The crypto market is volatile, but classic investment rules still apply. Combined with the golden investment rules of legendary stock investor Peter Lynch, individual investors can also follow a stable strategy in the high-risk environment of the cryptocurrency circle. From understanding the fundamentals of the project to avoiding chasing high prices, Lynch's wisdom provides a clear path for crypto investors, helping us find balance and returns in a turbulent market.
1. Researching fundamentals is key : In-depth research on the project’s technical advantages, founding team, and future plans. Simply buying cheap stocks or tokens without understanding the project is extremely risky.
2. The advantage of individual investors lies in their unique knowledge and experience: As investors, they can use their understanding of new tracks and observation of the community to choose projects they are optimistic about in familiar tracks and seize project growth opportunities.
3. Pay attention to the company/project rather than just the stock price/coin price: Behind the stock is the company, understand how it operates rather than blindly betting on rising stock prices. Behind the token is technological innovation, development progress and community activity, not just the short-term price fluctuations of the token.
4. Avoid a gambling mentality: Investing heavily with a "gamble" mentality is prone to big losses. The crypto market is highly volatile, so avoid going all in or over-pursuing price increases.
5. Focus on long-term rather than short-term price fluctuations: Company performance and stock price performance are correlated in the long run. Short-term price fluctuations of crypto projects may be out of touch with the actual development of the project, but in the long run, high-quality projects will return to their actual value. Therefore, be patient with projects with long-term potential and avoid being affected by short-term fluctuations.
6. Stay on the sidelines when you can’t find opportunities: When you haven’t found a suitable investment target, keep your funds safe and wait for better investment opportunities.
7. Streamline your portfolio: Don’t hold too many stocks/tokens. Research in depth and keep an eye on the dynamics of selected stocks/tokens instead of spreading yourself across a large number of assets to ensure that you have enough understanding of each project.
8. Avoid chasing high prices: Stay away from popular tracks in popular industries, and look for projects/companies with substantial innovations in the field of technology, which have greater long-term growth value.
9. Be prepared for market declines: Market declines are also good opportunities to buy. Be mentally prepared. When the market falls, wait patiently for low prices to buy high-quality tokens instead of panic selling.
10. Don’t be shaken by the news: focus on the fundamentals of the company/project. Crypto market news is frequent and emotional. Don’t panic because of short-term negative news. Focus on the technical progress of the project itself and community feedback.
11.DYOR: More research can help you find good companies/projects. By deeply researching multiple projects, it helps to find potential coins in the future.
12. The longer you hold high-quality projects, the greater the returns: Holding stocks of good companies for a long time will bring greater returns. Similarly, the price fluctuations in the crypto market are large, but holding high-quality projects for a long time will help you get stable returns. In the case of missing out on early gains, long-term holding of high-quality tokens is still a sound strategy.
13. Choose mainstream stocks/tokens if you don’t have time to research: If you don’t have time to research emerging projects, you can choose mainstream coins with high consensus as long-term holding targets.
