The current cryptocurrency market has become a "meat grinder", making it difficult for retail investors to profit, primarily due to the lack of a continuous upward trend. In contrast, the A-share market is in a bull market, with a clear trend and small fluctuations, providing retail investors with more reaction time. The high volatility and 24-hour trading in the cryptocurrency market make it easy for retail investors to get trapped, especially in erratic market conditions. Although theoretically, profits can be made by short selling in a bear market, the high capital costs make it difficult for retail investors to profit, leading to a market design that is unfavorable to them. Overall, for retail investors, heavily investing in a clear upward trend is the key to profitability.
The cryptocurrency market has become a highly efficient meat grinder. When altcoins no longer experience collective rises of dozens of times, altcoins become a big pit.
If you can't make money in the cryptocurrency market, it's not your problem, but the problem of the trend. Retail investors can only make money in a continuous upward trend. If a trend cannot be sustained, retail investors simply cannot profit because there is not enough time to think and react.
Currently, only the A-share market is in a bull market; other cryptocurrency markets and the US stock market have no hope. Look at the impressive cryptocurrency BNB, which rose from a low of 829 on August 26 to a high of 907 on September 11, totaling a 9% increase over 16 days.
In half a month, the gain is not as good as that of a value stock in the Sci-Tech Innovation Board within a day. The cryptocurrency and US stock markets have no hope; only the A-share market can continue to rise, and retail investors can only make money in a continuous upward trend.
The A-share market has indeed entered a sustained mid-stage bull market, characterized by strong trends and smaller volatility compared to cryptocurrency. This does give investors more time to react, without worrying about the 24/7 market's extreme fluctuations. In a policy-driven market, once a trend is established, it tends to be sustained.
The current trend in the cryptocurrency market is full of twists and turns, making it impossible to operate with full positions. Meanwhile, the A-share market is currently in the early stages of a bull market. Only in an environment where the upward trend is sustained for as long as possible can retail investors profit, as it allows them enough time to think and escape. In the cryptocurrency market, a rise of a few days is followed by a sharp drop, and retail investors often get trapped before they realize what happened.
Currently, the A-share market provides ample time for thinking: trends do not complete in a day. Retail investors have the opportunity to enter during pullbacks and have time to exit when the trend reverses, allowing for a higher margin of error.
Suitable for full or heavy position operations: In a clear upward trend, daring to hold stocks and daring to increase positions is key to maximizing profits.
The cryptocurrency market is 'twists and turns, back and forth', 'a few days of rise is followed by a sharp drop'. The cryptocurrency market trades 24/7 and is greatly influenced by global news and emotions, with volatility far exceeding that of traditional stock markets.
This is indeed a 'meat grinder' for investors with low risk tolerance, slow reactions, and those who cannot constantly monitor the market, as it is easy to get trapped before realizing it.
Operating with a heavy position in a highly certain upward trend is the only rule for retail investors to make money.
The bear market in cryptocurrency is originally a bull market for shorting, but the collective shorting by retail investors results in extremely high funding costs, with fees collected every hour, and in one hour, a total of 2% of the capital is collected, leading to a loss of half of the principal in just one day.
In a bear market, theoretically shorting can make money, but when the market forms a consensus among retail investors to short, the whales and institutions can pump the price to harvest funding fees or directly pressure shorts, leading to short liquidations.
High funding costs make it difficult for even those who have the correct direction to profit, and they may even incur losses. This is almost a 'designed trap' aimed at retail investors.
In the cryptocurrency market with tens of thousands of coins, only a few can break historical highs in the second half of this year. Most of these coins that break historical highs are false breakthroughs, not true ones.
Tens of thousands of cryptocurrencies, it's hard to find one that rises a dozen or dozens of times; often you only see the rise near the end, and with large positions, one dares not buy. Even if one buys, it can only be a small portion, and the increase is already minimal, resembling a fish tail market.
It is difficult for large funds in the cryptocurrency market to withdraw safely. If it weren't for this threshold restriction, who knows how much capital would have fled the cryptocurrency market, but whatever can escape is counted.
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