If you are a new investor, it is recommended to listen to this three times a day to help everyone avoid pitfalls and enjoy the benefits, achieving financial freedom several years in advance!

Current state of the cryptocurrency world

Today's blockchain and digital currencies are reminiscent of the internet in 1997; there may be bubbles, but the potential is immeasurable.

This field will certainly give birth to future BATs; what you need to do now is to integrate into the tide of the era and definitely not fall behind. The best value for people is to live in the future. Make choices based on future standards.

The digital currency field is still in a primitive, wild state, and one's level of cognition will determine their role in this area. You may write an unimaginable wealth legend or, due to insufficient understanding, get cut down by others. Rapidly enhancing your cognitive level is something you must prioritize.

The cryptocurrency market offers much higher returns than the stock market, but also carries greater risks. The chips in the cryptocurrency market are more concentrated, the manipulators are stronger, and trading occurs 24/7 without limits or circuit breakers. You might wake up to find your account has gained hundreds of thousands, or conversely, lost hundreds of thousands. It's not surprising if the coin you just bought gets halved in value in just a few days, so entering this field requires a rational view of the risks involved and an understanding of one's own capacity.

Survival rules in the cryptocurrency space

There's no need to constantly watch the market; short-term trading is unlikely to yield significant profits and may even affect your judgment of long-term value. As long as the value foundation established when building your position remains intact and the environmental conditions have not changed significantly, try to minimize unnecessary actions.

Choosing coins with a large number of believers for investment is relatively safe. Whenever there is an overall decline, they often fall less, as more people hold firmly; such coins have a solid foundation, making it safe to hold.

There are countless stories of people getting rich in the cryptocurrency world, but it's best to just listen; the first thing to do is ensure you survive.

Even in a super bull market, there are still many people losing money. Chasing highs and cutting losses is a shortcut to losing money; this operation should be avoided as much as possible, especially if you adhere to the value investing philosophy of holding long-term. A simple way to make money is to hold onto coins with long-term value; once your position is established, do what you need to do and let time validate your judgment. Do not constantly watch the market; if you have time, observe the industry landscape and changes more. Holding without motion makes it easy to earn money; holding steadily may even lead to big profits! This is the shortcut to making money and a joyful way to engage in cryptocurrency!

The chips in the cryptocurrency space are highly concentrated, and the possibility of manipulation is much higher than in the stock market. Coins controlled by manipulators can suddenly trigger a big market trend; as long as your coin has value, don't panic under any circumstances. Hold onto it tightly; that is your chip, and it becomes difficult to get back on board when the market rises.

It is essential to reasonably control your position; being fully invested or fully out is a tag of new investors. Jumping in recklessly should be treated lightly. Those who constantly go all-in typically suffer severe losses. The short-term fluctuations in the cryptocurrency market are unpredictable; guessing correctly is merely luck. The cryptocurrency space changes too rapidly; do not foolishly think you can time the bottom. Using your position to continually balance costs and seek stable appreciation is the correct approach.

Bubbles contain risks but also opportunities. Learning to surf in the bubble can yield rich rewards. One must both respect the bubble and cherish the enjoyment it brings.

Survival advice in the cryptocurrency space

1 Only invest in assets you can understand

In the blockchain world, the vast majority of people are immature investors who need risk education and behavioral guidelines.

The so-called understanding does not necessarily mean grasping the principles and algorithms of the program but examining the currency you are about to invest in from several other dimensions:

How great is its commercial value?

Taking Bitcoin, which everyone is familiar with, as an example, it effectively solves the security problem of currency transmission and has become an increasingly recognized asset. It also serves as the universal currency and value standard in the digital currency field. Similarly, Ethereum has introduced smart contracts, achieving a complete ecosystem, and many subsequent tokens and applications are established on the Ethereum blockchain.

When we evaluate a new digital currency, we must first consider its commercial value at what level. For applications with infeasible or insufficient commercial value, we should remain sufficiently vigilant.

What is its development stage and risk situation?

Whether a project is worth investing in depends critically on its development stage and risks.

For example, BTC is already very mature and considered a relatively reliable and stable investment target in the blockchain world. Ethereum has also formed a relatively stable ecosystem, with many applications built upon it, so the risk of investing in Ethereum is much lower. Therefore, their current valuations are also quite high.

For example, many people are optimistic about EOS, but the risks are much greater. If EOS is successfully developed, its high concurrency processing capability could surpass ETH and possibly yield excess returns. However, the problem is that the EOS project has yet to materialize, and if for various reasons, such as technical complexity, internal team conflicts, or issues with BM, the project fails, the price will inevitably suffer a significant drop.

High risk, high return; established in traditional finance, still valid in the cryptocurrency space. New cryptocurrencies carry high risks, but if successful, the returns can be astonishing. Different development situations inevitably correspond to different risk levels, which is a factor we must consider when investing in digital currencies.

Look at the resumes and status of team members?

On one hand, pay attention to the team's historical performance; on the other hand, monitor the team's current status, such as information disclosure and development progress reports. If they disclose little information externally, it raises the need for increased vigilance.

2 Understanding 'cycles'

Simply put, do not be superficially misled by 'trends'. The cycles we talk about consist of an upward and a downward movement. Generally, one cycle does not provide enough information for judgment; at least two cycles are needed to see the true trend.

For instance, based on past Bitcoin data, two years is a cycle; Bitcoin's price forms a significant rise and fall cycle every two years. Most other digital currencies also follow Bitcoin's cyclical fluctuations.

In other words, if you want to invest in Bitcoin and truly benefit, you must be able to endure at least two years; four years is better, and ten years is optimal... Most people cannot endure even two years. Some people I know had no Bitcoins left by early 2017 and had completely left this circle without enjoying this market surge.

3 Understand the basic ecological logic of digital currencies

If you want to predict the development of blockchain, you can refer to the development path of the internet:

First, a relatively mature operating system is born, followed by a multitude of applications. Applications and operating systems have a mutually beneficial symbiotic relationship.

Platforms like Ethereum, EOS, NEO, and QTUM can be likened to operating systems in the blockchain field. Who will be the ultimate winner is still unknown, and we are still in the 'under-layer' competition. Creating a bottom-layer application requires enormous resources and high demands on the team. The number and performance of applications are what can measure the project itself. So if a platform claims that the number of applications on its platform has increased, that's a significant positive. If the platform's performance has greatly improved, that's also good news.

For applications, the most important factor is the number of users. Although many applications currently have no users, that is fine; the expectation of having many users is good enough. If an application can attract many users now, it should be able to soar. Currently, the main application scenarios for blockchain are in finance and the internet of things (at least from what we can see, and they are the main ones, not all). Specifically in finance, applications in payments, credit reporting, insurance, equity crowdfunding, accounting systems, trading systems, etc., all have excellent application scenarios. Therefore, applications in these areas are worthy of attention.

Having a general understanding of the basic ecological logic of blockchain will help us choose investment projects and conduct value assessments.

4 Firmly adhere to value investing

Short-term investing in the blockchain world is very dangerous.

First, short-term volatility is severe; there are not many rules in this new area, and there are no limits on rises and falls. The trading fees are also much higher than in the stock market. Trading occurs 24/7 without rest days; if you choose short-term operations, you may either suffer from nervous breakdowns or lose your life.

Secondly, the investors here are more immature than those outside; chasing highs and cutting losses is a common phenomenon, leading to greater market volatility.

Third, the chips in the cryptocurrency market are highly concentrated, and the manipulators have stronger control, making their behavior harder to predict.

Fourth, violating the rule of exchanging time for space, speculative behavior finds it difficult to enjoy the dividends of growth in the blockchain industry.

In the past few years, those who have truly made money in this market are almost all long-term holders who adhere to value investing. Only by holding long-term can one capture wave after wave of market trends.

At this time, understanding the underlying technology itself becomes particularly crucial. Only by truly understanding the blockchain projects that are likely to materialize in the future can one have the courage and determination to hold long-term. This is the opportunity to achieve hundredfold or thousandfold returns and achieve financial freedom.

How to understand? Learn madly. On one hand, learn the underlying logic and knowledge of blockchain. On the other hand, study the design, application prospects, and team progress of various blockchain projects.

Blockchain is a field where money is made through cognitive levels; the essence lies in the enhancement of one's own understanding of the blockchain field.

5 Be skilled at surfing in the bubble

When it comes to asset bubbles, many might think of housing prices. It’s undeniable that whether or not to participate in real estate speculation may have determined the class status of many people. Look at those who have seen their assets grow several times due to real estate speculation; what exactly did they do right? It was cognition plus courage that allowed them to join this bubble and benefit.

In 2013, when Bitcoin was priced at over $100, I suggested to a few friends around me to invest a little spare money in Bitcoin, telling them to treat it as if they didn't own it and check back a few years later. Some found it incomprehensible and ignored it. Some, after a surge at the end of 2013, happily cashed out. One friend, however, bought a significant amount and still holds most of it today; she is now financially free and her entire family has immigrated to the United States. When I visited Los Angeles last year, she treated me to dinner and kept thanking me for my advice back then. What she did right was a combination of 'cognition' and 'courage' that led her to make the right choice.

And today, blockchain may be a larger bubble, or maybe not. But the cryptocurrency lady is certain that this is an unprecedented speculative frenzy and an unparalleled opportunity.

Therefore, we should not be overly fearful of bubbles; instead, we should adjust our mindset, rationally view the risks and opportunities within, and learn to surf within the bubble with wisdom and the right approach!

Within the range of what one can bear, taking a bold gamble in a bubble may yield unexpected surprises.

If you do not know how to filter strong coins, I suggest you follow me. Whether in spot trading or derivatives, any slight move could be your limit; opportunities are short, so you must seize them! Success does not rely on luck; choices are more important than effort. The circle determines fate; in the cryptocurrency space, having sharp insight and being part of a good team and a good leader are essential. By following me, you have already succeeded halfway in the cryptocurrency space.
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