Every day we hear about someone becoming rich in the crypto world or someone investing in a low-quality coin A8. It seems everyone has their own method. Successful people can naturally talk extensively about it. Of course, these methods may not be openly shared, but it is worth reflecting on a question: Are these methods suitable for us? Does being advanced mean being correct? Are there any simple methods that can withstand the test of time? This article aims to provide several relatively low-threshold, actionable methods for ordinary investors.
1. Long-term Holding (HODL): Time Compounding
Long-term holding is an investment strategy that exchanges time for value, especially suitable for the highly volatile Bitcoin market. If you don't grasp the cyclical patterns well, it is easy to get left behind in the middle of a bull market and cut losses at the bottom of a bear market. As mentioned earlier (whether to buy more as prices fall or to stop loss), the difference between long-term and short-term investment lies in sacrificing time and frequency for a higher win rate. As long as the blockchain industry exists, resources will gradually concentrate towards the top, which is Bitcoin. Holding Bitcoin ensures you are on the right train for the long term, and the compounding effect will take you to great heights.
In trading, some believe in buying more as prices fall, while others believe in stopping losses. Which is correct?
The principle is also very simple: the total supply of Bitcoin is limited, which means it is a zero-sum competition. If you have one more, it means someone else has one less. If you become the mayor, then I can't. If I am the most handsome person in the crypto world, then you certainly are not. When something is desired by everyone and its total supply is limited, while money in the world is being printed at a massive speed, it creates a favorable environment for Bitcoin to rise long-term. Additionally, the selling pressure from halving events every four years will decrease, and now many large mining farms in North America don't sell the coins they mine. In a market where there are buyers but not many sellers, what else can happen besides continuous price increases?
As long as you choose mainstream coins with long-term upside potential, like BTC, ignore short-term fluctuations, and store them in a cold wallet, long-term holders generally do not need any complex operations to achieve exaggerated annualized returns over time.
2. Regular Investment: Diversify Risks
Regular investment is a method that is relatively suitable for beginners. Its benefits are twofold: first, it can help you maintain a peaceful mindset. Even if the market starts to plunge at the beginning, since a large part of your money remains uninvested, you may feel inexplicably excited because your remaining funds can buy more. Second, you will certainly have some funds that capture the market bottom, which means you will have positions at the lowest point in the market, and these positions will certainly yield a guaranteed 3-5 times return in a bull market. Take this year's poor performance of Ethereum as an example; you currently have at least 100% profit, which is much less painful than if you had invested when the price was 1500.
3. Infinite Grid
The infinite grid strategy is a grid trading strategy in a large range. For example, if Bitcoin is between 30,000 and 300,000, you sell when it rises by 100 and buy when it falls by 100, capturing all the fluctuations while ignoring the trend. This is similar to a market maker strategy, providing liquidity to the market without stop-loss or take-profit; you just keep running within this range. As long as there are price fluctuations, there is money to be made, and there is no psychological burden. After four years, a 100% return is pretty much guaranteed, and the key is one word: worry-free. No need to be tormented by market conditions.
4. POW Mining:
Of course, I'm not talking about Bitcoin mining; Bitcoin mining is now monopolized by consortiums and has practically no relation to retail investors. Even if you have a low electricity price, it takes 48-60 months to break even, by which time the machines may already be obsolete. However, there is a magical coin that might present an opportunity for us, potentially achieving a 400% return in four years in terms of coin value. We know there is a saying: it's easier to make money in the crypto world than to breathe, but making coins in the crypto world is harder than eating s**t, which is the point. We often hear of someone making ten times their money through Bitcoin, but we never hear of anyone who started with 100 coins and ended up with 1000 coins. Just maintaining 100 coins without decreasing is already a sign of being very skilled.
These are four methods for lazy people in the cryptocurrency world to make money, simple and mindless without requiring a high IQ or spending a lot of time. I believe the most important thing is that these methods can help you maintain a more peaceful mindset, without being tormented by the extreme fluctuations of the market every day. If you use them, 80% of your life can be spent in happiness; if you just watch the market every day, 80% of your time will be spent in pain.
I hope these methods can provide you with clear action guidance. Finally, if your returns in this bull market are below 100% or if you are even losing money, it indicates that your understanding of the crypto world still has a certain gap with reality. I recommend you join my community to gain more in-depth analysis, learn top-tier theories in the crypto world, and practice my strategies with like-minded partners to achieve wealth growth in the crypto space.
