Essentials | 30 Investment Lessons in the Cryptocurrency World: Making Money Depends on Luck, Keeping Money Depends on Principles (Part 1)

In the high volatility and high-risk world of cryptocurrency, no one can win forever, but there is a group of people who are less likely to lose. They often rely not on 'talent,' but on their own set of principles and cognitive frameworks.

The following 30 lessons have been summarized by those who have navigated the cryptocurrency world, and are worth repeated reading and deep reflection by every participant:

1. Profit is not your capital. Please exchange the money earned for BTC, ETH, or fiat currency first; don't continue to go ALL IN on higher-risk projects, as it can easily lead to a complete loss.

2. Projects carrying 'cult' culture tend to surge easily, but you must know when to exit before the peak. The emotional peak is the starting point of risk.

3. Locking up funds for returns = rushing to the deck while the ship sinks. Unless it's a bull market peak, try to avoid this as much as possible.

4. Time is your most valuable asset; don't waste your attention on meaningless trending topics and arguments.

5. Every extra profit comes with extra risk, especially those 'staking-returns-reinvestment' cycles; once it breaks, it can lead to total loss.

6. Maintain independent thinking regarding information; don’t blindly trust influencers or chase hot threads. First, think clearly: why are they telling me this information?

7. When new narratives and protocols emerge, prioritize attention on leading projects. No one remembers who the second player in the industry is.

8. Using too many tools becomes a burden; Etherscan, Debank, and DefiLlama are sufficient to handle 90% of research needs.

9. The on-chain food chain is cruel and real: Builder > VC > Whales > Bots > Manual Traders > 'Only find out by reading the news.' Entering after reading the news is mostly about picking up the leftovers.

10. True Alpha comes from two types of people: one is internal sources of information, and the other is researchers willing to dive into whitepapers and read forums.

11. All new project strategies are not actually new; they are just old stories repackaged. The compounding factor is experience.

12. Every moment you feel strong FOMO is a reminder for you to stay calm.

13. The most effective way to protect your capital is 'stop-loss.' Being stuck is not as good as stopping the loss; the mindset of breaking even will only lead you deeper into a hole.

14. Record your trades and thoughts daily; develop the habit of reviewing them. This is the starting point of your psychological evolution.

15. During a bull market, fundamentals are not that important. Emotions, narratives, and hype are the main drivers of price increases.