Who earns and who loses in the crypto market?
The following is a brief analysis of the profit and loss situation for four types of participants in the crypto market:
1. Trading Coins
Profit: Long-term holding of mainstream coins (such as BTC, ETH), selling in a bull market, stable returns. Example: BTC rises from 16,000 in January 2022 to 70,000-100,000 in 2025, multiple returns.
Loss: Buying at high points, unable to withstand volatility and cutting losses. Long cycles, high opportunity costs.
Who earns: Long-term investors with a stable mindset.
Who loses: Retail investors chasing highs.
2. Contracts
Profit: High leverage can lead to short-term windfall profits, a few technical players earn through risk control.
Loss: Most due to high leverage liquidation, capital goes to zero.
Who earns: Technical players, exchanges (transaction fees).
Who loses: Aggressive retail investors.
3. Miners
Profit: Mainstream project miners earn cyclical profits, high returns in a bull market. Early BTC miners made large profits, current returns are stable.
Loss: Plummeting coin prices lead to "mining disasters," extending the recovery period.
Who earns: Large mining farms, sellers in a bull market.
Who loses: Small miners, high-cost entrants.
4. Promoting Projects
Profit: Early promoters earn high commissions (40%-60%).
Loss: Projects lack self-sustaining capability, late entrants lose all after a collapse.
Who earns: Project parties, early promoters.
Who loses: Late retail investors.