The current crypto world is no longer the same as it was before 2021.
Since the ETF was approved, the crypto world has become a realm of professional institutions, a world of smart people, a world of top wisdom.
Because they are all joining in, in the previous bull market, you could buy any coin, and today you buy, and the next morning you check and it has doubled. Now, when you buy, it drops today; when you sell, it immediately rises; when you buy again, it drops immediately. If you dare to average down, you’ll get stuck another 20 points.
This is when quantitative trading institutions have entered, and your money is permanently lost. Once these institutions get the money, they exchange it for Bitcoin or cash out.
They won’t be doing any long-term holding or waiting for a bull market; they are just harvesting endlessly whenever there’s an opportunity, which is why liquidity is constantly being consumed by them.
Also, the current pool is too fast, there are too many coins, and every kind of investor is buying 100U, spreading out their assets.
For a coin to rise, there must be capital piling in. Now with so many coins coming out every day, liquidity is constantly being drawn out. To put it bluntly, it’s like exchanging air for your U. Once you exchange your U for air, trying to get back U means you can only do so at a discount, with a different price every day. They earn U but won’t reinvest in the market to increase liquidity. They will definitely continue to cash out U to buy financial products. So you are just a small retail investor, and the only thing you can see is the K-line that everyone can see. You have no other advantages. Moreover, the news you see is basically what they’ve already set up before releasing it. Even the big leaders are using cheats for trading, so how can we small investors compete with them?
They know our psychology too well: greed, wanting to chase rises, wanting to hold on tightly.
They are endlessly washing the market to counter our firm hold. When we start using swings, they will use trends to catch you off guard or trap you.
The only two fair currencies in the crypto world are BTC and ETH. When I say fair, I mean that operating with these two requires a huge amount of capital and high costs; it definitely isn't something one person can handle. You basically don’t need to look at others; if there’s no big player, buying it is useless. Or the big player has already bought it before you, pulled it up, and when you see it and take a bite, you end up cutting your tongue off.
It’s all about human nature. You think it’s about technology, but in reality, they have researched retail investors’ behavioral psychology extremely thoroughly.
Whatever news you want to hear, the market will have corresponding news to support it, resulting in you getting on board and handing over your chips.
Think about the previous crypto world; in a bull market, as long as you bought the chips, you didn’t need to keep them warm; it would rise and make you excited.
After you sell, it goes up again. When you chase after it, it will rise again, which indicates that there is not much quantitative trading cutting you off; the upward force is consistent and unending. In today’s crypto world, all kinds of speculative funds and institutions are like sickles.
If you want to make money inside, you can only follow their trends, take a bite and leave, don’t eat the meat in their mouths.
I’m done writing. I wish you wealth in the crypto world. I am a crypto massage therapist, an old investor mainly focused on arbitrage and holding coins.
If you are a newbie wanting to engage deeply in the crypto world and want to get started quickly, you can follow Yi Yan.
