Have you ever thought about a question: why can someone who knows nothing, as long as they invest regularly and hold on to Bitcoin, make money?
I have thought about the essence of this issue; the root lies in their behavior of excluding all human factors from interference in making money, which is unrelated to emotions.
In investing, once personal emotional subjective judgment is involved, it becomes deadly.
As long as you are influenced by market emotions when investing, it will definitely reduce your returns or lead to losses, without exception.
The father of quant, Simons, achieved an annualized return of 64%, far exceeding Buffett's 20%.
But before this, Simons relied on 13 years of research on macro fundamentals to invest and make money, but ultimately did not make money and gave up, shifting to sophisticated mathematical models that excluded any human emotional interference and made money in the market.
Human emotions are the biggest interference in investing.
In the cryptocurrency world, some people make money through trading, some hold coins long-term, some rely on contracts, some harvest airdrops, and some KOLs earn commissions and customer losses.
As long as it is profitable, it is not influenced by emotional factors.
Those who make money through trading have a clear plan for why they buy, when they sell, and how much they earn. They do not chase high prices, do not catch falling knives, and do not FOMO.
People who hold coins to make money just buy, regardless of highs or lows, regardless of market sentiment; they just buy Bitcoin, not caring about the right or wrong in the cryptocurrency space, and they hold for more than two cycles.
Those who make money through contracts take their profits out, always open the same amount of positions, set stop losses and take profits, rest if not making money, and find a new strategy. They are not influenced by emotions, do not hold onto losing positions, do not use excessively high leverage, and do not open positions at random.
Those who earn by harvesting airdrops, regardless of whether airdrops happen or not, always persist in brushing; if one doesn't work, they continue with the next one, and they will not be discouraged or complain.
Those who make money as KOLs will not sympathize with others' losses; they will not feel moral guilt for their own profits. Of course, they themselves will not engage in contracts and will not be dragged down by those who are making money; they are not influenced by emotions at all.
Making money in the cryptocurrency world requires eliminating all emotions. If you are thinking about buying a coin because you have a thought like 'this will make me rich, what if I miss out, others have bought a lot, others say it's good,' then you should not buy it. The probability is high that you will get 'cut'.
Many people say regular investment is easy; I think this is naive. Those who have not done it say it's easy.
Regular investment is the hardest thing because it is slow; slowness is the most anti-emotional. Not only is it slow, but it also requires enduring long-term losses. As soon as you develop emotions against the market, you basically give up. There will always be people who buy more when prices drop, buy less when prices rise, or buy more when prices rise and don’t buy when prices drop. Or they might take a small profit and sell instead of holding on.
I have written many articles about ordinary people regularly investing in BTC, not to say that making money in investments must be through BTC, or that it must be regular investment.
Regular investment allows the most ordinary and least skilled people to make money; it helps them eliminate emotional disturbances.
On the contrary, smart people find it harder to do regular investment; those with average abilities find it easier to do regular investment.
Not only in investing, but in anything; once emotions are involved, such as excitement, sadness, or pride, excessive behavior leads to distorted actions, which will result in poor outcomes.
Those big figures, why do they practice, go into seclusion, seek masters, walk in the desert, and stay in temples?
In fact, these behaviors are meant to dilute one's emotions, as emotions increase the entropy in one's actions.
It will not bring any good luck; instead, it will increase your burden.
If you haven't learned to eliminate emotional disturbances, then no matter what skills you learn or what methods you use in the cryptocurrency world, you will not make money.
Those who make a lot of money in the cryptocurrency world, you can ask them, and they will not be affected by emotional disturbances.
When they make money, they smile slightly and continue to the next deal; when they lose money, they also smile slightly and continue to the next deal.
Nowadays, many people share their 'emotional cleansing' activities on social media, such as copying books, writing, meditating, and so on. Essentially, all these activities aim to actively wash away emotional disturbances.
This may seem useless, but it is actually very useful. People who are anxious and unhappy in life do not engage in these emotional cleansing activities; rather, those who are relatively successful in life often do such things. Of course, it's not because doing these things makes life better, but rather that such people do not make subjective emotional judgments in anything they do. They have a standard for what is good and what is bad, and once they cross the boundary of what is harmful, they simply refrain from it, and they do not act based on emotions.
Whether it is good emotions or bad emotions, they are no good for personal development. Being too happy or too excited can easily lead to excess. What we often refer to as being 'too high' is just that; it can easily lead to problems. Being too negative also leads to a lack of energy.
Those who make a million U from ten thousand in the cryptocurrency world are definitely not influenced by emotions. The key is not how magical their methods are, but their ability to restrain their emotional disturbances.
However, without going through three cycles, ordinary people generally cannot achieve this; those who can are certainly guided by an industry veteran to pass this hurdle.
These methods have helped me move from confusion to clarity. If you have also experienced similar confusion, feel free to follow me as we turn 'difficult problems' into 'answers.'
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