There exists a subtle investment trap in the crypto market

During a bull market, many people make a fortune in a certain sector and impulsively apply the same positions and leverage to a completely different sector, resulting in losing everything in the end. This common phenomenon often occurs when the market is hot.

For example, many people might earn their first pot of gold through leading sectors like chain oil or DeFi, and then take the same capital to venture into the MEME market, completely ignoring that the rules, risks, and required investment skills for this market are entirely different.

At the same time, many underestimate the element of luck in a bull market. Making big money in the short term is often not solely due to superior skills; luck plays a larger role. Over a longer period, whether these lucky individuals can continue to be profitable is a question. This is because the volatility and randomness in the short term tend to increase.

Many people can go from zero to a million in wealth, but end up back at the starting point in a very short time. A typical example is that over 90% of traders on the exchange's leaderboard cannot stick around for the next cycle.

The narrative in the crypto market updates rapidly, meaning that new tracks and new play styles could emerge at any time. Therefore, regardless of how much has been earned previously, one should remain humble and try to enter new fields with a conservative attitude. For instance, in emerging hotspots like AI Agents, only invest 1-5% of capital while learning and adapting to investment logic, rather than investing over 70% from the start; otherwise, when the market ends, you may face a 99.9% drop.