In the crypto space, those who say it's hard to make money are mostly ordinary people, which is mainly due to the following reasons:
Insufficient market awareness: Although the entry barrier to the crypto space is low, it is a highly specialized market. Many ordinary people underestimate the market's complexity and technical requirements, leading them to blindly enter without sufficient preparation, and soon they suffer losses. Many may just have heard that money can be made in the crypto space and try to enter without truly understanding the market's operational rules and investment risks.
Lack of in-depth study and preparation: Ordinary people often do not undergo systematic learning and training, jumping directly into trading. This includes a lack of understanding of basic financial knowledge, market trend analysis, technical chart interpretation, etc., all of which are essential knowledge and skills for successful individuals in the crypto space.
Insufficient psychological resilience and risk control awareness: The crypto market is highly volatile, and ordinary people often find it hard to bear the psychological pressure brought by this volatility, also lacking effective risk control strategies, leading to rapid losses when the market declines.
The influence of external factors: Ordinary people in the crypto space are often more impacted by external factors, such as social background, educational resources, etc. These factors limit their potential for development in the investment field.
Intense market competition: Although the entry barrier to the crypto space is low, competition is extremely fierce. Ordinary people find it difficult to establish themselves in the market without unique resources, strong execution, and continuous learning capabilities.
Author: Cong Bit
Link: https://www.zhihu.com/question/650576054/answer/1896331955840201847
Source: Zhihu
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The truth about the crypto space: Why do you always lose money? Blood advice from experienced investors.
Recently, a friend came to me complaining that he bought a token for a 'celebrity project' on a certain exchange, and as soon as he bought in, it was cut in half, and now he's stuck. I asked him: 'Do you know who the core team of this project is? What ecosystems are there? How many real users are there?' He couldn’t answer any of the three questions, purely jumped in after seeing others boast.
This is too typical—most people lose money not because the market is bad, but because the information gap is too large.
1. The winners in the crypto space have never relied on luck.
Do you think those who get rich are relying on 'holding spot' or 'high leverage contracts'? Wrong. The only people who truly make money are three types:
✅ Tech-savvy: For example, programmers can discover flaws in a project in advance or participate in testnet mining, cashing out directly when the tokens go live. A guy I know made $500,000 with zero cost last year by testing nodes for a new chain.
✅ Resource holders: Those who have traffic, communities, and can help project parties do marketing. Do you know how much some 'whale callers' charge to promote a coin? Starting from $50,000, and they get the tokens at a much lower cost than you.
✅ Information holders: Those who can obtain insider information in advance. For example, if a certain exchange is about to list a new coin, insiders have already gathered enough chips at a low price off the market, just waiting for it to launch and take profits from retail investors.
2. Why are ordinary people always being harvested?
🔻 Trap 1: What you think is "good news" is actually "bad news".
When a certain coin suddenly skyrockets, and the community and media go wild promoting it, you get tempted and dive in. What’s the result? The market maker has long placed sell orders at high positions, just waiting for you to crash in.
🔻 Trap 2: Contracts are just casinos, 99% of people will lose.
"Open 100x leverage, one shot to financial freedom!" — Such stories are just for listening. I've seen too many people blow up in one night, losing even their principal. Exchanges love gamblers because they can earn fees no matter if the market goes up or down.
🔻 Trap 3: Small coins = high-risk lottery
If a certain animal coin or celebrity coin skyrockets 100 times, do you think "the next one could be the one I bought"? Wake up, these coins have extremely poor liquidity, and after the market maker pumps it, you won't be able to sell even if you want to, and in the end, you'll just watch it go to zero.
3. How should ordinary people play?
☒ Don't touch contracts! Don't touch small coins! Use spare cash to buy some BTC or ETH, hold them long-term, it's better than blindly messing around.
☑ Learn to view on-chain data (like large wallet movements, funds entering and leaving exchanges), it's more reliable than looking at K-lines.
☒ Don't believe in 'teachers leading trades'; if there really was a way to make money, why would they tell you?
☑ Enhance understanding, rather than relying on luck; this market is always about those with higher awareness earning money from those with lower awareness.
The last honest truth.
If you neither understand technology nor have insider information, and still want to get rich by trading coins—it's no different from going to a casino in Macau. The few who make money in the crypto space are always in the minority; most people are just fuel. Invest rationally, and don't let yourself become the 'protagonist of the story' being harvested.
The only track where ordinary people can truly make money in the crypto space.
Ways to make money in the crypto space are only a few: spot trading, contract leverage, and primary level, but have you noticed that after trading for a few years, you either just make a little profit or remain lukewarm? Not losing money is already a blessing. As for contracts, it's not something the average person can play with; the primary level is also in a very high-risk state, and fund pools are rampant, with low-quality projects dominating.
So what are the real tracks where one can make money in the crypto space? We must always remember one thing: in any industry, only a small portion of people make big money, and certainly, these people belong to the top of the food chain, such as those running exchanges, market makers, and platform projects. But do ordinary people really have opportunities in the crypto space? Or are we always in the state of being retail investors?
To put it bluntly, in the crypto space, you have more than an 80% chance of being a 'retail investor', and that's not an exaggeration. Retail investors cannot compete with capital, so do you think there are opportunities here? I often ask my friends in the crypto space, if Bitcoin comes back again, will you seize the opportunity? The answer is not necessarily. It's not the coin's fault; it's mostly a personal issue. Therefore, inner cultivation, improving understanding, and connecting with industry professionals is particularly important, being able to understand the essence of projects and future trends, or having very strong business insight.
What I want to say is that the only track for ordinary people is at the primary level, but how do you judge the primary level? Or how do you judge quality? 90% of people cannot make that judgment, so you might as well take a gamble, hence many people wander in the world of fund pools over time, and they even think fund pools are part of the crypto space.
Some ignorant people, of course, you can't say they are ignorant; after all, they know little and understand less, but they don’t even know the basic common sense, how can they earn money through investment? It's crucial to identify the primary tracks, for instance, do you understand what true decentralization is, whether tokens are open source, trading pools, cross-chain, market capitalization, etc., rather than just asking, 'who is behind this?' It's like asking me who Satoshi Nakamoto is; I genuinely don’t know. Therefore, how you judge and view a public chain or a token, and how you ask questions from a professional knowledge standpoint is very important.
Of course, in a project, information is important, and project planning is important. For example, the FVM project has its own plan. If you ask me how FVM is doing, I can only tell you it's the token of the FIL official virtual machine. If you say you don't believe it, then that's all I can do. After all, the price of a coin is determined by whether people believe it or not, ultimately forming bullish and bearish K-lines.
In the primary level, if you really want to make big money in the crypto space, you still need to patiently understand a project, continuously absorb the essence, and master the entire rules, rather than just wandering through each project. I can 100% assure you that you will not make any money; if you don't believe me, you can ask people around you like that. Of course, a very small number of people might earn due to luck, but it won't last long.
If you want to seize this bull market, it’s definitely too late to learn on the spot; it’s best if someone can quickly guide you in.
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