In the fog of wealth-building legends in the crypto circle, the core reason why 90% of investors return defeated lies in the dual pitfalls of human weaknesses and trading logic:
One, Four Fatal Wounds: How ordinary investors step by step head towards losses
1. High-Frequency Trading: A vicious cycle of 'working for the market' through fees
- Cost Erosion of Profits: More than ten trades in a single day can accumulate enough fees to swallow all profits, ultimately resulting in 'wasted efforts';
- Emotion-Driven Operation: FOMO (fear of missing out) leads to chasing highs during rises, panic selling during declines, becoming a puppet of market emotions;
- Short-term Traps: The crypto circle is not a casino of random gambling, but a battlefield dominated by capital; high-frequency trading will only expose weaknesses and become the prey of market makers.
2. Leverage Speculation: The 'liquidation accelerator' that amplifies risk
- Double-Edged Sword Essence: Under 20x leverage, a 5% market fluctuation can lead to liquidation, behind the illusion of amplified profits is the exponential growth of risk;
- Retail Investor Thinking Pitfall: Fantasizing about 'small bets to win big', but ignoring that institutions rarely use high leverage — true winners rely on long-term layouts, not gambler-style betting.
3. Chasing Up and Selling Down: Precise harvesting of human weaknesses
- High Point Takeover Law: When the market surges, following the trend to enter the market becomes the 'buying hero' for the market makers to offload their holdings;
- Panic Selling Vicious Cycle: Selling during declines, regretting during rebounds, repeatedly staging the 'buy high sell low' cycle — the crypto circle understands human nature deeply and specializes in treating noncompliance.
4. All-In Gambling Nature: Turning investment into 'all-in suicide'
- Faith Misconception: Blindly believing in the 'guaranteed victory' of a single project, while ignoring the reality that even Bitcoin bull markets can have 90% pullbacks, and there are no buyers left for altcoins after a surge;
- Survivor Bias: 99% of people cannot withstand extreme volatility, 'going all in' essentially exchanges all principal for one slim chance of a turnaround.
Two, Winner Logic: How institutions use systematic strategies to navigate cycles
1. Capital Management: The art of position prioritizing survival
- Diversification Principle: Refuse to hold a single cryptocurrency heavily, use strategies like the '1+3 model' and 'tracking institutional models' to follow professional capital layouts;
- Dynamic Position Building: Pyramid scaling (1:3:6 ratio) to control costs, ensuring that single losses do not affect overall returns, achieving the primary goal of 'survival'.
2. Emotion Control: Anti-human discipline execution
- Reduce Monitoring: Avoid being stimulated by short-term fluctuations, use preset strategies (take profit/stop loss) instead of temporary decisions;
- Anti-FOMO Rule: Stay calm amid market noise, avoid being swept up by the anxiety of 'missing out on wealth', and only act according to the established plan.
3. Data-Driven: Replace intuition with rational decision-making chains
- Multi-dimensional Analysis: Combine technical aspects (trends, indicators) with fundamentals (project value, market sentiment) to build a solid trading logic;
- Long Cycle Thinking: Capture trend opportunities with 'long holding and short trading', filter out short-term noise, and avoid falling into zero-sum game slaughter fields.
Three, To Investors: The essence of making money is 'anti-instinct' practice
- Core Cognition: Trading is not about who makes more in the short term, but about who lasts longer — the market is never short of opportunities, but lacks capital to stay at the table;
- Anti-Common Sense Operation: Abandon the fantasy of 'getting rich overnight', use institutional-level discipline (position management + strategy execution) to combat human weaknesses;
- Ultimate Truth: The harvesting logic in the crypto circle has never changed — when you are obsessed with high-frequency trading and leveraged gambling, you are already standing on the side with greater losses.
Awake investors understand: those who survive the storm are never the most agile dancers, but those who build their Noah's Ark in advance.#山寨币ETF展望 $BTC $ETH
