After staying in the cryptocurrency market for a long time, you will discover the true state of this industry: the vast majority of ordinary people lose money after entering the market.
Carefully observe that many voices in communities express losses, and even if there are short-term profits, it is difficult to achieve overall profitability over a year.
So why is this the case? Wasn't it easy to see others making money when entering the market?
Today, let's analyze this from the perspective of cognitive thinking.
First, the most common mistake: underestimating the market.
The threshold for entering the cryptocurrency market is low, and most investors basically engage in direct trading after entering.
Very few people choose to learn investment knowledge first, understand candlestick patterns, and figure out how to make money and how to lose money in investments.
Therefore, from a psychological perspective, one underestimates the professional difficulty of investing.
The reason for underestimating may be that after entering society, one already possesses certain abilities in a specific industry or has achieved small successes, leading to the assumption that they can easily navigate the investment field.
In reality, when we enter any new field, we are novices and need to calm down and learn humbly.
Because I underestimated the market, many investors just need one wrong trade leading to losses, which they might not recover from in the following years.
The second common mistake: finding the wrong reasons.
Generally, after losing money in trading, everyone will reflect and summarize their experiences, but they get the direction wrong.
For example: A few years ago, many people bought houses, and in the following years, housing prices generally depreciated, with high interest rates. At this point, everyone would say it was due to the poor economic environment and market conditions.
The business of opening a store is not good, and people will say that business is getting harder, competition is too fierce, and the economy is poor.
Have you noticed that no one mentions their own reasons? They don’t understand the real estate financial cycle and became victims, and they don’t follow the trends in business, leading to losses.
In contrast, when making money from buying houses, people will believe it is due to their good judgment and abilities; they will never think it is due to market trends or luck.
From this, we can see that people generally like to find reasons externally rather than looking for problems internally.
So many investors, after losing money in the cryptocurrency market, summarize everything as external reasons.
They fundamentally did not find the root cause of the problem, which lies in their own abilities, technology, cognition, mindset, etc.
Always seeking external factors leads to more summaries and greater losses; this is just walking further down the wrong path.
So where are the opportunities for ordinary people?
Although the cryptocurrency market is full of risks, ordinary people are not completely without opportunities! The key is to enhance cognition, choose the right path, and strictly control risks.
The most important thing in this is 'enhancing cognition'!
Success in the cryptocurrency market largely depends on insight into projects and the market; on-chain king 0xSun has lamented several times on Twitter: choice is greater than effort.
The reason is that he is a vivid example; he got involved in the cryptocurrency market during college and persisted.
And years later, while his classmates are still looking for jobs and seeking higher salaries, 0xSun has already achieved some success in the cryptocurrency market.
Ultimately, during the Trump coin period, years of accumulation exploded, achieving a leap in wealth and gaining financial freedom.
And the final result is not achieved overnight, but rather the cognition accumulated over many years of sitting idle on the blockchain, which allowed him to seize a big opportunity and dare to invest large sums in it.
These are decisions that one dares to make only after continuously enhancing their cognition.
An opposite example is myself; I completed my analysis of Trump coin when it was at $3 and participated. But ultimately, under the influence of market sentiment and insufficient cognition, I sold all at $6.
In the end, with this unprecedented narrative, I did not gain substantial returns; I merely doubled my investment.
In retrospect, I regret but it does not help; however, it made me realize the importance of cognition and analytical ability in the cryptocurrency market!
If there is another bull market in the cryptocurrency market, can you seize it?
If there is another bull market in the cryptocurrency market, can we really seize the opportunity?
After careful consideration, I arrived at the answer: it depends on whether you (I) have been preparing.
There are many opportunities in a bull market; the overall market sentiment is high, with quality projects and trash projects thriving.
But only if you and I keep learning, fully understand market cycles, learn to identify quality projects, and adhere to investment strategies without being influenced by emotions.
Only then can one achieve satisfactory results during a bull market.
The breakthrough path for ordinary people.
The cryptocurrency market presents both opportunities and traps for ordinary people, and the key to breaking through is:
Have you been continuously enhancing your cognition, constantly learning! And choosing a path that suits you while doing proper risk control?
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.
If you want to seize this bull market, it's definitely too late to learn and apply it immediately; it’s best if someone can guide you to get started quickly.
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