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Recently, the cryptocurrency market has experienced a significant correction, sparking in-depth discussions about investment strategies and risk management. This market volatility once again highlights the importance of risk awareness for individual investors.
Investing all funds into a contract account exposes serious deficiencies in risk management. Even if this time we were lucky to evade it, we may suffer heavy losses in future market fluctuations. Therefore, establishing a sound risk management system is crucial for long-term stable investment.
In the face of significant losses, an investor's primary task is not to hurry to 'make back the losses'. This mentality often leads to even greater losses. Instead, one should temporarily exit the market and give oneself some time to think calmly. Once emotions have settled and logic has become clear again, one can reassess the market situation and personal investment strategy.
For investors with idle funds on hand, it may be worth considering a moderate allocation to mainstream cryptocurrencies such as Ethereum (ETH). However, it is important to remember that any investment decision should be based on thorough research and risk assessment.
In the rapidly changing encryption market, staying calm and rational is more important than any technical analysis. The ability to control emotions is often a key factor that distinguishes successful investors from failures.
Finally, it is worth noting that other mainstream cryptocurrencies such as Bitcoin (BTC) and Binance Coin (BNB) are also worth paying attention to. However, regardless of which investment target is chosen, one should always remember the importance of risk management, avoiding putting all of one’s wealth into a single asset or strategy.