First, let's state the conclusion: Most people enter the cryptocurrency market starting from losing money, but those who survive ultimately earn through cognitive arbitrage.
1. Entering the cryptocurrency market: The tuition phase
When I first entered, I was like most people, rushing into the market with a 'wealth freedom dream,' playing high leverage, chasing FOMO, and trusting KOLs' signals. What happened? My account shrank by 70%, and only then did I realize the market is counterintuitive. Those who can make money are not the big V’s who shout signals every day, but the market makers behind the scenes who 'create market movements.'
2. From being cut down to recognizing the essence of the market
Later, I got smarter and started digging deeper into the market's gameplay, discovering:
Short-term speculation relies on information asymmetry. Project parties, KOLs, and VCs have long joined forces, and ordinary people chasing highs are basically just taking over. Long-term investment is about understanding trends; the market is a cyclical game with core narratives (BTC halving, DeFi, GameFi, AI narratives, etc.) in each bull and bear cycle. However, those who outperform often are the ones who ambush at the bottom and run at the top. Trading cryptocurrencies is not like buying a lottery ticket; real profit comes from systematic trading, not from feelings and impulsive actions.
3. Truly starting to make money: Three core models
After struggling for a few years, I made money through the following three methods:
① Spot swing: Buy low and sell high, strictly execute the trading system.
Collect high-quality assets (BTC, ETH, mainstream leading projects) in a bear market, and gradually sell in batches at high positions in a bull market. Avoid greed that leads to profit withdrawal, never go ALL IN, manage positions reasonably, and control risks.
② New project dividends: Catching trends, early ambush
Participate in the early rounds of quality projects (airdrops, IDOs, pre-sales), pay attention to first-tier market dynamics, observe VC and institutional movements, study token economic models, and judge which projects truly have growth potential.
③ Options & Arbitrage: More advanced play
Low-risk arbitrage, such as price difference arbitrage between exchanges, brick-moving arbitrage using options to hedge risks, improving capital utilization to control leverage, avoiding contract liquidation, and achieving stable profits.
4. The underlying logic of making money in the cryptocurrency market
Looking back, those who can truly make money in the cryptocurrency market rely not on 'good luck' or 'betting on the right coin,' but on understanding, patience, and execution.
Understanding determines whether you can comprehend the market and not be driven by emotions in trading. Patience determines whether you can endure the bear market and ambush quality assets at low positions. Execution ability determines whether you can operate according to your trading plan, rather than FOMO-ing into the market or panic selling.
5. Conclusion: If you want to make money
Don't play high leverage, don't go ALL IN, and don't trust KOLs who shout signals every day. Study market cycles, follow narrative rotations, and allocate reasonably. Hold quality assets for the long term, rather than short-term gambling on junk projects. Always control your hands; patience is more important than anything.
The cryptocurrency market is a zero-sum game. Most people come in to donate money, and only those who understand risk management and have strategies can truly make money and survive until the end.
If you want to seize this round of the bull market, it’s definitely too late to learn and sell on the spot; it's best to have someone guide you quickly.
