Many people have reached out to me in recent days, all of them are those who have lost a lot in the cryptocurrency market. Some are even in debt, experiencing broken families. Listening to some of their situations, I couldn't help but sigh, which sparked the idea of writing this article. I hope that after reading this article, it may inspire you for your future survival in the cryptocurrency market.
Those who have lost a lot of money, without exception, all want to get rich quickly and turn the tide. Their strategy is usually to gather enough capital, buy small coins, and then hope that these coins will increase by hundreds or thousands of times.
Their methodologies are very complex, and numerous. I have seen all kinds of them; some use fractal theory, some use technical indicators, some watch the news, some monitor capital flows, and some focus on trends. Their methodologies are filled with a sense of untold secrets. If nothing unexpected happens, with enough people involved, some will certainly become rich.
To sum it up in one sentence, the reason they lose money: the root cause of their losses is a flawed worldview.
Because they do not have a pragmatic mindset and do not respect the fundamental laws of the development of things.
In their eyes, the law of development of things is this: making money should be rapid, it is only this way that one can get rich quickly. Aren't the rich all those who seize opportunities? Life must seize a few opportunities to become rich quickly. Money should be made immediately and in a short period.
The law of development of things, in my view, is as follows: it relies on slow accumulation, reaching a certain amount, suddenly producing a qualitative change, then quickly earning money, and then falling back down to a stable period, or even a loss period.
If you don’t believe it, you can observe closely; any enterprise does it this way, through long-term accumulation, gradually growing, capturing the market, and then their products accumulate to a certain volume, producing qualitative changes, or hitting a trend, then suddenly exploding.
Think about whether BYD is like this, and whether those small mask factories are like this. Also, some large enterprises, the best companies in the world, didn't they all go through this process?
Life is similar; through continuous accumulation, then seizing a certain point, suddenly exploding, and earning big money.
This gives those who do not think deeply the illusion that, look, they just suddenly made money, but they forget how those who made a lot of money did it through accumulation and sedimentation.
I used to do e-commerce, and cultivating a hot product also requires 10-30 days of nurturing, then it explodes, and then returns to calm.
Even love between men and women also relies on accumulation, then exploding at a certain point, and then returning to calm.
Life does not always have peaks.
Those who attempt to get rich quickly, such as trading, buying low and selling high, buying and then buying again, aim to profit from every market fluctuation. They have an illusion that if they seize dozens of such opportunities, they will be financially free. This may only take a year, or even just a few months.
But they are not good friends with the big players; they themselves lack the ability to play the market and do not have sufficient judgment. If they rush in like this, it would be surprising if they weren’t cut. Big players don’t become big players overnight; they also accumulate through several cycles to gain such capabilities. Again, everything relies on accumulation; without it, attempting to succeed is breaking the laws of development of things. That is just pretending to be a god.
If you want to get rich quickly and change your life, I just want to ask, by what right? Do you deserve it? So I always say that the worldview comes first, and the methodology comes later.
A flawed worldview renders methodology useless.
Don't be fooled by those who flaunt their contracts and profits in their friend circles every time they make money. You may have never seen them post about losses; why don't they? Because they are too embarrassed to admit that they have failed, which is a disrespect to reality. It gives the impression that they are always winning, always winning, and have never lost. But how is that possible? In order to gain respect and admiration from others, for that little bit of pitiful dopamine, they start to convince themselves that it's alright to post, as it doesn’t cost them anything, and others won’t know. However, after deceiving others for a long time, they end up deceiving themselves. Eventually, they blend into the crowd.
There are also a group of people in the market doing this, whom I refer to as the 10U War God. They open both short and long positions, posting the returns of whichever one profits. However, they never dare to flaunt absolute returns, only share the return rates. If 10U turns into 100U, that’s a 1000% return, how impressive! But many people lack the ability to think deeply, so they also lose the ability to discern fraudsters. They might even defend the fraudsters because the latter, through a series of suggestions, have become a deity in their eyes. Don’t you think there is a problem with their worldview?
If you use 10U, I believe you can also succeed. But is this success meaningful? Can it change your life? Let me give a simple analogy. If you walk on a flat road two feet wide, you will do it effortlessly. But if you are on a two-foot-wide road 20 meters high, can you walk that easily? Think carefully. To walk across at 20 meters high, wouldn’t you need training, accumulation, and to overcome various obstacles? Some people will never be able to do it because they have a fear of heights. If you can’t do it, then you can’t do it. What’s the relationship? If I want to walk from this building to that building, I just take the stairs, climb down my building, and then walk to the other side and climb up the stairs. It just takes more time and effort. Why must one take such a difficult route, thinking it is a shortcut leading to a dead end?
The so-called shortcut must be a rightful path. A straightforward and transparent route must respect the laws of development of things. For example, accumulating coins, especially mainstream coins during the bear market. Earn more off-exchange and accumulate more mainstream coins. Get the basic earnings from the next bull market, like 10 times, and then explore some exchange activities, participate more, and earn more. For instance, if you only have 100,000 now, then buy in now, and during the bull market, it turns into 1 million, and then arbitrage; that million could become 1.5 million, or even 2 million. Isn’t this path slow? Not fast at all, but it conforms to the laws of development of things. This is the right path and shortcut. The so-called speculation and short-term trading are useless. This is taking shortcuts, and first, you must have the ability to take shortcuts. If not, then it's futile work.
Also, do not disdain a 10x return because you want 100x or 1000x. Everything has a cost; if you want to capture those 100x or 1000x coins, of course, you can.
However, you must meet several conditions. You need to understand some English. Be able to read white papers; don’t tell me about translations. You must understand the designs of blockchain, such as witch attacks, the Byzantine problem, layer two networks, and lightning payments. Also, you need to know the backgrounds of those founders and the investment institutions, as well as their funding amounts in each round.
You need to understand a lot, a lot, in order to slightly increase the probability of choosing a coin. Then you should ask yourself, do you have the confidence and ability to understand these things? Are you willing to put in the effort to earn those hundreds or thousands of times? To research so much information? If you don’t have such thoughts, or if you simply lack this ability, relying on the market and listening to others, relying on your feelings, then why should you earn hundreds or thousands of times? Isn’t this too disrespectful to the laws of development of things? If you could get rich by feelings, then those who are sensitive would all be rich.
Remember one thing: in the financial market, intuition is the most unreliable thing. Human psychology contains a large number of cognitive biases and frame thinking. Relying on feelings can be deadly.
Isn't it the same as I said earlier, that making money relies on accumulation, gradually building capacity and capital, leading to qualitative changes? Then finding opportunities to explode, and then returning to a calm period.
The bull and bear cycles in the cryptocurrency market conform to the laws of development of things. Continuous investment during a bear market is like sowing seeds, and the bull market may only last for about 5% of the time. It suddenly arrives, briefly and swiftly, and then you start reaping the rewards. Many people see you as having suddenly become rich. In fact, you achieved this profit after several years of sowing. But how could they understand your efforts? You succeeded, and they only say you have good vision and luck.
Isn’t it incredible? So for those still losing money, wake up, and quickly return to the real world. Work hard to earn money off the market, then buy and accumulate; that is the only path for you to make money in the bull market.
There are no gods in this world; however, many people's worldviews contain the existence of gods, attempting to find a god to lead them. This is a manifestation of disrespecting facts and the laws of development of things. How can one possibly succeed?
