The logic of making money in the crypto space is essentially legal robbery.
In the crypto space, it is possible to earn 50,000, 100,000, 200,000, or even 1 million in a single day. This is a real phenomenon, and the probability is significantly higher than in other traditional markets.
For example, it is said: Doge in 2021, TRB in 2023, and People in 2024 have a high importance of cognition in the crypto space. More important than cognition is to build your own system.
A healthy system framework generally includes four parts: perception + cognition + decision-making + execution, all of which are essential.
No matter what you did before, what background you have, or how much capital you have in front of Bitcoin, everyone has equal opportunities! This has been true since its inception!
Let me introduce myself. I am a full-time cryptocurrency trader with assets in the tens of millions. I withdraw 100,000 yuan from the crypto space each month, feeling no impact on my life, enjoying a leisurely and free life without deceit or scheming, living the life I want. Since I started trading, I have experienced ups and downs, facing challenges just like all grassroots traders, with both pain and joy.
However, the most gratifying thing is that I did not give up and insisted on starting full-time trading, embarking on the path of making a living through trading. My experience is that to make money in the crypto space, there are several key points:
1. Cognitive Difference: A higher cognitive dimension allows you to make money.
For example, during lunch, one might ask why someone trades Doge better than others. It's not because they draw lines better than others, but because their cognitive dimension is higher. Their understanding of investments is several levels above most people, which is evident from their predictions of Doge several months ago, which became the main driving force behind this round of Doge's rise. Or take Tony the overweight guy, whose understanding of trading is several levels higher than others, allowing him to make big money from trading.
2. Information Difference: This is mainly reflected in some new narratives that have early high-odds gameplay, such as mining, selling, and leveraging. If you get involved earlier than others, you can earn good returns. As for how to have an information difference, it's quite long, so I won't elaborate here. There have been scattered mentions on Weibo in the past, and those who are interested can find it.
3. Execution Difference: Either work hard or have skills. When there are no cognitive or information differences, what sets apart the earnings of ordinary people is execution difference. If you work hard or have skills, you can still make money. For example, doing it yourself intensely, leveraging in bulk, creating tools, etc. Teachers like Wang, the director, He Bi, and those playing with NFTs who sell tools/use tools to earn are typical examples.
These three are fundamental, and they can also build on each other; cognitive differences combined with execution differences, information differences combined with execution differences, etc. For example, Vida's formula for making money relies on cognitive differences + information differences + execution differences. This model also determines that his trading behavior yields high returns, low risk, and strong sustainability. This is also the most stable profit-making model I have seen in the crypto space over the years.
If you have none of the three, you might fantasize that just by placing a trade or drawing dozens of lines to make the candlestick chart look like a watercolor painting, you can make money. It's better to deliver food instead.
For the vast majority of ordinary people, apart from the good luck of the chosen ones, the opportunities to achieve 5-10 times returns with a small capital in the short term through the market are basically just a few:
1. For highly volatile varieties, heavily invest for short-term swings: This is quite similar to gambling; in essence, it relies heavily on luck.
The chosen ones and naturally gifted players can indeed succeed; ordinary people just have to see how lucky they are. The downside is that once there is path dependency, the consequences are likely to be severe, earning back as much as lost.
2. Encountering a major trend, increase your position in profit: For example, when the weekly chart stands above MA20, double your base, set a wide stop-loss, and when it rises by X%, increase by 0.Y times. Make sure to set stop-loss orders to avoid significant losses. As long as you have good luck and indeed encounter a large trend, it becomes easy to ride it up. The reverse strategy (increasing position in profit) is also proven in mathematics and statistics to be a feasible strategy that can enhance the odds for speculators. It seems simple, but just being able to hold onto profitable positions and endure profit retracement is very challenging, requiring a strong mindset.
3. Do high-odds things, trade time for money: Leverage, sell, do KYC, provide guarantees for various trades, or even become a fee-charging signal teacher, etc. When the market is good, making money is relatively simple, relying on time to do it slowly, with little retracement. If you have 10,000 yuan in capital, relying on the secondary market to earn 10 times is likely to wear you out. When NFTs and altcoins are doing well, leveraging might bring you returns in just a month, with little risk. However, this is essentially an arbitrage business model, not a snowballing model; it is likely to earn quick money in the short term, and the information difference and profit margin will gradually be leveled out. For example, there are no longer mindless opportunities for NFT arbitrage.
4. Chase the trend on-chain: When the market is good, there are many high-odds opportunities on-chain, suitable for small funds to double short-term, at least more reliable than the secondary market bets. However, it also requires high capabilities, needing to grasp trends in a timely manner, access quality and timely information sources, and understand project mechanics.