As the Spring Festival approaches, the crypto market has started a small spring rally. At the end of the year, the market finally gave out a market bonus. Standing at this time point, looking back on my crypto experience this year, I believe everyone can't help but swear. It has been a whole year of bear market, and the market has fallen by more than 60%. If your assets have not fallen so much, you can say that you have beaten the market.
However, I believe that more than 90% of people do not participate in investment. Going against the trend, it is really difficult for those who just hold coins and trade to make money. But the old people in the circle will say that the money from the cycle may be the easiest to make, because the cycle is really too obvious.
1. Where are we? The Big Cycle
Let's look at the price trend of Bitcoin and the halving cycle of Bitcoin. The market bottoms out about 470 days before each halving. Then a big bull market begins. The next halving will be on April 20, 24. According to this calculation, the bottom is on December 30, 2022. The recent rebound is quite fierce, and it has gone out of the bottom range in half a month. Of course, if the market after the halving is a big bull market, then it may still be called a bear market now.
However, judging from the price trend, our industry is actually short on bears and long on bulls. In my personal definition, we are now in the first half of the bull market. The overall outlook for 2023 is too optimistic, and it will only be much better than 2022. I don’t know whether the next round of the market will be 100,000 dollars or 200,000 dollars, but we know that good days are coming.
If you haven't left the market in the bear market, I hope your position will still be there in the future bull market. At this moment, the biggest loss is to leave the market with your capital.
The halving can be said to be the strongest narrative inherent in crypto’s fundamentals, and all users’ impression of making money in previous cycles is getting closer and closer.
From a macro perspective, the driving force of the crypto cycle actually comes from the leverage of funds. The peak of the bull market is the extreme of leverage. The bear market started because of deleveraging, the liquidation of the first wave of leveraged funds, and the deleveraging of the continuous decline and bear market has created a bottom. The faucet of funds in the world is the Federal Reserve. Now we are at the top of the interest rate hike stage. I have shared the forecast dot chart of FOMC in the previous live broadcast.
2023 is a transition year. This year, the interest rate will reach its highest point in the middle of the year, and funds will be tightened to the extreme. The interest rate will remain high in the second half of the year, and it may also start to cut interest rates. Water will continue to flow from the tap. The resistance to leverage will be small. The bull market has begun. You are standing here, and all you need to do is prepare the principal and buy at the bottom.
2. Blockchain dividends
The money in the big crypto cycle is an easy model to understand and earn, but as a senior front-line crypto person, I want to say: blockchain dividends are not just Bitcoin and Ethereum. The mature applications and explosive dividend trends on it are the main driving force for attracting new traffic.
From DeFi mining, to new public chain competition, to games and NFT, and DAO sector. DeFi has thousands of percent of profit, and GameFi has 7 days to pay back the investment, and 5 times a day. There are too many opportunities to make a fortune from 0 to 1, and then from 1 to 100.
At this point, there are still many narrative opportunities to look forward to, including infrastructure, the battle between L2 and meta public chains, as well as NFT finance for ecological applications, derivatives markets, blockchain games, etc. Even the new centralized exchange competition landscape may see new changes.
Everything has just begun, all opportunities are brand new, and all new project dividends will be captured by the first-line players who are still deeply involved in the encryption market. It is obvious that the bull market has never rewarded fresh leeks, but industry veterans who have already laid out in the market.
There are many ways to make money in the circle, such as airdrops, new listings, cryptocurrency speculation, NFT, arbitrage, fixed investment holders, Tugou meme, DeFi mining, industry practitioners, etc. The market is currently in the initial maturity stage, but it has derived so many subdivided and professional fields. Maybe everyone is in the same circle, but they may not know how their peers are making money.
The industry is continuously developing, and those who lag behind will naturally not be able to get a share of the benefits.
The industry is becoming more and more advanced, and it is increasingly difficult for individual investors to survive in the market. Even if we operate as a team, we still have some weak areas. In the ever-changing market, even if we are online 24 hours a day, there will still be information overload. There are endless dazzling projects, but the projects that can really make money require careful analysis, timing, and strategy. There may also be cooperation with external teams and resource docking. Only then can the strategy be truly implemented and the benefits be pocketed.
What is the bonus? Simply put, it is like helicopters dropping money. When dropping money, we certainly hope to build more buckets to catch the money, rather than just picking it up with our bare hands. There is at least a 100-fold difference. If making money is very tiring, then there is something wrong with you. Money comes from the wind.
3. Key points to making money
Our community articles have previously written about the three stages of making money in the circle: information gap, cognitive gap, and execution.
We are increasingly finding that if we simply rely on information speculation, we will fall into involution and be overloaded to death. Too much information seems to be able to guide our investment decisions, but frequent transactions often lead to the difficult situation of gambling dogs, rather than enjoying dividends.
Now we compete more on cognition and implementation. Cognition means knowing what are good opportunities and what are bad opportunities, knowing whether they are worth taking, and if so, how much position I should take, as well as the exit plan.
I always believe that for most people, mediocre opportunities are not opportunities, and everyone certainly does not have the time and energy to try all kinds of opportunities. The real opportunity must be to concentrate on doing big things. I don’t care how much money you have. If you can only play 1%-2% of the opportunities each time you play a project, it is better to select one of the 10 projects and take 10% of the positions, which will greatly improve your winning rate and reduce energy dissipation.
Making money from good projects and doing positive things is the way that is truly suitable for ordinary people.
Of course, most good projects are those that everyone agrees on. Good projects are good, but everyone is frustrated by the difficulty of execution. Without technology and manpower, it is impossible to increase the volume and number of projects. Without the problem of mass production, how can the benefits be magnified?
In fact, if you only stay at the idea of solving problems by yourself, your personal ceiling is very low. Why not think about finding a partner? What problems can you earn by yourself? What problems can you solve by yourself? What money can you not earn by yourself, but can find someone to help you solve it? Think about these questions, and you can make more money. Whether in the crypto circle or in real life, the principles are the same.
If you want to make money, the problem is not the superficial difficulties you encounter, but whether you really want to make money and are determined to put it into practice and change.
2023 is a transitional year for crypto and also a year of change. In the new year, we still firmly believe that there will be many good opportunities in the market, and we still choose to go All In Crypto.
What should be ALL IN is a person's passion, focus, and professionalism, rather than just betting all one's assets.
That's all, Dyor.
Author: Chad, Twitter @chad1997y; Editor: Gemini, Twitter @Gemini0x17