The cryptocurrency market has a difficult-to-detect investment trap
There are always people who make a fortune in one sector and then jump into a completely different sector with the same large position
Even increasing their position/leverage significantly—resulting in a total loss; this usually happens in a bull market.
For example: many people may have quickly earned their first pot of gold by struggling in the front lines (such as chain oil, grabbing rewards, DeFi)
And then they charge into the MEME market with the same amount of capital, completely ignoring that it is a game with different rules, risks, and required skills.
At the same time, people seriously underestimate the role of luck in a bull market.
If you can make a lot of money in a short time, it’s not always because your skills are exceptional. There is often a significant element of luck and randomness involved.
Looking at it over a longer period, can these lucky people really achieve stable profits? The shorter the time frame, the more randomness and interference factors there are.
Countless people can go from zero to a million fortune, and then back to square one overnight. The most intuitive example is that if you have paid attention to the trading leaderboard of exchanges, you will find that over 90% of traders do not last until the next cycle.
Cryptocurrency is a market where narratives iterate very quickly, which means you may face new tracks or new ways of playing at any time. No matter how much you earned before, you should remain humble and try to participate in new tracks and ways of playing with a conservative attitude.
For example, only allocate 1-5% of your funds to the AI Agent gold rush, then spend time slowly learning and sorting out investment logic. If you start by putting in more than 70% of your funds, you will experience a 99.9% drop just a few days after the market ends.
