Many people disdainfully say that those who have experienced several cycles and made big money in the cryptocurrency space are gamblers, just lucky. Let me state a truth: don’t be jealous; those who can obtain and retain great wealth in the cryptocurrency space are not lucky, don’t be unconvinced.
I won’t mention how many pitfalls existed in ancient times; those were definitely much more thrilling than now. Just speaking of the present, those who have made big money and held onto it must have perfectly avoided all the following matters regarding their large positions:
1. Open contracts.
2. Bought a large amount of non-Bitcoin.
3. Put all coins on exchanges.
4. High-frequency trading, attempting to buy high and sell low.
Don’t underestimate these four things. If you don’t pay close attention to the cryptocurrency space, you won’t understand. Those who can make big money in the cryptocurrency space must have paid deep attention to it and have previously traded continuously—these people can adhere to the above four principles after making big money, which means they must have suffered great losses in these matters. After completing their cognitive training, they can still accumulate large funds in the cryptocurrency space without resorting to the above gambling methods. Do you think this is luck?
Most people in the cryptocurrency space have only 'made money in the past' because their ways of making money are just the few mentioned above, and naturally, they also lose because of those ways. When a person realizes that the above methods cannot lead to true wealth, but cannot find other ways to get rich in cryptocurrency, that’s where the problem lies.
Let me tell you, those who have truly made money in the cryptocurrency space and managed to retain it long-term, besides avoiding the pitfalls mentioned above, must also meet at least one of the following conditions:
1. There is a flagship product in the cryptocurrency space.
No matter how much you understand, you will step into the above-mentioned pitfalls and lose coins. But the key is, you have a product that continuously makes money in the cryptocurrency space. The function of this product is that no matter how many pitfalls you step into, since it earns coins, you will always recover those lost coins. As you gradually become smarter and stop stepping into those pitfalls, your coins will continue to increase—representative figures like CZ and Sun Ge, they have all stepped into these novice pitfalls, but the key is that there are products helping them continually earn back coins, while you do not have that, and that is crucial.
2. Have the ability for continuous dollar-cost averaging.
If you do not have the ability to create products, then the easiest thing for you to match is this. Don’t say 'Bitcoin won’t rise much anymore', that’s not a reason for you to gamble with a large position—when has Bitcoin ever run fast? In the past, Bitcoin was low, but that was compared to now. Back then, Bitcoin and altcoins both rose slower, and where are those altcoins now? Give yourself 10 years, gradually invest the money you earn in the next 10 years, and let the money you earn in these 10 years multiply by 5 or 10; this is the best way for ordinary people to open the cryptocurrency space.
The premise here is to have a good locking mechanism for assets, where you can only enter but not exit; a good dollar-cost averaging environment, where it’s not that you invest just because you have money today or don’t invest when you don’t; you shouldn’t heavily invest just because you think it’s low today, and you shouldn’t refrain from investing simply because you think it’s too high; there must also be an excellent ability to invest from outside the market—your earning capacity will enhance the effectiveness of the above rules.
The above prerequisites are indispensable. A person who can have a transformative ability outside the market and be humble and obedient inside the market—this is already a remarkable person, and that money is what you deserve.
3. Coins have been locked up.
I participated in an old fund where the coins were locked for 5 years. During that time, the cryptocurrency space experienced too many ups and downs, but this money was locked up, and I couldn’t move it. Have there been times in reality when I needed money? Of course. During this time, I also bought a house. When my investment returns hadn’t come back and I needed to invest in other projects, I briefly turned to the bank. Eventually, the coins in my hand dwindled amidst the ups and downs of investing and starting a business, but when this fund distributed profits, I found that the shares added up to hundreds of bitcoins—although the fund didn’t outperform directly using the money to hoard coins, the problem is it indeed couldn’t be hoarded. The percentage of loss in coin quantity from this fund is already far smaller than the portion I held myself.
Such things are common in the cryptocurrency space; a loser bought some coins and went to jail for assault, and after getting out, he had over a hundred million—this is not a story, it's reality. If he hadn’t gone to jail, he would have already squandered those coins.
Since then, I have actively locked my largest share of Bitcoin and kept it locked until now. If you believe in Bitcoin, now is the time to convert everything you have into Bitcoin, actively lock it for 10 years, and then start from scratch. After 10 years, the result may very well exceed everything you do that seems more useful in these 10 years.
I’ll say it again; I’ve never seen any big shots become big shots by trading coins, not a single one—trading coins doesn’t make you a big shot, leverage doesn’t make you a big shot, and there’s no luck in the cryptocurrency space. Your understanding must be in place first; then it may become your best wealth tool, otherwise, you will end up becoming its slave.
Last month, there was a comment under an article saying that when Ethereum was at 3600, he gambled on the upgrades in March and April, so he sold his house and all in with a 2x leveraged long position. I asked him why he still opened leverage despite being warned not to. He said he was optimistic about the future market and felt that 2x wouldn’t blow up; could Ethereum really drop by half again?
Yes. I am also optimistic about the future market, but I respect the market. I will never use leverage here, not because I am cautious, but because I understand something that he does not.
Follow the orange east closely, use precise strategic analysis, and select with huge investments of millions in AI big data to secure an undefeated position? The market has never lacked opportunities; the question is whether you can seize them. By following experienced and the right people, we can earn more!
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