The cryptocurrency market has a hard-to-detect investment trap
There are always people who make a fortune in one sector and then jump into another completely different sector with the same large position
Even greatly increasing their position/leverage — and end up losing everything; this usually happens in a bull market.
For example: Many people might have quickly earned their first pot of gold through hard work in frontline sectors (like chain oil, yield farming, DeFi)
Then they dive into the MEME market with the same scale of funds, completely ignoring that it is a game with entirely different rules, risks, and skills required.
At the same time, people severely underestimate the role of luck in a bull market.
If you can make a large sum of money in a short time, it is not always because of how skilled you are. There is often a significant element of luck and randomness involved.
Looking at a longer time frame, can these lucky individuals really maintain stable profits? The shorter the time period, the more randomness and interference factors there are.
Countless people can go from zero to a million in wealth, only to return to square one overnight. The most intuitive example is that if you have followed the trading leaderboard of exchanges, you will find that over 90% of traders do not last until the next cycle.
Cryptocurrency is a market with rapidly evolving narratives, which means you may face new tracks or new gameplay at any time. Regardless of how much you earned before, you must remain humble and try to participate in new tracks and gameplay with a conservative attitude.
For instance, only invest 1-5% of your funds into the AI Agent gold rush, and then spend time slowly learning and sorting out investment logic. If you jump in with over 70% of your funds right away, you will experience a 99.9% drop a few days after the market ends.