1. Investment strategy selection
In the cryptocurrency world, there is a question that I have been discussing with my friends: should we cast a wide net and use a small position to try to earn tens, hundreds, or even thousands of times the profit, or should we go all in and try to achieve miracles? Which of these two methods is more suitable for us?
2. Great Strength Leads to Miracles
1. Typical cases and results
I have several friends who do secondary investment, and they are typical representatives of "hard work brings miracles". Once they are optimistic about a certain coin, they will invest all their efforts and then wait for the harvest. For example, in the recent examples, coins like $, neiro, and $MOODENG, they have made a lot of money after investing heavily. However, there are also cases like investing heavily in $FLAVIA and the result is directly zero. So this method looks like gambling, if you win, you will make a lot of money, and if you lose, you will lose everything. And because it is operated on a decentralized exchange, not a centralized exchange, the probability of investing in the chain to zero is much greater than that in an exchange.
2. Operations under “certainty” opportunities
So, when a "certainty" opportunity appears, should we invest heavily or try with a small position? For example, when Trump came to power, everyone knew that this was good for cryptocurrencies, so some people bought $BTC heavily and got a 9.3% return at once. If you use a large enough leverage, you can rest for several months with this wave of profits. In addition, Trump's coming to power is also good for Musk, so some people bought $DOGE heavily. At the highest point yesterday, it rose by nearly 50% in one day, without using leverage, and this wave of profits can also make you relax for a while. For example, when $neiro was launched on Binance, its market value was below 30 million for about 15 minutes after it was launched. At this time, if you bought it heavily and held it until now, the profit can exceed 30 times. And when $MOODENG was launched on Binance Contract, you can buy it when the market value is 80 million. Even if you chase it a little later, buy it when it is 110 million-120 million, you can still make money. Many experts on the chain directly go all-in and make a profit.
3. The essence of “great strength brings about miracles”
From these situations, we can conclude that the reason for heavy investment such as "great effort to make miracles" is that people are very optimistic subjectively and think that this opportunity can be seized. If they hesitate and tangle, the opportunity will slip away. Moreover, for this type of investment, what is important is not how big the miracle of the return is, but stability. This is usually a relatively right-side opportunity, not blindly carried out at the beginning of the project. Just like Bitcoin, when it was 10, everyone was not optimistic, when it was 10,000, everyone started to enter the market, when it was 50,000, everyone was still entangled whether to enter or not, and when it reached 75,000, everyone entered the market at the speed of light. This is because the market situation and pattern have changed, and the deterministic opportunities are also different. Therefore, "great effort to make miracles" can actually be said to be "heavy position and follow the trend", but if you go all in too hard, it is not heavy position or creating miracles, it is "overexerting", and it is easy to lose all your money.
3. Cast a wide net and bet on high payouts
1. Typical players and their earnings
In various cryptocurrency groups, there are many "dog warriors" and "pvp juniors". They are the representatives of those who cast a wide net and bet on high losses. They pursue "excess returns". When they are lucky, they can earn hundreds, thousands or even tens of thousands of times, but when they are unlucky, it will be zero. Whether this method can make money depends on how wide your net is. Some group members can sit in front of the computer for 20 hours a day, and 19 hours of them are spent looking for opportunities. Each time, they may earn several times or dozens of times. It doesn't sound like much, maybe just a few dozen or a few hundred and run away, but they operate frequently.
2. Attractiveness and risks
This kind of play is very attractive to most people in the cryptocurrency circle. After all, the temptation of coins that can return 100x, 1,000x, or 10,000x is too great. For example, the story of someone investing 1,000 yuan in pump.fun and finally selling the coin for 800 million is too tempting, and it has attracted many "adventurers" to enter the cryptocurrency circle. There are also contracts that can return 500-1,000 times, which are also considered high-risk and high-return types. Many people entered the cryptocurrency circle because they were attracted by coins that can return 100x, 1,000x, or 10,000x, but they found that the annualized 48% USDT investment was far from their expectations. And some people wonder if only on-chain mining can be considered a small warehouse betting on high odds? There are indeed fewer and fewer opportunities for high odds in the market now.
4. Different people have different amounts of money in their pockets, which leads to different styles
1. Differences in different return expectations
For most people, an annualized return of 48% is already exaggerated. But in the cryptocurrency world, most people look down on this return, because many of them enter the cryptocurrency world to "change their fate". If they only have 1,000 yuan of principal, an annualized return of 48% cannot change their fate. For a small number of people, an annualized return of 48% can meet their living needs, and even have a surplus. For a small number of people, an annualized return of 48% is too high a profit for them, higher than the profits of some special industries. This is because everyone has different amounts of funds, and their views on returns are different. For example, 500,000 is a heavy position or even the entire fortune for some people, but for others it may be just a light position, and it may be 5 million or 10 million for them to be considered a heavy position.
2. Differences between different investment options
Some people can earn excess profits by buying mainstream coins such as Bitcoin (BTC) and Solana (SOL), while some people are still not satisfied even if they buy coins that have increased 10,000 times and want to continue to make money. Therefore, whether to hold a light or heavy position often does not depend on the amount, but on the proportion of this amount in your pocket.
5. How to choose?
1. Risks and opportunities of the two strategies
From my observation and the experience of people around me, the poker group makes money quickly, but also loses money quickly. As for the Ogura Bogao, it may be possible to make money all the time if you catch a good opportunity, but the problem is that it is difficult to catch such an opportunity. Therefore, you need to have a relatively stable cash flow, whether it is group fees, consulting fees or salary income, these are like charging your investment "bullets". After all, only by staying at the poker table can you have the possibility of winning. However, some people think that you should not go to the poker table at all, because trial and error requires costs. You can't just go poker with nothing, right? High risk is accompanied by high returns, and that's how investment works.
(II) Investment Decision and Logic
Some people are not following the trend, but simply optimistic. But when you bet, you have to make sure whether there is an opportunity to make money. If you are not sure in your heart and cannot convince yourself, then the logic of this bet is very problematic. So, is it more profitable to buy in a small position when the currency value is small, such as buying 1% when the market value of $neiro is 1 million and selling it when it is 10 million, or to buy in a large position when the currency value is large, such as buying 1% when it is 100 million and selling it when it is 800 million? Everyone understands many principles, but they just don’t like to make decisions, or some people, although they predict correctly, are just "empty purchases", and they don’t use positions to feel the market like real traders. In the end, seeing that some group friends bought $MOODENG and some bought $neiro vigorously, they all made a lot of money, but I can only buy some dog coins in a small position, accounting for 1-3% of the chips, which is really a bit helpless.
3. Long-term style evolution
A friend mentioned that in the long run, many people may end up with a heavy position at a "high position". Because when the amount of funds increases, the opportunities to sell will become fewer and fewer, which means that only those who dare to hold a heavy position at a "high position" will have more and more such needs. This is also a trend of change in investment style as funds and the market change. When investing in the cryptocurrency circle, you really have to carefully choose a strategy that suits you and weigh the risks and benefits!
The market is back on the upside, and Ethereum is making up for the rise and the altcoin is about to explode, but we must also pay attention to the risks. Recently, we are preparing to ambush a coin that will explode 100 times.
The free benefits are still open, with spot trading as the main and contracts as the auxiliary. I have been calling on everyone to hold on to their chips and not get off the bus. If you want to get on the bus again after getting off the bus, you will chase high prices again!!!
