First, let me share my understanding of BTC. BTC is currently the most worthy asset to hold long-term in the world, without exception. Here’s why:
1. BTC is the mirror of fiat currency. Since the collapse of the Bretton Woods system and the uncoupling of fiat currency from gold, fiat currency has begun its irreversible path of unlimited issuance. The top-level people use the power of currency issuance to plunder the labor force of the middle and lower classes, and this is true for any country. Meanwhile, the total amount of BTC remains constant, fiat currency will only depreciate, while BTC will appreciate.
2. Continuing from viewpoint 1, BTC has grown over more than a decade, amidst countless scams and calls for its demise, with prices rising higher and demand growing larger. National and institutional involvement has created strong consensus. I can responsibly say that the possibility of BTC going to zero is now zero; the crypto space will not disappear.
3. Since BTC was born, it has never trapped anyone. Every peak in the bull market is a new high. As long as you hold for long enough, you will reap substantial rewards.
Now let's talk about the mindset of coin holders. It has been observed that retail investors in the crypto space have the following characteristics:
1: Most people panic during pullbacks and FOMO at new highs.
2: Holding a basket of altcoins while looking down on BTC.
3. Watching the news in the crypto space, big whales transfer BTC to exchanges, ETF outflows, BTC strategic reserves, etc.
4. Playing contracts, looking down on spot long-term investments.
The above four points must be avoided in order to have a chance to make money in the crypto space. In fact, making money in the crypto space is very easy; what matters is the mindset. The correct approach is as follows:
1: Continuously DCA buy at relatively low levels, and after about 4 years, continuously DCA sell at relatively high levels, without doing any swing trading or contracts. Invest spare money; if you leverage borrow to invest, you won’t be able to withstand huge fluctuations and will make wrong decisions. I have lost up to $400,000 in a day (forgot to take a screenshot), but it did not affect my mindset. I still do what I need to do; even if it rises, I won't act. Just use the seemingly dumbest investment strategy: hold on.
2. Do not panic or FOMO based on news. News is deliberately shown to you by institutions and manipulators. Do you think they would kindly let you run away at high prices and buy more at low prices? The crypto space is not a charity; they are here to make money from us.
3. The BTC position must be sufficient. Regardless of whether you have $1,000, $10,000, or $500,000, at least 50% of your allocation should be in BTC. The larger the capital, the more BTC you should allocate (I have a small amount of capital but a conservative allocation of 70% BTC, 15% Ethereum, 15% altcoins). Do not underestimate Bitcoin; it has the strongest consensus and the most stable price. Altcoins may rise sharply in the short term but also fall sharply, making it hard to hold if the position is large.
Finally, to summarize, everyone can configure a portion of cryptocurrencies. This is our only way to combat the increasingly inflated prices. Playing in the crypto space does not require technical skills, only the right mindset. Wall Street bigwigs like Michael Saylor hold their assets without moving them; why would you sell? Do you think your investment skills are better than theirs? Making money is very simple, just do one thing well: hold on, hold on, hold on!
