Last week I had dinner with an old classmate. When his friend heard that I was doing relatively well in the crypto space, he regretfully said, “Last year I shorted mainstream coins, and my three million principal is now less than three hundred thousand!”
I joked, “If I had advised you to try with five hundred thousand back then, you would have thought I was being stingy, right?”
He laughed bitterly, “At that time, I was just thinking ‘if I miss this, I’ll lose out on a hundred million,’ how could I listen!”
I knew well that the lessons from the crypto space are hard to learn without personally experiencing a liquidation — even if we had known each other for a long time, he would likely still go all in.
He suddenly lowered his voice: “Is there a big whale watching the retail investors in this crypto space? As soon as I bought, it started to slide down, and as soon as I cut my losses, it shot up. It’s too strange!”
I poured him more tea: “The global market operates 24 hours, our positions are just a drop in the ocean. Feeling targeted is actually just a sign that new investors take their own operations too seriously.”
“How can I turn things around?” he asked anxiously.
“The most ironic thing about the crypto space is that the methods for making money are so simple that they seem unworthy of attention.” I said slowly, “The challenge isn’t finding patterns, it’s mastering your own psychological demons.
I’ve seen PhDs write quantitative strategies and lose everything, and I’ve seen a pancake vendor profit from dollar-cost averaging — the difference isn’t knowledge, but whether one can accept that ‘most of the time, doing nothing is better than random actions.’”
“What should I buy now?” he pressed.
“Bitcoin has breached a key moving average. Build your position in batches and set your stop-loss to hold steady.” I replied directly.
He was stunned: “Is it that simple?”
“It’s that simple.” I asked back, “But can you resist the urge to constantly check the market? Can you accept a 30% paper loss without wavering?”
He fell silent. In fact, many people in the crypto space are like this, always chasing hundred-fold altcoins, thinking that not studying the white paper means they aren’t putting in effort.
It’s like those who have never surfed think the technique is complex, while the experts know that the hardest part is staying calm in the waves.
After going through several rounds of bull and bear markets, I finally understood that the true essence of the crypto space lies in initial discipline — don’t be greedy, don’t be impatient, don’t act rashly.
If you feel helpless and confused in trading, and want to learn about crypto knowledge and cutting-edge information, feel free to follow me, and let’s avoid pitfalls together and proceed steadily.
