One, Reshape Income Perception: Break the Underlying Logic of Getting Rich Quickly
- Say goodbye to short-term speculative thinking: in the crypto market, a 200% increase in one day coexists with a 50% drop; don't be blinded by the 'hundredfold coin myth.' Any hype that claims 'get rich quick' is essentially an emotional trap for retail investors.
- Establish a long-term value coordinate system: break out of the emotional cage of daily candlesticks, focusing on the feasibility of project technology (such as improvements in public chain TPS, actual locked amounts in DeFi protocols) and ecosystem health. Truly quality targets often exhibit growth momentum over a 3-5 year cycle.
Two, Rules for Dealing with Volatility: Find a Balance Between Greed and Fear
- Anti-human nature emotional management: a 30% daily rise and fall in small coins is normal; when the market collectively shouts 'the bull is here,' beware of the main force offloading by taking advantage of the hype; when the community is full of 'zeroing out theory,' instead, look for value targets that have been misjudged.
- Cut off the FOMO neural chain: stay away from 'ranking coin speculation' and 'Twitter calls'; the surge of popular altcoins (like MEME coins, air projects) is essentially a game of fooling each other. Only participate in tracks where you can deconstruct the token model and understand the technical white paper (like mainstream assets such as BTC, ETH, or eco-coins from compliant platforms).
- Reduce monitoring waste: frequently watching the market can trigger 'loss aversion' psychology, even causing buying high and selling low due to minute fluctuations. Instead of getting stuck in candlestick charts, research industry reports and track the technical update progress of projects.
Three, Practical Iron Rules: Build an Anti-Fragile System with Rules
- Cash Flow Safety Margin:
▶ Firmly reject the entry of 'leverage + mortgage + emergency funds', set a 'disposable investment' red line (suggested not to exceed 5% of family assets);
▶ Use the 'pyramid building method': every time the price drops by 10%, increase your position according to a preset ratio to avoid being fully invested at once and becoming passive.
- Give up the obsession with timing:
▶ Acknowledge the fact that 'predicting tops and bottoms is impossible'; 90% of retail investors end up contributing to exchange fees through short-term trading;
▶ After being trapped, first conduct a fundamental diagnosis: if the project's white paper progress remains unchanged, you can dilute your costs through regular investment, rather than emotional panic selling (typical case: during the ETH crash in 2022, regular investors broke even during the rebound in 2023).
- Avoid switching warehouse traps:
▶ The rhythm of rotation in the crypto circle is extremely fast; blindly switching from BTC to hot altcoins is likely to fall into the dead cycle of 'selling mainstream + being trapped in altcoins';
▶ Adhere to the 'circle of competence principle': for unfamiliar new tracks (such as suddenly popular NFT sectors), observe for 3 months before making a decision, rather than following the trend.
Four, Bear Market Cultivation Manual: Forge Investment Resilience in Winter
- Embrace the selection value of bear markets: history proves that true industry disruptors (like Uniswap in the 2018 bear market, and Arbitrum in 2022) are born in market troughs. The bear market is a window period to collect quality chips at a 'floor price,' not a time for panic selling.
- Accept the norm of occasional losses: even BTC has gone through cycles of dropping 80% in 2013 and 70% in 2018. View volatility with a 'venture capital' mindset—invest in 10 projects, expect 5 to go to zero, 3 to break even, and 2 to double; this is already a successful probability model.
Ultimate Mindset: The Essence of Investment in the Crypto Circle is 'Anti-Human Nature Training.' When you can calmly analyze a project's white paper during a market crash, and adhere to position discipline during community euphoria, you can navigate through bull and bear cycles. Remember: it’s not the market that is harvesting you, but your own 'greed and fear' that is harvesting itself—first learn to 'not be governed by emotions,' and then talk about 'making assets appreciate.'
