After staying in the cryptocurrency space for a long time, you will find the true state of this industry: the vast majority of ordinary people lose money after entering the industry.
Pay close attention to the many voices in the community that are losing money and being trapped. Even if there are short-term profits, it is difficult to achieve overall profitability after a year.
So why does this happen? Wasn't it easy to see others making money when entering the space?
Today, let's analyze this from the perspective of cognitive thinking!
The first common mistake is to underestimate the market!
The threshold for entering the cryptocurrency market is low, and after most investors enter the industry, they generally trade directly. Very few choose to first learn investment knowledge, understand K-line trends, and figure out how to make money and how to lose money. Therefore, from a psychological perspective, they underestimate the professional difficulty of investing. The reason for this underestimation may be that after entering society, they have already developed some abilities in a certain field or achieved small successes, leading them to believe that they can easily succeed in the investment field as well.
In reality, when we enter any new field, we are all novices who need to calm down and learn humbly because we underestimated the market. Many investors only need one wrong trade to incur losses that may take years to recover.
The second common mistake: finding the wrong reason!
Generally, after losing money in trading, everyone will reflect and summarize their experiences, but the direction is wrong.
For example, several years ago, many people bought houses, and in recent years, property prices have generally shrunk with high interest rates. At this time, everyone will say it is because of the poor economic environment and market conditions.
When business is bad, they will say that business is becoming increasingly difficult, competition is too fierce, and the economy is poor. Have you noticed that everyone avoids mentioning their own reasons, not understanding the real estate financial cycle, and thus became a victim? They do not adapt their business to the times and end up losing money. Conversely, when making money from buying a house, they will believe it is due to their good judgment and ability, never thinking it is market trends. From this, we can see that people generally prefer to find reasons externally rather than looking for problems within themselves.
Thus, many investors lose money in the cryptocurrency space and summarize their experiences entirely based on external reasons, without identifying the root causes of the problems, which lie within their abilities, skills, cognition, mindset, and so on. They always seek external explanations, causing them to summarize more and lose more, leading them further down the wrong path. So where is the opportunity for ordinary people?
Although the cryptocurrency space is full of risks, ordinary people do not have no opportunities at all! The key lies in enhancing cognition, choosing a suitable track, and strictly controlling risks.
The most important thing here is to 'enhance cognition'!
Success in the cryptocurrency space largely depends on insight into projects and the market. Chain King + 0xSun have lamented several times on Twitter: choice is greater than effort.
The reason is that he himself is a vivid example. He was exposed to the cryptocurrency space during college and persisted, while years later, when his classmates were still looking for jobs and seeking higher salaries, 0xSun had already made a name for himself in the cryptocurrency space.
Ultimately, during the Trump coin era, years of accumulation completely erupted, achieving a leap in wealth and obtaining financial freedom.
The final result is not achieved overnight, but is the result of years of sitting and accumulating knowledge on the chain, allowing him to seize a big opportunity and dare to invest large sums.
These are decisions made only after continuously enhancing cognition, while the opposite example is myself. When Trump was at 3, I had already completed my analysis and participated, but ultimately, under the influence of market sentiment and insufficient cognition, I sold out completely at 6.
In the end, in this unprecedented narrative, I did not achieve significant returns; I only doubled my investment.
In hindsight, I regretted it, but it was too late!
But this made me realize the importance of cognition and analytical ability in the cryptocurrency space!
If another bull market comes to the cryptocurrency space, can you seize it?
If another bull market comes to the cryptocurrency space, can we really seize the opportunity?
After careful consideration, my answer is: it depends on whether you (I) are always prepared. There are many opportunities in a bull market, the overall market sentiment is high, and both quality and garbage projects are flourishing.
But only if you and I keep learning, fully understand market cycles, learn to identify quality projects, and adhere to investment strategies without being swayed by emotions can we achieve satisfactory results in a bull market. The breaking point for ordinary people lies in whether you continuously enhance cognition and learn! Also, choose a suitable track for yourself and manage risks correctly.
The most important thing is long-term persistence. The success of ordinary people does not rely on the fantasy of getting rich overnight, but on the accumulation of cognition and experience!
