The underlying logic of making money in the cryptocurrency market

What really makes money is not luck, but the correct methods + persistent logic.

Many people trade cryptocurrencies based on feelings and impulses, making some money when luck is on their side, only to lose it back later. To make money in the long term, you must have a set of underlying logic. For example, I always advise large investors to operate like this:

Core advice: Dollar-cost averaging in BTC + Dollar-cost averaging in a small portion of quality assets

Many people think dollar-cost averaging is just "buying in batches" to avoid buying at the highest point. In fact, the real benefit of dollar-cost averaging is —

It can give you peace of mind, allowing you to truly hold onto this coin.

Have you ever had this experience?

You invested all at once in ETH or DOGE, only to be stuck for a year, and your mindset collapsed;

After finally breaking even, you rushed to sell, even cutting losses before the price went up;

Looking back, you realize you sold too early, and the biggest regret is falling short just before dawn.

Why can't you hold on? Because you bought in too long without moving, making your brain feel "the holding pressure is too great."

But dollar-cost averaging is different:

Every time you invest, you will "refresh your holding time," making your brain think you just "bought it."

This way, you won't be in a rush to sell, and you can hold on. This is the greatest effect of dollar-cost averaging — it can "trick" your brain.

Making money with small coins relies on information advantage, not random guessing.

Recently, I've been shorting some small coins successfully. This is because I have an advantage — information advantage.

For example, the major KOLs on Twitter have their own groups, possess first-hand information, and know when to hype which coin. In contrast, ordinary people mostly access second-hand or even third-hand information, which has little winning chance.

So what do I do? I found a strategy:

My combination strategy: Go long on BTC + Short small coins.

Why do this?

If the bull market continues, BTC rises, and small coins rise more, I'll lose less;

If BTC falls, small coins usually fall harder, and I'll make money;

If BTC consolidates, small coins slowly drop, I'm still making profit;

If BTC rises while small coins don’t or even fall, I profit again.

In summary:

This strategy allows me to profit in most market conditions, keeping losses within a small range.

If you want to hold onto coins, use dollar-cost averaging and reduce anxiety with a "refreshing feeling."

If you want to earn money from information gaps, design a strategy instead of making random bets without certainty.

In the long run, only those who are steady + have clear logic can truly make money.