Every day, you can hear about someone getting rich in the crypto space, or someone else investing in a meme coin. It seems that everyone has their own method. Successful people can certainly speak freely, and of course, these methods may not necessarily be disclosed to you. However, it's worth reflecting on whether these methods are 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 ordinary investors with a few relatively low-threshold and operable ways to make money through systematic sorting.
1. Long-Term Holding (HODL): Time Compounding
Long-term holding is an investment strategy that exchanges time for value, especially suitable for volatile markets like Bitcoin. If you don't grasp the cyclical patterns well, it's easy to get left behind in the middle of a bull market and cut losses at the bottom of a bear market. As mentioned in previous articles (whether to buy more as prices drop or cut losses), the difference between long-term and short-term investing 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. As long as you keep holding Bitcoin, you're doing the right thing over the long term, and the compounding effect will take you to great heights.
The principle is simple: Bitcoin has a limited total supply, which means it's a competition for existing stock. If you have one more, it means someone else has one less. If you become the mayor, I can't be the mayor. If I’m the best-looking person in crypto, then you certainly aren't. When something is desired by everyone, and its total supply is limited, while the world's money is being printed at a massive speed, it creates a breeding ground for Bitcoin's long-term appreciation. Additionally, the halving pressure from miners occurs every four years, which will also decrease. Now, many large mining sites in North America do not sell the coins they mine, creating a market where there are many buyers and few sellers. What else can happen except continuous price increases?
As long as you choose mainstream coins with long-term growth potential, like BTC, ignore short-term fluctuations, and store them in a cold wallet, long-term holders require almost no complicated operations, and can rely on time to achieve exaggerated annual returns.
2. Dollar-Cost Averaging: Diversifying Risk
Dollar-Cost Averaging is a set of operating techniques particularly suitable for beginners. Its benefits are twofold: first, it can help you maintain a calm mindset. Even if the market starts to plummet, since you still have a large portion of your money uninvested, you may feel inexplicably excited because you can buy more with your remaining funds. Second, you are guaranteed to have some capital invested at the market's lowest point, which means you will definitely have positions at the bottom. This position in a bull market will definitely yield a certain 3-5 times return. Take this year's poor performance of Ethereum as an example: you currently have at least around 100% profit, which is much less painful than when the coin price was 1500.
3. Unlimited Grid Trading
Unlimited grid trading is a grid strategy over a wide range, for example, between 30,000 and 300,000 for Bitcoin. If it rises by 100, you sell; if it drops by 100, you buy, capturing all the fluctuations while ignoring the trend. This is similar to a market-making strategy, providing liquidity to the market without stop-loss or take-profit; you keep running within this range. As long as the market fluctuates, there is money to be made, and there’s no psychological burden. After 4 years, a return of 100% is basically stable; the key is one word: worry-free. You won't be tormented by market conditions.
4. POW Mining:
Of course, I'm not talking about Bitcoin mining, which is now monopolized by consortiums and has basically nothing to do with retail investors. Even if you have a low electricity price, it takes 48-60 months to break even, and by the time you do, the machine has likely already become obsolete. However, there is now a magical coin that might be our opportunity, which can basically achieve a 400% return in 4 years. We know there is a saying: making money in the crypto space is easy, but earning coins is harder than eating shit; that's the point. We often hear about someone making ten times their money in Bitcoin, but we have never heard of anyone increasing their coins from 100 to 1000 in a full cycle. To maintain 100 coins without loss is already a sign of a very skilled player.
The above describes four lazy methods for making money in the crypto space. They are simple and require no high intelligence or significant time investment. I believe the most important thing is that these methods can help you maintain a more peaceful mindset. Instead of being tormented by the extremes of market fluctuations every day, you can spend 80% of your life in happiness. If you keep staring at the market, you will spend 80% of your time in pain.
I hope these methods can provide you with clear action guidelines.