The current crypto market has become a "meat grinder," making it difficult for retail investors to profit, mainly due to the lack of a continuous upward trend. In contrast, the A-shares market is in a bull market, with a clear trend and low volatility, providing retail investors with more reaction time. The high volatility and 24-hour trading in the crypto market make it easy for retail investors to get trapped, especially in unpredictable market conditions. Although theoretically, one can profit from short-selling in a bear market, the high capital costs make it difficult for retail investors to gain profits, leading to a market designed to be unfavorable to them. Overall, for retail investors, operating with a heavy position in a clear upward trend is the key to profitability.
The cryptocurrency space has become a highly dangerous meat grinder. When altcoins no longer experience collective surges of dozens of times, altcoins become a big pit.
If you can't make money in the cryptocurrency space, 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 continuous, retail investors have no way to make money because there isn't enough time to think and react.
Currently, only A-shares are in a bull market; other cryptocurrency and U.S. stock markets are hopeless. Look at the impressive cryptocurrency BNB, which rose from a low of 829 on August 26 to a high of 907 on September 11, with a total rise of only 9% over 16 days.
Half a month is not as good as a single-day rise in science and technology innovation board value stocks; the cryptocurrency and U.S. stock markets are all hopeless, only the A-shares can continue to rise, and retail investors can only make money in a continuous rising trend.
The A-shares have indeed entered a sustained mid-bull market, and its characteristics are usually strong trends, with volatility smaller compared to cryptocurrencies. This indeed gives investors more reaction time, so they do not have to worry about around-the-clock market surges and crashes. Under the background of a policy market, once a trend is formed, the continuation is strong.
The current trend in the cryptocurrency market is full of twists and turns, making it impossible to operate with full positions, while the A-shares are currently in the early stage of a bull market. Only in an environment where the upward trend lasts as long as possible can retail investors make money, because there is enough time for them to think and react. The cryptocurrency market rises for a few days followed by a crash, and retail investors are often trapped before they can react.
Currently, the A-shares provide ample thinking and time: the trend won’t complete in a day, retail investors have the opportunity to get in during pullbacks, and also have time to exit when the trend reverses, allowing for a higher margin of error.
Suitable for full or heavy positions: In a clear upward trend, daring to hold stocks and increase positions is key to maximizing profits.
Cryptocurrency market - 'twists and turns, ups and downs', 'a few days of rise followed by a crash'. The cryptocurrency market trades 24/7, is heavily influenced by global news and sentiment, and has volatility far exceeding traditional stock markets.
For retail investors with low risk tolerance, slow reactions, and those who cannot keep a constant watch on the market, it is indeed a 'meat grinder', and they can easily get trapped before they realize it.
Acting with heavy positions in a high-certainty upward trend - is the only rule for retail investors to make money.
The bear market in the cryptocurrency market is actually a bull market for shorting, but with retail investors collectively shorting, it leads to extremely high funding costs, with fees collected every hour, and a total of 2% of funds collected in an hour, resulting in a loss of half the principal in one day.
In a bear market, theoretically shorting can make money, but when the market forms a consensus among retail investors to short, whales and institutions can harvest funding fees or directly push shorts, leading to short squeezes.
High funding fees can make it difficult for even those who are right about the direction to profit, or even incur losses. This is almost a 'designed trap' for retail investors.
In the cryptocurrency space, among tens of thousands of coins, only a few can break historical highs in the second half of this year’s bull market, and most of the coins that break historical highs are false breakouts, not true breakouts.
Tens of thousands of coins, and it's hard to find one that rises by dozens of times; often you only see it when the rise is nearing its end, and large positions dare not buy, only able to buy a small part, and the rise is already minimal, a tail-end market.
It is difficult for large amounts of funds in the cryptocurrency space to withdraw safely. If it weren't for this threshold restriction, who knows how much money would have escaped from the cryptocurrency space, but however much can escape is what it is.
I am (Brother Jun Crypto), with 7 years of deep cultivation in the cryptocurrency space. Short-term speculation reveals the truth, and medium to long-term layouts have principles. Accurately capturing the best trading opportunities and providing you with news to empower your investment decisions. Choose the right direction, find the right rhythm, and here you have the professional perspective you need.$ETH
