Today's blockchain and digital currencies are very much like the internet in 1997; there may be bubbles, but the prospects are immeasurable.

This field will certainly give birth to future BATs. What you truly need to do now is to integrate into the tide of the times; definitely don’t fall behind. The most cost-effective thing for a person is to live in the future. Make choices now based on future standards.

The digital currency field is still in a primitive and wild state, and one's level of understanding will determine their role in this area. You may write an unimaginable wealth legend, or you may be taken advantage of by others due to insufficient understanding. Rapidly improving your level of understanding is something you must do urgently.

The crypto market offers much higher returns than the stock market, but the risks are also greater. The chips in the crypto market are more concentrated, and financiers hold stronger control. Trading occurs 24/7 without limits or circuit breakers; waking up one day to find your account up by hundreds of thousands, and another day down by tens of thousands is not surprising at all. It’s not unusual for the currency you just bought to be halved in a couple of days. Therefore, entering this field requires a rational view of the risks involved and acting within your means.

Don’t keep staring at the market; it’s hard to make big money with short-term maneuvers, and it may affect your judgment of long-term value. As long as the value basis you established during position building remains, and the environmental conditions have not undergone significant changes, try to minimize the fuss.

Choosing to invest in cryptocurrencies with many believers is relatively safe. During overall market declines, such coins often experience smaller declines, as more people firmly hold them, giving confidence.

There are too many stories of getting rich quickly in the crypto world, but it's best to just listen; the first thing to do is to ensure your own survival.

Even in a super bull market, there are still many people losing money. Chasing highs and lows is a shortcut to losing money; you must avoid such practices as much as possible, especially if you adhere to the philosophy of value investing for the long term, which means you must avoid chasing high prices. There is a simple method for making money: hold cryptocurrencies with long-term value steadily, and once you build your position, do what you need to do, letting time verify your judgment. Don’t keep staring at the market; when you have time, focus on the industry landscape and changes. Holding without motion can make money easily, and holding steady may even lead to big earnings! This is the shortcut to making money and also the shortcut to enjoying cryptocurrency.

The chips in the crypto market are highly concentrated, and the possibility of being manipulated is much higher than in the stock market. Those coins controlled by financiers can have their prices manipulated at any moment. As long as your coin is valuable, don’t panic in any situation; hold it well, as that is your chip. Don’t let the financiers take it away easily; when the market comes, it will be hard to get in.

You must control your position reasonably; being fully invested or fully cash is a label of new investors. Gamboling all-in is just a joke. Those who constantly go all-in usually suffer significant losses. The short-term fluctuations in the crypto market are unpredictable; guessing correctly is merely luck. The crypto market changes too quickly; don’t fantasize about catching the bottom. Continuously balancing your cost with your position, seeking stable appreciation, is the correct approach.

Bubbles contain risks but also opportunities; learn to surf in bubbles, and you will reap abundant rewards. Respect bubbles, while also enjoying them.

1 Only invest in assets you can understand.

In the blockchain world, the vast majority of people are immature investors who need risk education and behavioral guidelines.

Understanding does not necessarily mean grasping the principles and algorithms of programs, but rather examining the cryptocurrencies you intend to invest in from several other dimensions.

How great is its commercial value?

Taking Bitcoin, which everyone is familiar with, as an example, it has effectively solved the issue of the security of currency transmission and has become an increasingly recognized asset. At the same time, it has also become a universal currency and value benchmark in the digital currency domain. Similarly, Ethereum introduced smart contracts, achieving a complete framework, with many tokens and applications subsequently built on the Ethereum blockchain.

When we evaluate a new digital currency, we must first consider what level its commercial value lies at. For those applications whose commercial value is unfeasible or insufficient, we should maintain sufficient caution.

Look at its stage of development and risk situation?

Whether a project is worth investing in depends on its stage of development and associated risks, which must be considered carefully.

For example, BTC has already matured and can be considered a relatively reliable and stable investment target in the blockchain world. Ethereum has also formed a relatively stable ecosystem, with many applications built upon it; thus, the risk of investing in Ethereum is also significantly reduced. Therefore, their valuations at this stage are relatively high.

On the other hand, many people are optimistic about EOS, which comes with much higher risks. If EOS is developed successfully, its high concurrency processing capability could outperform ETH, likely yielding excess returns. But the problem is, as of now, the EOS project has not been implemented; if it fails due to various reasons, such as technical complexity, internal team conflicts, or issues with BM, the project's development would fail, and the price would undoubtedly take a hit.

High risk brings high rewards; this is established in traditional finance and still holds in the crypto space. New cryptocurrencies are highly risky; once they succeed, the returns can be astonishing. Different developmental situations correspond to different risk levels, which is a factor we must consider when investing in digital currencies.

Look at the resumes and states of team members?

On one hand, one should pay attention to the team's historical performance; on the other hand, one should also focus on the current status of the team, such as information disclosure, development progress reports, etc. If they disclose very little information externally, it’s necessary to raise a red flag.

Understanding of 'cycles'.

In simple terms, don't be superficially deceived by 'trends'; the cycle we refer to consists of an ascent and a descent. Generally speaking, no judgments can be made from a single cycle; at least two cycles are needed to see the real trend.

For example, based on Bitcoin's past data, two years is a cycle, as Bitcoin's price forms a significant up and down cycle every two years. Most other digital currencies also follow the rise and fall of Bitcoin's cycles.

In other words, if you want to invest in Bitcoin and truly profit from it, you must be able to endure at least two years; four years is better, and ten years is best... Most people can't last two years. I know some people who, by early 2017, had no Bitcoin left and had completely left the space, missing out on this round of significant market movement.

3 Understand the basic ecological logic of digital currencies

If we make predictions about the development of blockchain, we can appropriately refer to the development path of the internet.

First, a relatively mature operating system emerges, followed by a surge of applications. Applications and operating systems share a mutually beneficial relationship.

Platforms like Ethereum, EOS, NEO, QTUM, etc., can be likened to operating systems in the blockchain domain. It is still unknown who the final winner will be, as we are still in the 'underlying' battle. Constructing a bottom-level application requires enormous resources and places high demands on the team. The metrics for measuring the project itself are the number and performance of applications. Therefore, when a platform claims that the number of applications has increased, it’s a significant positive signal. If the platform's performance improves substantially, it’s equally favorable.

For applications, the most important factor is the number of users. Although many applications currently have no users at all, that’s okay; having expectations is good enough. If many user applications can be developed now, they should skyrocket. Currently, the main application scenarios for blockchain are in finance and the Internet of Things (at least for now, and they are primary, not all). If we go into detail, there are excellent application scenarios in finance, such as payment, credit, insurance, equity crowdfunding, accounting systems, trading systems, etc. Therefore, applications in these areas are very worthy of attention.

Having a general understanding of the basic ecological logic of blockchain mentioned above will facilitate our selection of investment projects and value assessments.

Firmly adhere to value investing.

Short-term investing in the blockchain world is very dangerous.

Firstly, short-term volatility is extreme, and there aren't many rules in new fields; there are no price limits, and transaction fees are much higher than in the stock market. Trading occurs 24/7 without rest days; if you choose short-term operations, you’ll either suffer from nervous breakdowns or lose your fortune.

Second, investors here are more immature than those outside; chasing high and low prices is a common phenomenon, easily leading to greater market volatility.

Thirdly, the chips in the crypto market are highly concentrated, and the control by financiers is stronger, making their behaviors harder to predict.

Fourth, violating the principle of exchanging time for space, speculative behavior finds it difficult to enjoy the benefits of growth in the blockchain industry.

In the past few years, those who have really made money in this market are almost all long-term holders who adhere to value investing. Only by holding long-term can one seize wave after wave of market trends.

At this point, understanding the underlying technology itself becomes particularly crucial. Only by truly understanding blockchain projects that are likely to be implemented in the future can one have the courage and determination to hold long-term. This also presents the opportunity for hundredfold or thousandfold returns, achieving financial freedom.

How to understand? By learning frantically. On one hand, learn the underlying logic and knowledge of blockchain; on the other hand, study the design, application prospects, and team progress of various blockchain projects.

Blockchain is a field where money is made based on one's level of understanding; the essence lies in improving one's own understanding of the blockchain domain.

Be good at surfing in bubbles.

When it comes to asset bubbles, many people may think of housing prices. It cannot be denied that whether or not to participate in real estate speculation may have already determined the class many people belong to. Look at those who have seen their assets grow exponentially due to real estate speculation; what exactly did they do right? It was their understanding + courage that allowed them to join this bubble and benefit from it.

Back in 2013, when Bitcoin's price was over $100, I advised a few friends around me to invest a little spare money in Bitcoin, telling them to treat it as if it didn't exist and to check back in a few years. Some didn’t understand and ignored it. After a significant surge at the end of 2013, some cashed out happily. One friend, however, bought a substantial amount and still holds most of it today; she is now financially free and her family has immigrated to the United States. When I visited Los Angeles last year, she treated me to dinner, always thanking me for my suggestion back then. What she did right was also 'understanding' + 'courage', which led her to make the right choice.

And today, blockchain may indeed be a larger bubble, or perhaps it isn't. But the crypto market lady firmly believes this is an unprecedented speculative frenzy and an unparalleled opportunity.

Therefore, we need not be overly fearful of bubbles; we should adjust our mindset, rationally view the risks and opportunities within, and use wisdom and the correct attitude to surf the bubble!

Within a range you can bear, taking a gamble in a bubble might yield unexpected surprises.
Still, as I said, if you don’t know what to do in a bull market, click on my avatar to follow, bull market spot planning, contract password, and I’ll share for free.

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