Phase One: The fearless rookie, buying blindly and making profits, thinking I’m a stock god (2017 - early 2018)
Scene recreation: Back then, Bitcoin was incredibly hot, and I heard people say 'Ethereum' is 'Bitcoin 2.0.' I thought, 'Wow! Another opportunity to get rich? Let's follow the trend!' I got carried away, not understanding what smart contracts were or what blockchain really is, just feeling that this thing could rise! I took out $300 (which at the time was about 2000 RMB) and bought 0.5 ETH. Wow, a few months later, I watched the numbers in my account soar! By the end of the year, that 0.5 ETH was worth $1400 (close to 10,000 RMB)! I felt incredible, walking with confidence, thinking I was the chosen one in the investment world, and that Buffett and Soros couldn't match my insight!
Practical gains/mentality: $300 -> $1400 (+366%). Mentality: “I’m a genius! Cryptocurrency? So easy! Just buy with my eyes closed!”
Phase Two: The bear market hits hard, almost losing my shorts before realizing 'money earned by luck will eventually be lost by skill' (2018 - The fall no one recognizes)
Scene recreation: The fun hadn't faded yet, and the market direction changed suddenly. That bear market in 2018 was like an avalanche. My precious ETH plummeted from its peak, watching it fall below $1000, $500, $300... until it dropped to $80 each! Doing the math, that beautiful fantasy of $1400 shrank to only $40 left (0.5 * $80). I put in 2000 RMB, and came out with less than 300? It felt like my heart was bleeding, like being robbed! At that moment, I was completely stunned, realizing: “Relying on luck for a one-time win is completely different from relying on skill to make money continuously! This thing is too deep!”
Practical loss/mentality: $1400 -> $40 (-97%!). Mentality: “I’m such an idiot! The market is so rigged! But... it seems I can't blame the market entirely?” After reflecting, I started to ponder: what exactly is Ethereum? What drives its rise and fall?
Phase Three: Enduring hardship, transforming from 'trading coins' to 'understanding' (2019-2020 - Dedicating to practice)
Scene recreation: Losing money is the best (and most expensive) teacher. This time, I truly calmed down and no longer fixated on the price jumping up and down. I started to really dig in:
Smart contracts: Oh! So Ethereum is not just 'money,' but also a 'world computer' that can run programs? You can write self-executing code (contracts) on it? That's interesting!
DeFi (Decentralized Finance): What? No need for banks? You can deposit, borrow, exchange currency, and even 'earn interest on deposits' (liquidity mining) directly on the blockchain? This concept is revolutionary! It feels like discovering a new continent.
Get hands-on: Just looking is not enough; you have to take action! On the testnet (a practice ground without real money), I followed the tutorial and created my own 'airdrop token' (of course, it has no value, just for learning). The key was the shift in my mindset: no longer fantasizing about overnight wealth. The market was stagnant, with ETH prices hovering below $200. I figured, as long as it doesn’t completely die, it should be fine in the long run, right? So I set a 'cautious development' strategy: if ETH drops below $200, I'll take out some spare cash to buy 0.1 or 0.2, accumulating like an ant.
Practical operation/mentality: Persist in dollar-cost averaging below $200 (like buying at $180, $150, $130... all of which I’ve done). Mentality: “This time, I’ll understand before I play! No positioning in a bear market means only sorrow in a bull market. Buy slowly, don’t go all-in!”
Phase Four: Hard work pays off, DeFi explosion and the 'airdrop from the sky' of UNI (Summer 2020 - Surprise arrival)
Scene recreation: In the summer of 2020, DeFi suddenly exploded like a powder keg! Various new projects popped up, with dizzying gameplay. With my prior learning, I became bolder and tried the hottest 'liquidity mining' at that time. Simply put, I paired my ETH with another coin (like the stablecoin DAI) and deposited them into a DeFi platform's pool (like Uniswap), providing liquidity for others to exchange, and the platform rewarded me with its new coins based on how much and how long I deposited. It felt like depositing money in a bank, but the interest was incredibly high (of course, the risks were also huge)! I cautiously used a small portion of my funds to participate.
The 'pie' has arrived! Even more amazing things happened! As an early user of Uniswap, one day I suddenly found 400 coins I had never seen before—UNI! I checked and was stunned; this was an 'airdrop' from the Uniswap platform, given for free! At that time, one UNI was worth about $3-4, so 400 of them was $1200-$1600 (8,000-11,000 RMB)! This feeling was even better than winning the lottery! The key is that this money wasn't earned by speculating on prices, but purely because I had 'used' this platform early on, and they gave me 'benefits'! At that moment, I had an epiphany: 'In the blockchain world, actively participating in ecosystem building and using new things can lead to unexpected rewards! It's much better than being anxious while staring at price charts!'
Practical gains/mentality: Earned some new coins from liquidity mining (returns fluctuated greatly), + the 400 UNI I picked up ≈ $1200-$1600. Mentality: “Wow! Knowledge is indeed money! 'Airdropping' and 'participating in the ecosystem' is not a joke; it’s real cash! My perspective has opened up!”
Phase Five: The madness of the bull market and the profound lesson of 'greed turning into poverty' (2021 - Rollercoaster peak)
Scene recreation: In 2021, the bull market arrived! ETH shot up like a rocket, breaking historical highs and soaring above $4000! The ETH I had accumulated during the bear market, which was only a few dozen or a hundred dollars, combined with UNI airdrops and other mining earnings, resulted in substantial gains on paper. People tend to get carried away when they make money. Around me, there were voices saying 'ETH will hit $10,000,' 'Hold on! Stars and the sea!' I got swept up in the frenzy, completely forgetting about taking profits, always thinking 'it can go higher!' What happened? The market suddenly turned, and ETH plummeted from over $4000. Watching my profits evaporate quickly was worse than the feeling in 2018! Because this wasn’t money lost due to ignorance; it was money lost due to greed!
Practical lessons/mentality: Significant drawdown on paper profits (possibly a 50%+ retracement from peak profits). Mentality: “I’m such a greedy fool! In a bull market, even pigs can fly, but being able to safely land with money is true skill! 'Those who can buy are apprentices; those who can sell are masters'—a saying that rings true! Next time, I must establish strict rules: when it's time to take profits, take them!”
Phase Six: The baptism of explosions, cultivating a 'bear market zen mindset' (2022-2023 - Growing through storms)
Scene recreation: 2022 was like hell for cryptocurrencies. The LUNA/UST so-called 'algorithmic stablecoin' Ponzi scheme collapsed, evaporating hundreds of billions of dollars in just a few days; then the top exchange FTX exploded, and founder SBF became the scammer of the century... The entire industry's credibility collapsed, and ETH suffered greatly, plummeting to around $800. But this time, I wasn't as panicked. Why?
Truly understood: I realized that the core value of Ethereum (ecosystem, developers, applications) hasn't changed; these explosions are just external factors acting out, not the end of Ethereum itself.
Having a strategy: After experiencing the previous rounds, I know that bear markets present opportunities. Instead of selling at a loss, I took out my prepared 'bullets' and added to my position when it was over $800. My mentality was: 'You panic, I’ll be a little greedy (but rationally greedy).'
Looking long-term: My focus is no longer on daily price fluctuations but on Ethereum's own upgrades and development.
Practical operation/mentality: Adding to my position in the $800+ range. Mentality: 'Thunderous noise? Stay calm! Distinguish between what is noise (exchange mishaps) and what is fundamental (the Ethereum ecosystem). Others are fearful; I... can be reasonably greedy (but never all-in)!'
Phase Seven: The Shanghai upgrade and 'steady happiness' - staking income (2023 - Model upgrade)
Scene recreation: In 2023, Ethereum completed the critical 'Shanghai upgrade.' The most important point is: the previously staked ETH can finally be withdrawn anytime! This solves the biggest concern about staking—liquidity. I thought, this is reliable! Instead of worrying about prices every day, why not earn some 'passive income'? I put a portion of my ETH that I didn't plan to touch for a long time into the staking pool. The principle is simple: you 'deposit' ETH to help maintain the security of the Ethereum network (similar to depositing money in a bank to support its operations), and in return, you can earn interest annually (currently around 3%-5%). Although it's not as exciting as the skyrocketing prices in a bull market, this feeling of 'steady rental income' is a breath of fresh air in the highly volatile crypto world!
Practical returns/mentality: Staking ETH yields an annualized stable return of about 3-5% (calculated based on the amount of ETH). Mentality: “Price skyrocketing and plummeting? Whatever! I treat this portion of ETH as rent collection; steady and gradual income is the way to go. If a bull market comes, it's a bonus; in a bear market, I still earn, steady!”
Now & Future: The principle is simple, the 'old dog' strategy.
Core position, long-term holding (HODL): Hold most of my ETH and don't move it! The goal is the next cycle (maybe 2025?) or even further. This is a faith position, betting on Ethereum's long-term value as the 'foundation of digital civilization.'
Actively participate in the ecosystem, earn 'cognitive money':
Airdrop: When I see reliable new projects or new chains, I’ll interact with them (safely!), and who knows, there might be another UNI pie. But don’t mindlessly take airdrops; only engage with what I understand and find valuable.
Staking: Continue to earn stable returns, accumulating gradually.
Governance: Hold some important governance tokens (like the initially airdropped UNI), and occasionally participate in community voting, contributing a bit to the ecosystem.
Emotional management, unity of knowledge and action:
Don't chase prices: Prices are skyrocketing? Just watch the excitement, but never FOMO (Fear of Missing Out) into buying.
Don't panic sell: In case of a market crash? Take a deep breath first, analyze whether the fundamentals have deteriorated or if it's just market sentiment. As long as the fundamentals are not seriously flawed, it might actually be an opportunity.
Strictly execute profit-taking/stopping losses: The ironclad rule earned from painful lessons! When the target is reached or circumstances change, it’s time to go, never cling to the battle.
Over the years, the biggest 'gold mine' is not the account balance, but the cognitive upgrade in my mind.
Volatility is the norm; rationality is armor. The market can go wild without reason, but you must maintain your reason. Fear and greed are the harvesting machines for retail investors.
Ethereum is not just a 'trading coin'; it is a new continent full of possibilities. Understanding the ecosystem and participating in its construction (even if it’s just using it) is much more valuable than merely betting on prices and often leads to unexpected rewards (the UNI airdrop is a perfect example!).
Investing is a marathon, but also a practice. What you cultivate is cognition, mentality, and discipline. Time only rewards those who truly understand value and can hold on. Short-term wealth myths are mostly traps; long-term compound growth is the way to go.
“Steady as a rock” is not about lying flat; it is the composure after weathering storms. Be diligent when it's time to learn, decisive when it's time to act, patient when it's time to wait, and resolute when it's time to stop.
Conclusion: From entering at $300 and getting beaten up, to learning DeFi and scoring UNI pies, then greedily riding the bull market rollercoaster, experiencing major explosions but still daring to add positions, and finally relying on staking for stable cash flow... Throughout this journey, the money I earned may have some luck involved, but the money I lost and the lessons learned, as well as this 'old dog strategy,' are the true wealth secrets. The future of Ethereum will surely have great fluctuations, but with our mindset and strategy, we are already prepared. Slow and steady wins the race! Let's continue on this path of cryptocurrency cultivation!