BinanaceTradeSmarter
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To get rich from crypto, you must master 2 factors:
Source: @XtineFang - Managing Partner PSE Trading
Timing and Size
In the crypto market, making big profits is not simply about choosing the right project, but more importantly, it is about being at the right time (Timing) and betting with the right size (Size).
1. Timing – If you enter the order too early, you are considered wrong
Investing too early is no different from investing wrongly, because the market may not be ready and you may lose money or have to wait a long time to make a profit. Some typical examples:
👉Zhu Su (3AC) was too optimistic too soon: Three Arrows Capital (3AC) collapsed in June 2022 after misjudging the momentum of the market cycle. They thought the market would continue to rise, but in reality it was a prolonged recession.
👉Stanley Druckenmiller bought tech stocks at the peak of the dotcom bubble: He was right about the long-term potential of the tech industry, but because of the wrong timing, he still lost money or underperformed.
2. Size – If you bet right but too small, you still won’t get rich
Even if you choose the right asset to invest in, if you bet too small, you still won’t make a significant profit. Some real-life examples:
👉The CIO of a large crypto fund once shilled SOL at $15-$20, but the fund only returned 1.7x to LPs due to the small position size, while large order takers multiplied their accounts dozens of times.
👉Many retail investors only put 1% of their assets into crypto in 2019: Even though they were right about the market trend, because their bets were too small, they missed out on huge profits in the 2021 bull run.
Have you mastered both of these factors in this cycle?
If you are only good at picking projects but not good at timing, you will lose money. If you are good at timing but bet too small, you will not make much money.
What skills have you improved during this cycle?
#BinanaceTradeSmarter
Source: @XtineFang - Managing Partner PSE Trading
Timing and Size
In the crypto market, making big profits is not simply about choosing the right project, but more importantly, it is about being at the right time (Timing) and betting with the right size (Size).
1. Timing – If you enter the order too early, you are considered wrong
Investing too early is no different from investing wrongly, because the market may not be ready and you may lose money or have to wait a long time to make a profit. Some typical examples:
👉Zhu Su (3AC) was too optimistic too soon: Three Arrows Capital (3AC) collapsed in June 2022 after misjudging the momentum of the market cycle. They thought the market would continue to rise, but in reality it was a prolonged recession.
👉Stanley Druckenmiller bought tech stocks at the peak of the dotcom bubble: He was right about the long-term potential of the tech industry, but because of the wrong timing, he still lost money or underperformed.
2. Size – If you bet right but too small, you still won’t get rich
Even if you choose the right asset to invest in, if you bet too small, you still won’t make a significant profit. Some real-life examples:
👉The CIO of a large crypto fund once shilled SOL at $15-$20, but the fund only returned 1.7x to LPs due to the small position size, while large order takers multiplied their accounts dozens of times.
👉Many retail investors only put 1% of their assets into crypto in 2019: Even though they were right about the market trend, because their bets were too small, they missed out on huge profits in the 2021 bull run.
Have you mastered both of these factors in this cycle?
If you are only good at picking projects but not good at timing, you will lose money. If you are good at timing but bet too small, you will not make much money.
What skills have you improved during this cycle?
#BinanaceTradeSmarter
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