First, let me share my understanding of BTC. BTC is currently the most worthwhile asset to hold long-term in the world, without exception. Here are the reasons:
1. BTC is a mirror reflecting fiat currency. Since the dissolution of the Bretton Woods system and the decoupling of fiat currency from gold, fiat currency has begun its path of infinite overproduction. The elites use the power of currency issuance to plunder the labor of the middle and lower classes, and this is true for every country. However, BTC's total supply remains constant, fiat currency will only depreciate, and BTC will appreciate.
2. Building on point 1, after more than a decade of development, BTC has grown amidst countless scams and calls for its demise. Its price keeps rising, demand continues to grow, and with state and institutional involvement, the consensus is now strong enough. I can responsibly say that the possibility of BTC going to zero is now zero, and the crypto space will not perish.
3. Since its inception, BTC has never deceived anyone. Every peak in the bull market has been a new high. As long as you hold it long enough, you will reap substantial profits.
Now, let's talk about the mindset of coin holders. I've noticed the following characteristics among retail investors on Xiaohongshu:
1: Most people panic during pullbacks and FOMO at new highs.
2: They hold a basket of altcoins while looking down on BTC.
3. They follow news in the crypto space, such as whales transferring BTC to exchanges, ETF outflows, BTC strategic reserves, etc.
4. They trade contracts and look down on spot long-term investments.
All four of these points need to be avoided to have a chance to make money in the crypto space. In fact, making money in crypto is very easy; what’s important is the mindset. The correct approach is as follows:
1: Continuously DCA (Dollar Cost Average) buy at relatively low levels, and then continuously DCA sell at relatively high levels after about 4 years, without making any swings or trading contracts. Invest with spare cash. If you use leverage to borrow money for investment, you may not be able to withstand massive fluctuations, leading to wrong decisions. I once lost 400,000 in a day (forgot to take a screenshot), but it didn't affect my mindset. I still do what I need to do; even if it goes up, I don't act. Just use what seems like the dumbest investment method: hold without moving.
2. Don't panic or FOMO when reading the news. News is intentionally shown to you by institutions and whales. Do you think they will kindly let you know to run quickly at high prices and buy more at low prices? The crypto space is not a charity; they are here to make money off us.
3. Your BTC position must be adequate. Whether you have $1,000, $10,000, or $500,000, at least 50% should be allocated to BTC. For larger amounts, the allocation to BTC should be even more (I have a small amount but conservatively allocate 70% to BTC, 15% to Ethereum, and 15% to altcoins). Don't underestimate BTC; it has the strongest consensus and the most stable price. Altcoins may rise sharply in the short term, but they can also drop sharply, making it hard to hold a large position.
Finally, to summarize, everyone can allocate a portion of cryptocurrency; this is our only way to combat the ever-increasing prices. You don’t need skills to play in the crypto space, just the right mindset. Wall Street giants like Michael Saylor hold their investments without moving; why would you sell? Do you think your investment skills are superior to theirs? Making money is very simple; just do one thing well: hold without moving, hold without moving, hold without moving.#加密市场反弹 #以太坊ETF连续12周净流入 #币安HODLer空投TOWNS