Bitcoin has broken through $111,000, and Bitcoin's market share has started to turn downwards, while other altcoins have visibly started to rise today.
You must be feeling an urge to put some money in, hoping to make a profit in this bull market. Right now, you probably feel a bit regretful, wondering why you didn't buy in the first half of the month; if you had, you might have already doubled your money.
If the market conditions are good later, you might make a lot of money with random purchases. However, even if the market improves, it won't rise as comprehensively as in the previous bull market; the high zones of altcoins are already littered with bones.
Because this time, those buying Bitcoin are institutions. After making profits, institutions are not selling to invest in altcoins like before; instead, they are not selling at all, directly withdrawing the coins to custodial services. This will inevitably reduce the funds flowing into altcoins, and even if altcoins rise, it won’t be a general increase. The only ones that can rise are a few mainstream ones, and tripling to quintuple is about the limit; don't fantasize about tenfold or hundredfold gains.
That is to say, from today until the end of the bull market, if you can make three times your investment, you're an impressive retail investor. My consistent approach is: it's okay to earn less, but don't lose money. Losing a bit here and there will result in your funds diminishing, making it very difficult to accumulate wealth. If you earn three times this time, and you happen to catch another opportunity next time, starting with $100,000, you could basically reach a million.
But you must avoid the characteristics of the following retail investor behaviors. Even though you made money in the crypto space, you could still be a retail investor:
First: Not willing to sell after making a profit. For example, if you have $100,000 principal and it grows to $300,000, then drops to $250,000, you still fantasize about it returning to $300,000. When it really does reach $300,000, you think about making another $100,000. Having this mindset is undoubtedly a sign of being a retail investor, and you will eventually lose everything. My method is: I expect to earn a certain amount, and if it doesn’t meet expectations and starts to decline, I take my remaining profits and walk away, waiting for the next opportunity.
Second: The final climax of the bull market is extremely crazy, and some coins might experience a tenfold increase in one day, but you will only hear stories of others getting rich. If you made money earlier and your confidence swells, you might want to earn even more by putting all your principal + profits into it, and in the end, you might encounter the start of a bear market. This belongs to wanting to take one last big gamble to turn things around. If you're going to play, use only 10% of your assets; if you really hit it big, that's just good luck, and the assets you earned will roughly double.
Third: If you've made money but don't cash out, and you just convert all your USDT into BTC, secretly vow to hold for 10 years without touching it, but you haven't locked your coins. This will test your patience immensely. I suggest that you start dollar-cost averaging into BTC when the market returns to a cold despair, or it’s fine to start dollar-cost averaging directly, but don’t think you can just go all-in on BTC just because it's good. BTC is great, but it only belongs to those who can withstand a bear market. First, have the patience to endure the bear market before talking about holding for 10 years. This already belongs to advanced retail investor awareness.
Fourth: During a downturn, thinking about shorting to make a big profit. This is suitable for experts; beginners should stay far away from contracts. As long as you've made money on contracts once, when opportunities to make money are scarce, you will think about going back to try your luck, and your understanding of contracts will become intermittently disrupted, always thinking you are the exception who can make money.
Fifth: In excitement, you forget yourself, start speaking louder to people around you, become impatient with those nearby, stop smoking the $20 cigarettes, begin to disdain the $150,000 car, start buying whatever you like, become infatuated with beautiful women, and start tipping beautiful livestreamers, etc. Once you have this kind of prideful attitude, it's a precursor to decline.
Sixth: Stop learning about the crypto space and no longer pay attention, which will lead to losing your touch. Making money in crypto is a skill; you need to be proficient in your techniques, and you must constantly pay attention to information. Don’t listen to people saying things like 'the more you know, the more you lose'; losing a lot is definitely due to not understanding and making random operations that result in losses.
Seventh: Don't think about financial management, hoping to earn that little bit of interest on-chain, as it may result in your pool being attacked. A few days ago, an SUI ecosystem pool was attacked, resulting in someone losing $2 million. It’s best to convert your USDT into cash; if you don’t convert it, it's best to keep your USDT in a cold wallet. By the way, it’s best to use the ERC20 chain, because I know several people who used the Tron chain and got hit by multi-signature issues, and they don’t even know which step went wrong. If you search online, there are plenty of such cases.
Eighth: Suppose you are particularly lucky in this bull market and made tens of millions; that would definitely be due to luck. Remember the previous seven points, and at the same time, be wary of being called to invest by others, and don’t be deceived by those who provide extreme emotional value. Yesterday someone asked to borrow money from me, and today another person asked me to invest in something, claiming a financial big shot from Shanghai is here. I directly said I'm not interested, and then they sent me a beautiful tea artist asking me to come for tea. I said she looked nice, but I need to study and read, so I don’t have time.
