Can I make money in the crypto space?
If your capital is below 100,000 and you want to stay stable in the crypto space without losing or even make a small profit, there is a simple method that can allow you to keep 'earning.'
Don't worry about not being able to learn; I can seize the opportunity, and so can you.
Everything in this world cannot escape the 80/20 rule, known as 'eight lose, one break even, one profit.' The financial market, including the crypto space, is the same; 20% of people control 80% of the wealth, those who can trade crypto and make money are ultimately in the minority, while most players are just fodder.
If you find yourself in a losing state but are unwilling to accept it and can't find the reason, feeling confused, then rather than engaging in self-inflicted exhaustion, why not first seek the cause? First, clarify several questions and understand the patterns of the crypto space.
First, let me pose a few questions for everyone to think about.
First, ask yourself:
1. Am I really one of the 20% or one of the 80%?
2. What qualifications do I have to make money in this industry?
3. Who is making money in this industry?
4. Have I studied seriously? Can my knowledge base surpass that of most investors?
5. Do I have the ability to think independently?
6. Is my investment strategy merely following the calls of friends, bloggers, or KOLs?
7. Can I remain calm like still water in the face of the manipulations of market makers?
Of course, there's no need to belittle oneself; this is the law of the world, not our fault, and we cannot change it. If one day the capital market becomes one where most people make money and a few lose, then it would become strange.
The market is merely a trading channel; the market itself does not generate profits. For example, with Bitcoin, during the process of buying from me and selling to you, Bitcoin itself does not generate profits.
The so-called making money in crypto is derived from the price difference during trading; in simple terms, if you can make money, it means someone bought at a high price from you; if you earn, someone has to lose.
Suppose there are ten participants in the crypto space, each with 10 dollars. If only a few make money, one person earns 2 dollars from each of the other nine, so this person has 28 dollars, and the other nine have 8 dollars each; the game can continue. If most people make money, nine people earn 2 dollars from one person, so those nine have 11 dollars collectively, and the one not only loses everything but also owes 8 dollars; the game cannot continue.
If a few people are making money, the market can be sustainable; if the majority are making money, the market will collapse.
It's similar to the lottery; as long as most people can win, the lottery company cannot continue to operate. Only when the majority lose, and a few win, can the lottery company sustain itself.
Therefore, the crypto market will use all methods to make most people lose money.
How to become one of the few people who make money?
There are many factors for losing money in crypto trading; in summary, there are six points; as long as you go against these six points, you can become a unique individual.
1. Severe short-term thinking
Simply put, we should focus on the long term; everyone discusses how much has risen today and how much has fallen tomorrow… rather than considering what this coin will be like in six months or a year. Everyone can see that those who have achieved financial freedom in the crypto space are not the ones making money in three to five days; they endure through time. Reasonably allocate positions, focusing mainly on the long term, with medium to short term as a supplement; even if you have a clear short-term trend change, you should follow it.
2. Chasing highs and selling lows
Chasing highs and selling lows is a mistake almost every crypto investor makes. Seeing a coin skyrocket and everyone discussing it, they buy in following the trend; after buying and being stuck with a 10% or 20% loss, they hesitate to cut their losses, holding on to wait for the moment to break even. When it continues to drop, incurring losses of 50%, 60%, or even 70%, they feel the coin is not good and cut at the floor; then they repeat this step over and over again. The issue of chasing highs and selling lows truly lacks effective solutions; it is a psychological problem.
3. Insufficient understanding
Many people do not think before investing and just follow what others say. Today a certain influencer says this coin is good, and they buy it immediately! Tomorrow some insider news says that coin will rise, and they buy that too... As for why this coin is good or why that coin will rise, they have no idea; this mindless investment approach guarantees losses; we can use others' understanding as a reference when investing, but we must first establish our own understanding; no matter how powerful the KOL is, they built their position before you, and only after they cut can they remind you; you can only help them lift the burden.
4. Inner restlessness
Impatience seems to have become the norm in the crypto space; many enter this market with the mindset of becoming rich overnight, yet are unprepared for a complete loss at any moment and lack the ability to get rich quickly! After buying a coin, they hope it will rise immediately, double in three days, or increase tenfold in half a month... If the coin does not rise for half a month or even incurs losses, they start making excuses for themselves, cursing the project for poor market management, blaming market manipulators, or complaining about inaccurate predictions from influencers...
Having seen too many stories of overnight wealth in the crypto space, and with almost every time period around me witnessing the birth of tenfold or hundredfold coins, subconsciously I treat the crypto space as a 100% winning casino, believing that as long as I buy coins, I can make money, without viewing it as a real financial market, where bloodthirstiness is the essence.
5. Not studying
Previously, a media outlet conducted a survey on investors' understanding of digital currencies; among 778 randomly selected digital asset investors, fewer than 10% could quickly and accurately describe 'what Bitcoin is roughly.' Only 17 individuals could accurately explain 'what blockchain technology is.'
Although the sample size of this data is small, it is sufficient to illustrate the current overall status of investors in the crypto space. If you can't even understand what you are investing in, how can you have faith? Without faith, how can you hold onto chips or good coins, no matter how low the price is?
Learning is an eternal wealth; only by constantly learning can one avoid being harvested.
6. Do not have a sound investment philosophy
Most people have no complete investment plan before investing and follow their feelings entirely. This intuition-based investment approach guarantees losses when unexpected situations occur.
Only by summarizing a set of investment strategies suitable for ourselves can we cope with various situations, whether rising or falling, and respond calmly; this at least allows us to maintain a winning mindset and avoid making wrong choices influenced by emotions.
Finally, I advise everyone not to be arrogant after making money; if you strike it lucky with a hundredfold coin, you should find ways to protect your wealth, as that is not your skill. Money earned through luck can be lost through lack of skill! Stay away from easily brainwashed individuals who often talk about surpassing Bitcoin and blockchain revolutions, yet do not even understand what a block is; this is a typical narrow-mindedness; if you tell them the truth, they will claim you lack understanding.
As long as retail investors can do the following six points, turning 100,000 into 5 million is not difficult.
These six points seem simple, but very few can truly achieve them. Below are the 'six iron rules' for guaranteed success in the crypto space, helping you navigate the market with ease!
1. Understand stop-loss and take-profit; trading crypto is for profit, not for holding forever. When the position trend goes wrong, sell decisively to avoid the risk of significant losses. Do not be greedy when making money in the crypto space, and do not hesitate when incurring losses.
2. Do not pursue absolute highs and lows; the market always has lower lows and higher highs, which ordinary people find hard to grasp accurately. We just need to buy in the bottom area, sell in the top area, and seize the trend.
3. Quantity and price must match perfectly; price increases without volume or hitting new highs without volume often signal that the main force is offloading or that the increase is exhausted. It’s better to miss out than to chase after it, to avoid becoming a bag holder.
4. Be quick to react; when favorable news emerges, quickly identify related sectors and projects. If you miss the first wave, timely position yourself in the second wave to still achieve decent returns.
5. Learn to rest; the main wave of price increases is very short, while the rest of the time is mostly oscillation or correction. Seize the main wave and learn to rest during the other times to avoid losses from frequent trading.
6. A sharp drop is the biggest opportunity; a market crash often breeds greater opportunities. Be fearful when others are greedy, and be greedy when others are fearful. When the market crashes, don't panic; choose quality assets to build positions in time and wait for a rebound.
If you have just entered the market, come find me, follow me, and I will teach you to learn while you operate;
If you find yourself in an undesirable situation, come find me; I will help you and prevent you from making repeated mistakes. If your position is stuck, I will provide reasonable solutions based on your entry point.
Because each person's entry point is different, the methods of resolution will also differ; some suit conservative investors while others suit aggressive ones.
I will surely use the most suitable method to genuinely help you solve problems and assist you in exiting.
