Beginner's Practical Guide: Selecting Coins, Trading, and Mentality Trilogy!

Many people often ask me how to select coins and trade in a highly volatile market. Today, I will systematically organize these questions into writing, hoping to help everyone.

First: The safety and stability of coin selection determine survival length

Many beginners are often attracted by the stories of the surge of various concept coins and meme coins after entering the market, but they overlook the potential risks. My suggestion is:

Newcomers must choose mainstream options, such as Bitcoin, Ethereum, and mainstream coins with strong liquidity and high consensus. Even in the case of extreme market fluctuations, they remain relatively stable and are less likely to face the risk of going to zero.

The selection of altcoins must be more cautious! Among thousands of altcoins, prioritize those that have existed for a longer time, have high project transparency, and possess a solid team background, referred to as "established altcoins." These coins have withstood the test of market cycles and are more resilient compared to new projects. Remember, your primary goal is not to get rich overnight, but to survive in the market.

Second: Timeframes for short-term and long-term trading

The root cause of many friends' losses lies in the confusion of timeframes.

If you are trading short-term, don't look at daily, weekly, or monthly charts. These long-term indicators have almost no guiding significance for short-term operations and may mislead you instead.

Short-term trading should focus on smaller timeframes, and I recommend paying attention to the 15-minute to 1-hour charts. These timeframes can more sensitively capture short-term price fluctuations and entry signals, aligning with the quick in-and-out rhythm of short-term trading.

However, if you are trading long-term, the situation is completely opposite—you should ignore short-term noise and focus on the trends and fundamental analysis of weekly and monthly charts.

The key is to clarify your trading strategy and choose a matching timeframe. The logic of short-term and long-term trading is entirely different and should not be mixed.

Third: Risk control and stop-loss are the starting points of trading

"Stop-loss is a must!" Please engrave these four words in your heart.

No matter how confident you are in a trade, there are always unpredictable black swan events in the market. A stop-loss is not an admission of failure, but a protection of your funds, ensuring you still have the opportunity to make a comeback after making mistakes!

Remember: The market is always right; we are the only ones who can be wrong. Staying humble and continuously learning is the only way to survive in the long term!

You can scan the QR code to contact me on Binance and join the chat room. Eight years of experience in the crypto space.