin to make predictions

In ascending markets and after the value of coins has risen, optimistic and simple people are making astronomical predictions on YouTube, telegram channels and in various parts of cyberspace, stating that the price of coins will go much higher. In the midst of the rising digital currency market in 2017, there were strange predictions about the price of bitcoin and other currencies, and I remember someone telegraming a channel and attracting a large audience, claiming that bitcoin up to It will reach one million dollars in another year.

12. One source should not be enough for research

In all markets, and especially in bullish markets, we see a lot of advertising about certain coins, and we must keep in mind that many of these ads are from people who pursue their own interests. Many people take money from various projects and advertise for them, or sometimes even good people may have a lot of a certain digital currency and advertise for it. So we should not trust anyone in this space and we should always rely on different sources for research. Relying on a resource can be very dangerous and can ultimately lead to losses.

13. Do not advise anyone to buy digital currency

During the bullish market of 2017, many people entered the market on the advice of acquaintances and relatives, and some of these newcomers, unfamiliar with the simplest principles of investing, after losing and losing their capital, began to accuse people who They were encouraged to enter the digital currency market. Always encourage people to read, and if someone wants to enter this market, tell them the importance of studying and learning, as well as the risks of this market.

14. Never keep your digital currency in exchange offices

Concentrated exchanges have been formed contrary to the blockchain philosophy and are a dangerous place to store coins. You should always use a wallet to keep your coins and have the private keys of the coins at your disposal. This is especially important in times of bullish markets because, as mentioned, hacking and scams are on the rise during these times, and of course centralized digital currency exchanges are also attractive prey for hackers. So finally we have to say that we have to take security seriously and pay much more attention to it in the bullish markets.