The future is a vast blue ocean, but retail investors without awareness may not grasp the opportunity to dive in and reap profits.
The cryptocurrency industry has gone through 17 years since the birth of Bitcoin, from an overlooked innovation phase to a period of widespread frenzy, and is now moving towards a stable and mature development phase. Each cycle breeds huge wealth opportunities, and now we stand at the starting point of a new cycle.
1. The three major cycles of the cryptocurrency industry: from innovation to maturity.
1. Innovation phase: Unnoticed disruptors. Every great industry starts with doubt and underestimation. When Bitcoin was born in 2009, most people regarded it as a 'digital toy,' but a few foresighted individuals had quietly laid the groundwork. It was these disruptors who planted the seeds for changing the world when no one understood. Insight: True opportunities are often hidden in obscure fields. Dare to bet early to become a future winner.
2. Bubble phase: The accelerator of speculation. Bubbles are not entirely harmful; they are 'catalysts' for new technology to spread to the masses. From the ICO boom in 2017 to the Memecoin craze in 2021, speculation attracted countless new users into the cryptocurrency world, driving technological proliferation and ecosystem expansion. Insight: The bubble phase is an amplifier of traffic and consensus, but beware of the traps of short-term wealth.
3. Maturity phase: The era of construction and implementation. Now, the cryptocurrency industry is transitioning from the bubble phase to the maturity phase, characterized by:
Wealth accumulation: Early participants have completed the original accumulation, and the market has entered a game of existing stocks.
Risk preference shift: Investors are shifting from high-risk speculation to stable investment. Project-driven upgrades: Moving from storytelling to core real demand.
Regulatory compliance: Licensed operations are becoming mainstream, and the global regulatory framework is gradually becoming clear.
The maturity phase is the stage of infrastructure accumulation and the true starting point for creating value. The following six major opportunities will become the core tracks of the next cycle!
1. PayFi: The future of on-chain payments.
From cash to mobile, each upgrade in payment methods has changed our lives. Now, blockchain technology is pushing mobile payments to new heights—PayFi.
Core advantages of PayFi:
· Faster, more transparent: Blockchain transactions require no intermediaries, with second-level settlements. Decentralized: Global borderless transfers break traditional financial barriers. · User sovereignty: With the private key in hand, you control your assets.
Case Study: Stablecoins (like USDT, USDC) have been widely used in cross-border e-commerce and emerging markets, and PayFi is becoming the 'new language' of global finance.
Opportunities: Focus on supporting low-cost, high-efficiency Layer 2 networks and on-chain payment protocols.
2. AI + Crypto: A super fusion of technology and finance.
The combination of artificial intelligence (AI) and blockchain is injecting new vitality into the cryptocurrency industry. Here are the five major intersections of AI and Crypto:
1. On-chain AI service settlement: Pay for AI model invocation fees on demand through smart contracts.
2. Decentralized AI network: Model training and deployment on a decentralized network, combined with zero-knowledge proofs (ZK) to ensure data credibility and prevent human tampering.
3. Data incentive mechanism: Use tokens to incentivize users to upload datasets or label data, solving the data bottleneck in AI training.
4. AI-driven wallets/Agents: Smart wallets optimize investment decisions or execute automated trades through AI analysis of on-chain data.
5. Security and verification: Blockchain is used to verify AI outputs, preventing deep forgery and data tampering.
3. RWA: Real-world assets on-chain, connecting the traditional and the future.
RWA is a bridge between the cryptocurrency industry and traditional finance, with the tokenization of real assets such as real estate, bonds, and artworks accelerating. Traditional financial giants like BlackRock, Goldman Sachs, and Franklin Templeton have all entered the field, marking the transition of RWA from narrative to implementation.
The core value of RWA:
Liquidity enhancement: Tokenizing low liquidity assets like real estate to lower investment thresholds. Global reach: Achieving cross-border transactions of assets through blockchain. · Transparency and traceability: On-chain records ensure transactions are open and transparent.
4. Launch platform token issuance platform: Silicon Valley is trying a new token issuance model: ISO (Initial Seed Offering), which differs from pump fun memecoin issuance platforms in that the founders have strong backgrounds and are real-name entrepreneurs.
5. The future decentralized exchanges (DEX) that may emerge should possess the following characteristics:
Non-custodial user assets, with limit orders.
RWA DEX supports trading of real assets on-chain.
Cross-chain bridge integration, reducing user reliance on centralized exchanges (CEX).
Community co-managed LP model, with the fund pool managed by a DAO, automatically optimizing liquidity and yield strategies.
KYC compliant DEX connects on-chain KYC, meets FATF requirements but retains self-custody DEX, redefining 'decentralized finance' is an excellent stage and battlefield for entering a 'compliance + assets + experience' new phase.
6. Memecoin: A perpetual motion machine of culture and traffic.
Memecoin is not only a product of speculation but also a symbol of Web3 culture. They will continue to exist because:
Traffic entry: Memecoin attracts new users into the cryptocurrency world. · Spread and fission: Meme culture quickly forms consensus through social media. · Community experiment: Memecoin is a community-driven decentralized experimental field.
1. Do not borrow money to trade cryptocurrencies, do not borrow money to trade cryptocurrencies, do not borrow money to trade cryptocurrencies.
Borrowing money to trade cryptocurrencies indicates a gambler's mentality, and in the end, you will have nothing.
2. Do not go all in on leverage, do not go all in on leverage, do not go all in on leverage.
Leverage +, going all in, gambler’s mentality, and in the end, you will have nothing.
3. Do not trade on small platforms; most small platforms are internal markets.
The inner market is just creating a K-line; your money has not entered the market but into that shell company’s account.
The very rules of the game determine that most outcomes of leverage will ultimately end in zero. The capital behind loves to see a group of retail investors betting on leverage because the next moment the money will fall into their pockets!
What if? What if going all in actually wins?
This market is one where you outsmart and outplay traders; principles combined with patience will let you eat meat, which is also the meat of other retail investors. It is not a fair game in itself.
What if going all in wins? Even more terrifying, you might think you're a god. Once you win once, there will be countless times, and the money you gain will eventually go back in.
As for those myths of getting rich quickly, just listen and take it easy. In the words of a certain expert, this world is essentially a makeshift stage; where do so many myths come from!
When it moves sideways and suddenly dips, it must be a small drop, and after the drop, it will rise. When it moves sideways and suddenly rises, it must be a small rise, and after the rise, it will drop.
Sideways movement is a state of bottom accumulation, and there is a question that has not been addressed: why do traders prefer a sideways state to accumulate chips?
When traders start accumulating at the bottom, due to continuous buying chips, market purchasing power increases, and the number of chips correspondingly decreases, which makes price increases an inevitable result.
So when the trader enters the market, the price will no longer create new lows; this statement is very important.
So why choose a sideways mode to accumulate chips?
Sideways price fluctuations are small, and retail investors will automatically exit after a long time without profits, which allows them to quietly pick up cheap chips at the bottom.
Even if you tell them that these chips are very cheap, and they have no returns for a year, can you withstand it? Very few retail investors can.
The market has some short-term traders or speculators. To prevent giving these short-term traders opportunities for speculation, sideways movement is the most powerful defensive form.
Sideways movement without huge fluctuations makes it hard to attract retail investors' attention. Often, by the time you notice, the price has already hit the ceiling.
These are the advantages of sideways movement. After moving sideways for a period, the trader has acquired a certain amount of chips. The sideways pattern will begin to shift to a shaking mode, which involves fluctuating up and down, with the goal of shaking off those shaky chips. Once those shaky chips are collected, the trader's chips also reach the collection target, and the next step is to rise.
So after moving sideways, it will shake. If it shakes down, it cannot be a big drop; breaking through the trader's cost price would be a major incident. Therefore, if it suddenly dips while moving sideways, it must be a small drop, aiming to shake off the shaky chips.
The same goes for the opposite.
If it moves sideways for a while and suddenly rises, it indicates a signal of initiated shakeout. If it rises directly without shaking, it does not make sense (unless it's speculative funds that shoot and leave). The chips are in the hands of each holder, and the volume that naturally flows daily is not enough; only shaking can stir the market, increasing the speed of chip circulation to achieve rapid accumulation.
Even during an upward movement, it must rise while shaking; one reason is to shake off following orders, and the other is to buy low and sell high.
Of course, some traders also adopt the model of shaking first and then going sideways, with the purpose being the same.
Sideways movement is for quietly collecting chips, while shaking is for further collecting the chips of the unconvinced.
Still the same saying, if you don’t know what to do in a bull market, click on the avatar of Kui Ge, follow, and plan for bull market spot trading and contract passwords, shared for free.
