Why is it harder for the poor to make money in the cryptocurrency market?
This question, to put it harshly, is a reality— the cryptocurrency market is a chain of wealth circulation:
Poor → Rich → Institutions,
Shrimp → Small Fish → Big Fish → Crocodile.
Although the cryptocurrency market is freer and more market-oriented than the A-share market, those who truly make big money are often not those with small funds and low understanding.
In simple terms, there are two reasons:
1. Without money, one can't withstand volatility
Cryptocurrency can drop by 90% at any moment, and while hundred-fold coins do exist, you must be able to endure the fear of a ten-fold drop first. Many people, holding onto hard-earned money, panic and sell at a loss when faced with a drop, resulting in good coins not being able to rise.
2. Information gap + cognitive gap
You might be working a job that leaves you unable to keep an eye on the market in real-time, let alone understand on-chain operations, DEX ecosystems, or where the trending coins are. Meanwhile, institutions and large players have money and resources, allowing them to set up ahead of time and take the first bite of profit.
To survive in the cryptocurrency market, the poor can only rely on one word: stability.
Do not invest in what you do not understand, dollar-cost average into mainstream coins, control risks, and avoid chasing highs or going all in. Dreaming of getting rich quickly is fine, but if you want to earn in the long term, first learn to survive longer.
