The existing investment forms in the cryptocurrency space: spot, contract leverage, and primary market seem to be filled with opportunities, but once you dive in, you find high risks and difficult returns.
In this situation, do ordinary people really have a chance to break through in the cryptocurrency space? How to find truly profitable tracks?
The current state of the cryptocurrency space.
The current cryptocurrency space is a highly speculative market with information asymmetry; price fluctuations are severe, project quality varies, and the regulatory environment is lacking.
These characteristics invisibly increase the difficulty for ordinary people to participate. The existing investment forms in the cryptocurrency space include:
Spot investments seem to only require simply buying and holding cryptocurrencies (such as Bitcoin and Ethereum), with controllable and relatively stable risks.
But you must also have a deep understanding of the projects involved to profit from long-term holding; otherwise, blindly buying in may just make you a 'bag holder'.
Looking at contract leverage, although it can amplify your own funds for trading, seemingly offering high potential returns, the risks are actually much higher.
A slight market fluctuation can lead to liquidation; ordinary people lack professional trading experience and psychological resilience, often resulting in total loss.
Lastly, the cryptocurrency space also has a primary market where you can participate in early investments in projects; it seems that there are many projects, everywhere is an opportunity, and the market is full of gold.
However, truly high-quality projects are extremely rare, while Ponzi schemes and low-quality projects emerge endlessly; a small mistake can lead to total failure.
Therefore, those who can consistently make big money in the cryptocurrency space are often exchanges, market makers, project teams, and other groups at the top of the food chain.
They can easily harvest retail investors due to information gaps, resource and capital advantages.
Ordinary people, as retail investors, have almost no chance against capital; the 80/20 rule exists everywhere, and capital almost always resides in the '20'.
So where are the opportunities for ordinary people?
Although the cryptocurrency space is full of risks, ordinary people are not completely without opportunities! The key lies in enhancing understanding, choosing suitable tracks, and strictly controlling risks.
The most important thing here is to 'enhance understanding'!
Success in the cryptocurrency space largely depends on insight into projects and the market; on-chain emperor 0xSun has lamented several times on social media: choice is greater than effort.
The reason is that he is a living example; he was exposed to the cryptocurrency space during college and persisted.
A few years later, while his classmates were still looking for jobs and seeking higher salaries, 0xSun had already achieved some success in the cryptocurrency space.
Ultimately, during the Trump coin period, years of accumulation completely erupted, achieving a leap in wealth and gaining financial freedom.
The final result is not achieved overnight, but rather a culmination of years of sitting on the chain and accumulating knowledge, which allowed him to seize a big opportunity and dare to invest large sums.
These decisions are made only after continuously enhancing understanding.
An opposite example is myself; I had already completed my analysis of Trump coin when it was at 3 dollars and participated. But ultimately, under the influence of market sentiment and insufficient understanding, I sold everything at 6 dollars.
Ultimately, in this unprecedented narrative, I did not gain significant returns, merely doubling my investment.
In retrospect, I regretted it but it was too late, yet it made me realize the importance of cognition and analytical ability in the cryptocurrency space!
1. How can ordinary people enhance their understanding? Is there a way to follow?
I divided enhancing understanding into three major parts: learning basic knowledge, engaging with professional circles, and cultivating independent judgment, and then breaking each part into smaller tasks that can be learned step by step.
For example, you can start learning basic knowledge by understanding blockchain technology, project business models, token economics, market cycles, etc.
Engaging with professional circles can start from joining high-quality communities, following industry influencers, and participating in offline events.
Finally, cultivating independent judgment requires learning to analyze project white papers, community activity, team background, etc., and developing the habit of not blindly believing in KOLs or market sentiment.
When you can accomplish the above points, you can be considered a beginner in cryptocurrency investment.
2. Different people do different things
The same person may not be suitable for all tracks; if you haven't made money in the cryptocurrency space for a long time, you might as well try switching tracks.
For example, a long-term holding strategy for spot investments is suitable for those with low risk tolerance; you just need to establish a long-term mindset and not be affected by losses or gains from short-term fluctuations.
Decentralized finance like DeFi, which earns stable returns by providing liquidity to the market or staking tokens, is suitable for those with a certain risk tolerance; it is similar to real-life financial management, with controllable risks and returns.
Alternatively, participating in early investments in the primary market is the best track for wealth leaps, but it requires strong project judgment ability and is not suitable for everyone. If you lack strong speculative ability and psychological resilience, I advise you not to participate.
If there is another bull market in the cryptocurrency space, can you seize it?
I want to ask all the friends who see this article, including myself! If there is another bull market in the cryptocurrency space, can I and you really seize the opportunity?
After thorough consideration, the answer I came up with is: it depends on whether you (I) have been preparing all along.
There are many opportunities in a bull market; the overall market sentiment is high, and quality projects and garbage projects coexist.
But only if you and I continuously learn, fully understand market cycles, learn to identify quality projects, and adhere to investment strategies without being swayed by emotions.
Only then can one achieve satisfactory results in a bull market.
The way for ordinary people to break through.
First practice 'internal skills', then talk about making money.
The cryptocurrency space is not lacking opportunities; what is lacking are people who 'live to see the day the opportunity arises'.
1. Cognitive upgrade: Don't treat the cryptocurrency space as a casino; it is an 'information war'.
Beware of 'three no news': project recommendations with no source, no logic, and no data are 99% scams.
Establish your own information sources:
Data tools: CoinMarketCap (to check market trends), DeFiLlama (to check on-chain data), Dune Analytics (for on-chain analysis).
In-depth content: Follow top KOLs in the industry, learn more, observe more, and summarize after reviewing.
2. Capital management: Always remember the 'three don'ts'.
Do not use high leverage (contracts are a game for professional players; ordinary people playing = suicide).
Do not All-in on one coin (BTC+ETH occupying more than 50% of your position, the remaining allocation depends on personal risk preference).
Do not borrow money to invest: (the fluctuations in the cryptocurrency space are too great, and the mindset can collapse) The most important thing in investing is to establish your own stable profit system and then replicate it to truly grow stronger.
3. Long-term mindset: Be friends with time; at least have a long-term plan of 3 to 5 years.
Short-term depends on luck, long-term depends on logic:
I once spent three months researching DeFi lending protocols and seized the early mining opportunity of a certain blue-chip project, outperforming short-term trading for a year.
Hoard core assets:
Bull markets speculate on altcoins, bear markets hoard BTC/ETH—this is the consensus of veteran players. But from this cycle, it seems that the big brother will always be your big brother.
Learn more, and make sure to pay for learning.
Long-term persistence in learning can significantly change your mindset; paying for learning can help you avoid detours and also stimulate your learning motivation. This cost is far lower than the cost of liquidation, but try to avoid learning about contracts!
Don't be anxious about 'not being on time'; the cryptocurrency space has never lacked opportunities.
Treat the cryptocurrency space as an 'information monetization' exam room, not a gambling table.
Finally, I want to share a phrase with everyone: 'In the cryptocurrency space, those who live long eventually become their own prophets.'
There is only one type of success in the cryptocurrency space: continuous learning and self-improvement.
Successfully recouped losses, account doubled. Stick close to Orange East, position in advance, and enjoy the big gains!
Continuously follow: NXPC AERO.