What should I pay attention to when Bitcoin breaks through historical highs according to legislator Ge RuJuns advice to investors
Just as Bitcoin continues to hit new highs, ChainNews is also constantly updating market trends for readers. As the market develops, it is attracting more and more users from outside the industry. Legislator Ge Ru-Jun recently posted on Facebook, giving advice to novice investors and mentioning the current regulatory framework in Taiwan.
“Stay away from speculation! Digital assets are just an asset allocation channel,” said Dr. Bao, addressing those already holding cryptocurrencies. He expressed that it is enough to be happy for one night. He then pointed out that the risk lies in the fact that there is no perpetual rise, only inevitable corrections, and reminded speculators not to use excessive leverage.
He also gave advice to users outside the industry on the mindset they should have when entering the cryptocurrency market. Firstly, digital assets are just an asset allocation channel. If you are still unclear about this and are only entering the market because of the huge returns, then please do not consider it as an “investment.” Additionally, it is recommended to prioritize using well-known platforms listed on the Anti-Money Laundering and Self-Regulatory Association of the Financial Supervisory Commission (FSC) for a more secure choice.
He also mentioned that if one decides to start getting involved, it is advisable to start with strategies such as regular fixed investment or small purchases. The amount should be controlled at 1% to 5% of monthly assets or income. He emphasized not to rush and not to go “All-in.” His personal recommendation is not to use leverage or borrow unless you are a full-time trader.
Regarding market cycles, he said, “Where there are bulls, there are bears. Fortunes change, and you can either take profits when you see them or hold for the long term. Unless you are a disciplined day trader, virtual currencies fluctuate rapidly, so do not easily engage in frequent trading. Your gains may not necessarily be higher than long-term holding, but what you may lose is your emotions and your family.”
He concluded by reminding all investors to be cautious of all external information, emails, various claims made by salespeople, and links. The author adds that, in addition to traditional scams, there are also many phishing links in the blockchain industry. He emphasized the need to verify sources and be careful not to be deceived. There is no such thing as a free lunch, and no one can guarantee profits. Anyone who guarantees “easy profits” higher than 8-15% is definitely not easy, and there may be high risks involved.
As for the progress of regulation in Taiwan, Ge Ru-Jun pointed out that from the first time the Financial Supervisory Commission requested the opening of overseas Bitcoin ETFs on March 4th this year, to requesting the Premier and the Central Bank to consider purchasing Bitcoin as a strategic reserve on October 20th, the government’s attitude has already become more relaxed. However, he believes that it can be even faster, especially considering how quickly the blockchain industry is changing in the world. If Taiwan does not accelerate its progress, it will be left behind without realizing it.
