In the cryptocurrency world, assets flow from the wallets of the poor to the wallets of the rich, and from the wallets of the rich to the wallets of Wall Street institutions. The crocodile eats the big fish, the big fish eats the small fish, and the small fish eats the shrimp. This is the ecological chain of the cryptocurrency world. From the overall probability of making money, the chances for retail investors to profit in the cryptocurrency market are much greater than in the A-share market and even more than in the lottery. The gameplay in the cryptocurrency world seems fairer, more reasonable, and more market-oriented.
It is difficult for the poor to make money in the cryptocurrency market based on the following points.
1. Capital scale and risk resistance ability
Limited funds mean that the poor have less money available for investment, making it difficult to withstand significant losses. The cryptocurrency market is highly volatile; once the market drops, limited funds can easily become deeply trapped or liquidated. In the cryptocurrency world, a 90% drop in altcoins is normal, and of course, hundreds of times returns are constantly emerging. Most poor people cannot tolerate a tenfold drop, and thus cannot seize the opportunity for a hundredfold increase.
Weak risk resistance ability; insufficient funds mean that effective risk management strategies, such as diversification or staggered investment, cannot be adopted. For example, the Martingale strategy requires a large capital pool to cope with consecutive losses; otherwise, one may be forced to exit due to insufficient funds. Value coins like Bitcoin and Ethereum, when investing weekly at the bottom area, are the most reliable investment methods in the cryptocurrency world.
2. Market information and cognitive gap
Information asymmetry; the cryptocurrency market has complex and rapidly changing information, and the poor often lack channels to obtain and analyze professional information. In contrast, well-capitalized investors can more easily access insider information or professional analysis.
Insufficient understanding; the cryptocurrency world involves complex financial knowledge and technical background. The poor may lack relevant education and experience, making them prone to blindly following trends or being misled, ultimately becoming 'chives'.
For example, Trump Coin tweeted on January 18, 2025, at 10:13, when the price was only $0.18. By the evening of the 19th at 17:00, it had already reached $95. The poor are usually busy making a living and do not have much time to pay attention to Twitter, lack smooth information channels, and do not have time to master decentralized trading platforms and specialized tools like blockchain wallets. Their reaction is slow; when the cryptocurrency market moves, it happens in just two days, and if they miss it, they lose the opportunity forever.
I have navigated the market for many years and understand the opportunities and traps within it. If your investment does not go well and you feel reluctant about the losses, leave a 999 in the comments! I will share my insights.
