What is the logic of making money in the cryptocurrency world?

My experience is that to make money in the cryptocurrency world, there are several points:

1. Cognitive Gap: If your cognitive dimension is high, you can make money. For example, when someone is trading Doge at lunch, is it because they draw lines better than the talking head? No. It's because their cognitive dimension is high, and their understanding of investment is several levels higher than most people. You can see that their prediction of Doge a few months ago was the main driving force behind this round of Doge's rise. Or take Tony the fatty, whose understanding of trading is several levels higher than others, so he can make big money through trading.

2. Information Gap: This mainly manifests in high-odds plays that emerge early in some new narratives, such as mining, selling, and grabbing incentives. If you get involved earlier than others, you can earn good returns. As for how to have an information gap, it’s a longer story—this has been touched upon in scattered posts on Weibo in the past, and those who are determined can find it.

3. Execution Gap: You either work hard or have skills. When there is no cognitive gap or information gap, the execution gap is what widens the income difference between ordinary people. If you work hard or have skills, you can also make money.

These three are fundamental, and they can also be combined in various ways—cognitive gap combined with execution gap, information gap combined with execution gap, etc. This model also determines that their trading behavior yields high returns, low risks, and strong sustainability. This is also the most stable money-making model I have seen in the cryptocurrency world over the past few years.

If you have none of these three, and you fantasize about making money by just placing one order or drawing dozens of lines to make the candlestick chart look like a watercolor painting, you might as well get a job delivering takeout. For the vast majority of ordinary people, apart from the luck of a chosen one, there are basically only a few ways to achieve a small capital return of 5 to 10 times in the short term by relying on the market:

On-chain chasing hotspots: When the market is good, there are many high-odds opportunities on-chain, suitable for small funds to double in the short term, at least more reliable than secondary gambling on long and short. However, it also requires high capability; you need to grasp hotspots in a timely manner, master quality and timely information sources, understand project gameplay, etc.