Is it really hard to make 10 million in the cryptocurrency world? Actually, the hard part is this!
Introduction: The Temptation of Wealth Myths in the Cryptocurrency World and the Reality Check
The cryptocurrency world is a realm full of magical colors. The myth of getting rich overnight is not uncommon here, with headlines and social media flooded with stories of 'someone investing in Bitcoin and becoming a billionaire' or 'someone achieving financial freedom by participating in DeFi early on.' These astonishing cases undoubtedly ignite the wealth dreams of countless people, filling them with infinite fantasies about 'making 10 million in the cryptocurrency world.' However, when we calm down and think, is this 10 million truly easily attainable wealth, or is it a hidden trap? Is it really so easy to make 10 million in the cryptocurrency world? Or, perhaps the real difficulty lies in other aspects we often overlook?
Examples of making money in the cryptocurrency world: The fine line between heaven and hell
The charm of the cryptocurrency world lies in its enormous potential for wealth creation, but its risks are equally daunting. The fates of countless individuals are rewritten here, some soaring to great heights, while others fall into the abyss.
Successful cases: Models of financial freedom
Successful cases in the cryptocurrency world are often revered as models, becoming examples for countless people to pursue.
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'Bitcoin Jesus' Roger Ver: The foresight of early positioning Roger Ver is a name well-known in the cryptocurrency world. He gained fame for his early large-scale purchases of Bitcoin and active promotion, earning him the title of 'Bitcoin Jesus.' Back when Bitcoin was priced at dozens or even single digits of dollars, Roger Ver invested heavily in Bitcoin, leveraging his foresight. As Bitcoin's price continued to rise, his wealth grew geometrically, transforming from an early investor into a billionaire. His story perfectly illustrates the enormous returns from early positioning and long-term holding.
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Zhao Changpeng and Binance: From a tech geek to an industry giant Zhao Changpeng (CZ) is a legendary figure who transformed Binance from a small exchange into the world's largest cryptocurrency trading platform. He initially ventured into traditional finance but was quickly captivated by Bitcoin. In 2017, he founded Binance and, with his deep understanding of the cryptocurrency industry and efficient execution, propelled Binance to the pinnacle of the industry in just a few years. The success of Binance not only brought him astronomical wealth but also profoundly changed the landscape of the global cryptocurrency market. His story showcases the enormous potential of digging deep into the cryptocurrency world and seizing industry development opportunities.
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The Wealth Myth of DeFi and NFTs: The Explosion of Wealth in New Fields In recent years, with the rise of DeFi (Decentralized Finance) and NFTs (Non-fungible Tokens), new wealth myths have emerged. For example, some early investors participating in DeFi liquidity mining have accumulated substantial wealth in a short time due to high APY (Annual Percentage Yield). In the NFT market, the prices of certain digital artworks and avatar projects (such as CryptoPunks, Bored Ape Yacht Club) have skyrocketed, allowing perceptive collectors and artists to make a fortune. These cases indicate that innovation in the cryptocurrency world is endless, and new opportunities always arise alongside new technologies and applications.
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Failure cases: The tragedy of losing everything
In stark contrast to successful cases are the countless failures in the cryptocurrency world, whose stories warn investors of the enormous risks of blindly following the crowd.
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A couple's tragic story of losing everything in cryptocurrency trading: This is a heartbreaking tragedy. A young couple, attracted by the myths of wealth in the cryptocurrency world, invested their family savings and even borrowed money to trade cryptocurrencies. However, amidst extreme market fluctuations, they not only lost all their principal but also incurred huge debts. Faced with despair, they made a horrific decision—murdering their daughter before committing suicide together. This case starkly reveals the devastating consequences of failed cryptocurrency trading, as well as the tragedies that greed and a gambler's mindset can lead to.
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A young programmer named Xiao Li lost the down payment by trading cryptocurrencies Xiao Li, a young programmer born in the 90s, accumulated a down payment after working for several years due to his technical abilities and sensitivity to emerging things. However, after seeing friends making money in the cryptocurrency world, he couldn't suppress his inner impulse and invested his down payment into cryptocurrencies. He thought he could leverage his intelligence to thrive in the cryptocurrency world and quickly achieve financial freedom. However, the cruelty of the market far exceeded his expectations. After several wrong judgments and chasing prices, his down payment ultimately vanished. This case warns us that even among high-IQ individuals, facing the enormous temptation of the cryptocurrency world can result in heavy losses due to a lack of experience and rational judgment.
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The traps of 'meme coins' and 'air coins': The cruel reality of losing everything overnight In the cryptocurrency world, various 'meme coins' and 'air coins' are emerging. These projects often lack real value, relying solely on market sentiment and promotional hype. Many investors, tempted by high returns, invest funds into these projects, hoping to 'get rich overnight.' However, most meme coins and air coins eventually go to zero, leaving investors with nothing. These cases demonstrate that in cryptocurrency investment, the choice of project is crucial; blindly pursuing high returns while ignoring project fundamentals often leads to painful lessons.
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Difficulty analysis of earning 10 million: The accumulation of multidimensional challenges
Making 10 million is not an easy task in any field, and in the cryptocurrency world, it is a multifaceted challenge.
Market volatility: The risks and opportunities of a double-edged sword
One of the biggest characteristics of the cryptocurrency world is its extreme price volatility.
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Frequent large fluctuations in the short term: The prices of mainstream cryptocurrencies like Bitcoin often fluctuate by 20%, 30%, or even more within a short period. This high volatility presents opportunities for quick profits but also carries the risk of significant losses. For most investors, it is challenging to accurately grasp this volatility, selling at the peak and buying at the lowest point.
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The risks behind high volatility: Frequent price fluctuations mean that investors may lose a significant amount of principal in a short time, even face liquidation risks (especially when using leverage). Additionally, such volatility easily triggers emotional fluctuations in investors, leading to irrational actions and further exacerbating losses.
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Investment principal perspective: The challenges of original accumulation
The amount of principal directly determines the required rate of return and time to achieve the goal of 10 million.
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The dilemma of starting with a small principal: Suppose you only have 100 RMB as your principal and want to earn 10 million; this means you need to multiply your principal by 100,000 times. Even if you are lucky enough to find a coin that increases by 100 times, you would still need to find another that increases by 1,000 times, which is nearly impossible. Achieving a big goal with a small principal requires not only extreme luck but also a long wait and countless successful investments. This means you must accurately seize every opportunity for a price surge while avoiding any significant losses.
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The advantages and challenges of large capital: If you have 1 million or even 10 million in capital, achieving the goal of 10 million seems within reach. However, managing and controlling risks with large amounts of capital becomes more challenging. When your capital reaches a certain level, even a 20% drop means a loss of millions, which creates immense psychological pressure on investors. Additionally, moving large amounts of capital in and out of low market cap coins may impact coin prices and even lead to liquidity issues. Moreover, challenges such as diversifying investments, managing multi-chain assets, and preventing hacking attacks are significant for large investors.
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Investment strategy aspects: Ever-changing choices and traps
Investment strategies in the cryptocurrency world are diverse, each with its advantages and disadvantages, along with different risks.
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Long-term holding of mainstream coins (HODL): Patience and risk coexist Advantages: Relatively simple, suitable for beginners, theoretically lower risk than speculating on altcoins. If high-quality mainstream coins like Bitcoin and Ethereum are chosen, substantial returns are expected in the long run. Challenges:
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Long waits: Even mainstream coins do not see their prices rise smoothly and may go through long bear markets and consolidation periods, requiring immense patience.
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The impact of price volatility: Even with long-term holding, the extreme volatility of coin prices can greatly impact investors' psychology, with many choosing to 'cut losses' after experiencing significant declines.
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Selection of quality assets: Not all mainstream coins can sustain price increases, requiring a deep understanding of the project's fundamentals to avoid choosing obsolete coins.
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Investing in altcoins: The gamble of high returns and high risks Advantages: A few successful altcoins can indeed bring astonishing returns of dozens or even hundreds of times, making them highly attractive. Challenges:
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The project failure rate is extremely high: Most altcoin projects fail, and many are fraudulent (exit scams, Rug Pulls), putting investors at risk of total loss.
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Information asymmetry: Most altcoin information is opaque, making it difficult for ordinary investors to obtain real project progress and team information.
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Difficulty in identifying quality projects: Among tens of thousands of altcoins, identifying a few promising quality projects requires strong expertise, keen market insight, and some luck.
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Participating in emerging fields (DeFi, NFT, GameFi, Web3, etc.): Opportunities and unknown challenges Advantages: Emerging fields often represent the future direction of industry development; if early opportunities are seized, the returns can be very high. Challenges:
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Risks of smart contract vulnerabilities: DeFi projects rely on smart contracts, which may have vulnerabilities that lead to theft or loss of funds.
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Low market recognition: Many emerging projects are still in their early stages, and the market's recognition of their value is low, with poor liquidity, potentially facing risks of project stagnation or failure.
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The high learning cost of barriers: Emerging fields often involve complex technologies and concepts, requiring ordinary investors to invest a significant amount of time learning to understand and participate.
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Regulatory uncertainty: Many emerging fields are still in periods lacking regulation, and future policy changes may have a significant impact on project development.
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Contract and leverage trading: The temptation of amplifying returns and the abyss of liquidation Advantages: Contract and leverage trading can amplify investors' returns, achieving high returns in a short time. Challenges:
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The probability of liquidation is extremely high: Leverage is a double-edged sword; it amplifies gains while also magnifying risks. In a highly volatile market, even a slight price fluctuation can lead to liquidation, resulting in total loss for investors.
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Severe emotional impact: Leverage trading is highly stimulating and can easily trigger investors' greed and fear, leading to frequent trading and irrational decisions.
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Technical barriers: Contract trading involves complex trading rules, capital management, and risk control, requiring investors to have high technical and psychological qualities.
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Market manipulation: The contract market is more susceptible to manipulation by large players or institutions, making ordinary retail investors easy targets for 'being harvested.'
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A true analysis of difficulties: Overcoming human weaknesses and maintaining rationality
As the title suggests, making 10 million in the cryptocurrency world is not truly difficult in finding a hundredfold coin or catching a market trend, but rather overcoming human weaknesses and maintaining rationality.
Greed: The endless cycle of chasing highs and cutting losses
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Chasing highs: When seeing a coin's price rise rapidly, many investors develop 'FOMO' (Fear of Missing Out) psychology, fearing missing out on profit opportunities and blindly chasing highs. However, often after they enter the market at high prices, the market begins to correct, leading to losses.
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No stop-loss: When investments incur losses, greed may lead to fantasies, preventing timely stop-loss actions and hoping for price rebounds. The result is often a growing loss, even leading to total loss.
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Dissatisfaction: Even after earning substantial profits, greed can lead to dissatisfaction, constantly wanting to earn more, thus missing the best selling opportunity and ultimately giving back profits or even turning a profit into a loss.
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Fear: Self-destruction of cutting losses
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Cutting losses: When the price of a coin significantly drops, fear can take over, causing investors to worry about further losses, leading them to choose to 'cut losses' at low prices. However, the market often rebounds after such cut losses, causing investors to miss the subsequent uptrend.
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Missing opportunities: In a bear market, the market is filled with despair, and most people are shrouded in fear, unwilling to enter the market. However, bear markets are often the best time to accumulate cheap chips; only by overcoming fear can one achieve substantial returns in future bull markets.
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Blindly following the crowd: Driven by fear, some investors blindly trust rumors, panic sell, or follow the herd to buy certain 'safe-haven' assets, but this often backfires.
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Maintain rationality: The loss of clarity due to information overload and temptation
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A vortex of complex information: The sheer volume of information in the cryptocurrency world is enormous and updates rapidly, filled with various indistinguishable true and false news, insider revelations, technical analyses, emotional manipulation, etc. In such a flood of information, maintaining a clear mind, discerning the truth of information, and extracting valuable insights is a huge challenge.
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The temptation of wealth fantasies: The myths of getting rich in the cryptocurrency world constantly stimulate people's nerves, making it easy to develop fantasies of overnight wealth and thus overlook potential risks. This fantasy can lead to irrational decisions, such as investing all savings in a high-risk project or blindly using high leverage.
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Lack of independent thinking: Many investors lack the ability to think independently and are easily influenced by others' opinions, community emotions, and recommendations from KOLs (Key Opinion Leaders), leading to herd-like investment decisions. When market sentiment is high, they chase prices; when market sentiment is low, they panic sell.
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Other human weaknesses: Patience, discipline, and contrarian thinking
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Lack of patience: Investing in the cryptocurrency world requires immense patience, especially during bear markets or consolidation periods. Many investors lack patience, unable to hold quality assets for the long term, always wanting to profit quickly through frequent trading, but frequent trading often incurs higher transaction costs and greater loss risks.
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Lack of discipline: Successful investors often have strict investment discipline, such as setting profit-taking and stop-loss points and adhering to them rigorously. Most investors lack discipline, engage in emotional trading, resulting in missed opportunities or expanded losses.
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The difficulty of contrarian thinking: In the market, successful investors often think independently and even operate in reverse, being greedy when others are fearful and fearful when others are greedy. However, this contradicts the human instinct for self-preservation, making it very challenging to achieve.
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Risk warnings and suggestions: Proceed cautiously amid opportunities and risks
Investing in cryptocurrencies is filled with opportunities but also carries significant risks. While pursuing wealth dreams, investors must clearly recognize these risks and take appropriate measures to protect themselves.
The eight major risks in the cryptocurrency world
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Market volatility risks: Cryptocurrency prices are highly volatile and may fluctuate significantly in a short time, leading to substantial reductions in investors' assets.
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Regulatory policy risks: The regulatory policies regarding cryptocurrencies are still unclear worldwide, and future policy changes may have a significant impact on the market, even leading to the prohibition of certain coins or trading platforms.
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Technical risks: The underlying technologies of cryptocurrencies (such as blockchain and smart contracts) may have vulnerabilities, leading to asset theft or system crashes. For example, vulnerabilities in smart contracts could result in attacks on DeFi protocols, leading to the theft of user funds.
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Project risks: Many cryptocurrency projects lack practical application scenarios, or the team's technical capability is insufficient, with slow project progress, and may even involve fraudulent actions like project exit scams (Rug Pull), leading to total loss for investors.
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Liquidity risks: Some low market cap coins or non-popular NFT projects may face liquidity shortages, making it difficult for investors to buy or sell quickly when needed or to sell only at lower prices.
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Security risks: Hacking attacks on exchanges, theft of personal wallets, loss of private keys, and other security incidents occur frequently, which may lead to the theft of investors' assets.
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Macroeconomic risks: Global macroeconomic conditions, geopolitical conflicts, inflation, and other factors may impact the cryptocurrency market.
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Psychological and emotional risks: The market's extreme fluctuations easily trigger investors' greed and fear, leading to irrational decisions and resulting in losses.
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Five major suggestions for rational investment
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Establish a clear investment plan and goals: Before investing, clarify your investment objectives (e.g., how much to earn and for what purpose), and develop a reasonable investment plan based on your risk tolerance. Avoid blindly pursuing high returns; invest according to your capacity.
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Diversify investments to reduce risks: Do not put all eggs in one basket. Diversifying investments across different types of cryptocurrencies (such as mainstream coins like Bitcoin and Ethereum, as well as a small number of carefully researched quality altcoins) or different fields (DeFi, NFTs, etc.) can effectively reduce risks from any single project.
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Continuous learning to improve understanding: The cryptocurrency world is rapidly evolving, with new concepts and technologies emerging constantly. Investors need to maintain a learning attitude, stay informed about cutting-edge developments in the industry, conduct in-depth studies of project fundamentals, and enhance their understanding to avoid blindly following trends.
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Approach leverage and contract trading with caution: Leverage and contract trading can amplify returns but also magnify risks. For ordinary investors, it is not advisable to easily try high-leverage trading, let alone invest all funds in it. Even if you try, start with a small amount of capital and strictly control risks.
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Manage emotions well and avoid irrational actions: Market fluctuations are the norm, and investors need to cultivate a good mindset and manage their emotions. Set profit-taking and stop-loss points and adhere to them strictly, avoiding blindly chasing highs when market sentiment is euphoric and panic selling when market sentiment is fearful. Remember, the market amplifies human nature; those who can control their emotions can go further in the market.
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Conclusion: The test of wealth and human nature
Making 10 million in the cryptocurrency world is undoubtedly a goal many dream of. It is not impossible to achieve, but it is certainly not easy and cannot be accomplished casually. The successful cases widely praised by the media and communities are often the minority, behind which lie countless lessons of failure.
As we have deeply analyzed, the true difficulty in accumulating significant wealth in the cryptocurrency world is not the technical complexities or barriers to obtaining information but the ultimate test of human nature. Greed, fear, blindness, conformity… these weaknesses rooted deep within us are infinitely magnified in the enticing and volatile environment of the cryptocurrency world. Only those who can overcome these weaknesses and consistently maintain rationality, patience, discipline, and independent thinking have the chance to navigate this ocean filled with opportunities and traps towards the shores of wealth.
Therefore, for everyone who yearns for wealth in the cryptocurrency world, we must constantly remind ourselves: Invest cautiously, recognize risks, and do not overly fantasize about getting rich overnight. Real wealth often comes from deep understanding, firm belief, and a profound understanding of and control over human nature. Before stepping into this magical world, ask yourself if you are prepared to face the deepest weaknesses within yourself?
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