Parachainglobal：How do new players configure digital currency?

 For novice users who are new to the currency circle, Parachainglobal recommends that you invest some of your idle funds.

 

New users should try not to put their eggs in one basket when allocating assets, and learn to allocate different encrypted assets in different positions to reduce investment risks. If you have 1,000 yuan of idle funds, then you can take out most of the funds to invest in mainstream currencies, such as Ethereum, etc. If you recognize the value of mainstream coins, you can consider lengthening the investment cycle. The remaining small amount of funds can be used to allocate altcoins. However, since altcoins are usually volatile, you need to pay attention to risk control. When you do not have full confidence and experience, it is recommended not to hold them for a long time. Risk is not acceptable to all investors.

 

"Don't put your eggs in one basket" actually has the second half of the sentence, that is - "But don't put your eggs in too many baskets". Asset allocation is actually the use of risk differences between different assets to reduce the overall risk and reduce the volatility of the investment portfolio. The real diversification of investment is to choose the differentiation of investment platforms and wealth management products, and to diversify investments in terms of platform type, product type, investment period, expected return and other aspects.

 

After understanding the configuration of encrypted assets, new users also need to pay attention to the entry time. Choosing a better entry time can often get more benefits. If you are a new user who has done enough homework to understand and recognize the concept and value of encrypted assets and is ready to enter the market, then in fact, every market crash is a good time to enter the market. Properly extend the investment cycle and don’t care about short-term Volatility in exchange for greater gains; if you are a novice user who has little knowledge about crypto assets, but only heard of popular coins such as Dogecoin, Dogecoin, etc., then you need to understand the entire market trend and the historical price trend of the crypto assets you want to invest in At the same time, you should also obtain the latest news in time to assist you in your judgment, buy low and sell high, and earn profits according to market fluctuations. Of course, the market of encrypted assets fluctuates greatly, and you need to pay attention to risk control.

 

Whenever there is a big fluctuation in the crypto market, position management and mentality management are extremely important.

 

Many investors regard making money as the primary purpose of investment. In fact, this is not the case. Warren Buffett, the stock god, once shared his investment philosophy, which is to keep the principal, and the same is true for investing in encrypted assets. When the market fluctuates greatly, our primary purpose is to preserve the principal. Then comes the profit. Every qualified investor needs to build a position management system of his own. No matter when you must remember it strictly, many people know the method of compound interest to increase positions. This method is equivalent to abandoning position management, so you must do it at this time. To absolute strictness, the ending of abandoning it is bound to be lost.

 

In addition, mentality management is a point that many investors often overlook. Some investors who have some understanding of the K-line analyze trends or technical aspects, and they can be said to be righteous, such as left, right, Fibonacci retracement, etc., but if they cannot manage their mentality well, then investors will be extremely One or two mistakes in judgment may lead to great frustration and self-doubt, and even affect investment and financial management for a long time in the future. After all, people are not gods and cannot make every judgment accurate. If investors can properly manage their mentality, even if they make a few misjudgments, they can quickly clean up their mood and get back on their feet. Mentality management can make investors more confident in trading.

 

Good mentality management such as thinking about risks, accepting risks, resisting FOMO emotions, eliminating illusions, managing profit expectations, etc. The ancients said, "Because the generals don't think about victory before they think about defeat, they can fight a hundred battles without danger." On the contrary, if you don't accept risks, you avoid them, and the consequences may be catastrophic. For example, investors who like to avoid risks are often prone to FOMO when the market is in good condition, that is, seeing a certain encrypted asset rising one after another and have a chasing psychology, this kind of blind buying behavior without analyzing the market. It is likely that investors will feel remorse when the crypto asset falls.

 

Conclusion: As a novice user who is about to enter the market or has entered the market, not only must comprehensively review mainstream coins like Bitcoin, but also have a deep understanding of the use and value of other blockchain projects. When you recognize the area you are studying When it comes to the value of blockchain projects, such as the popular, NFT, Polkadot and other sectors, then your investment confidence will be more sufficient, and your awareness of risks and the point of stop profit and stop loss will be clearer. Of course, like investing in other varieties, crypto asset investment is not only profitable, but also has risks. Therefore, investors should pay attention to position management and mentality management, and control risks reasonably.

 

 

Parachainglobal is investment and trading platform, providing investors with a compliant, safe and high-yield trading platform. Website:https://web.parachainglobal.com/#/index