Not long ago, I wrote an article about how ordinary people can turn their lives around through the crypto world.
In that question, I have briefly derived it through mathematical theory.
If one can do it in the crypto world
to only hold Bitcoin, excluding the players who got in at the very early stages, based on the time ordinary people can understand, Bitcoin has gone through 4 cycles since 2016 to today.
Each cycle basically sees a 3-6 times increase. Since one cannot buy at the absolute bottom or sell at the absolute top, let’s just estimate based on a 4 times increase. 5000 can turn into: 1.28 million over 4 cycles.
1.28 million is not a lot in the crypto world; at least it's considered a starting capital. You only need to patiently go through 1-2 more cycles to reach around 20 million. From the above formula, can we see that 5000 is also very important in the crypto world?
From the above, it can be seen that in the crypto world, the most important question is not how much capital you have; so what should it be?
There is a very simple methodology for analyzing problems, which is to keep asking yourself. What is important in this matter? Compared to this, what is more important? Keep exhausting until you reach the most important point; knowing this makes it simple, just focus on this and work hard.
Then let’s see what factors are more important than capital in the crypto world.
1. Do you believe Bitcoin is a Ponzi scheme? If you don't believe it, what is the basis for your disbelief? Have you found the core argument in this?
In the crypto world, cognition is more important than capital. If you do not recognize that Bitcoin has value and consider it a scam, what basis do you have to hold onto it? If you can't hold it, how can you apply the above mathematical formula? Basically, there is no opportunity.
2. Can you resist temptation? Can you avoid reaching out when seeing hundreds or tens of times returns from altcoins? Can you resist the urge when seeing the contract charts shared by KOLs in the crypto world?
In the crypto world, understanding yourself is more important than cognition; do you really know yourself? Can you have an objective dialogue with yourself? Can you understand yourself as an object of knowledge? This is also known as 'meta-understanding.'
In the past investment process, have you conducted a deep review and corrected your behavior based on the results? Were your subsequent actions wrong, or did they gradually become correct? If they are still wrong, it means that the review was not thorough.
If you don't even know why you want to invest or to what extent you can discipline yourself in investment operations, then investing is merely gambling on luck. You should quickly leave the investment circle and not waste your hard-earned money. If you only think about making money and cannot foresee how to lose it, you will definitely lose money.
3. Do you know how to ensure the safety of your funds?
In the crypto world, what is more important than capital, cognition, and self-understanding? It must be how to ensure the safety of funds. If the funds are not safe, no matter how hard you work or how skilled you are, it is equivalent to working for the platform or others. If you don’t know how to enter and exit safely, it is equivalent to throwing your money into a black hole.
So how can funds be safe? Keep your coins in your cold wallet. Research the real cases of crypto platforms running away; there are many, big and small, and it’s easy to find. Additionally, here’s a tutorial on creating a cold wallet: Bitcoin cold wallet creation tutorial.
How to enter and exit safely: U-$-R, you need to understand this basic logic and pave the way.
After looking at the content above, is this thought chain progressive, is it simplistic? Good luck!
